Micro-financing & Crowd funding (continued)

Aug 21, 2011


Crowd funding (sometimes called crowd financing, crowd sourced capital, or street performer protocol) describes the collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the Internet, to support efforts initiated by other people or organizations. Crowd funding can be used to raise money or support for any number of causes, and has become particularly popular for the funding of music projects.






By now, everyone is probably aware of Kickstarter, probably the best known and most used social crowd funding site, which we posted about previously. Kickstarter claims to be the largest funding platform for creative projects in the world. Kickstarter grabbed the crowd funding spotlight after the open source Facebook alternative Diaspora raised more than $200,000 on the site. Kickstarter projects must be fully funded before funding time expires or no money changes hands. Project creators are required to offer rewards — products, benefits, and experiences — to project backers. Integrates with Facebook, Twitter, and offers a widget for your website. Kickstarter charges a 5 percent fee, in addition to third party processing fees.

In addition to Kickstarter, there are a growing number of other options available, offering customization and integration into existing websites and platforms. We've also included a number of social investing sites like ProFounder and PeerBacker, which are similar to crowd funding, but geared more toward businesses and capital investments.

We'd love to hear about your experiences (positive and negative) using these or any other of the online fund raising tools for your projects.


ChipIn is a web-based service that simplifies the process of collecting money from groups of people. Embed the ChipIn widget into your website, or on MySpace, Typepad, Blogger, Netvibes, or any web page where you can paste a few lines of HTML. Your contributors can track your progress on the widget and chip in directly to your PayPal account. ChipIn is free. Transactions are subject to PayPal payment processing fees.

Cofundos crowd funds open-source software projects. Open source software ideas are submitted and discussed. Requirements are defined. Specialists offer estimates on completing the project. Bidders select the specialists and donate bid amounts.

IndieGoGo offers anyone with an idea — creative, cause-related, entrepreneurial — the tools to build a campaign and raise money. Project categories include gaming, film, design, education, mobile, and technology. Integrates with Facebook, Twitter, and other social media platforms. Offers a widget to showcase your campaign on your website. Unlike many crowd funding sites, you keep all the money you raise, even if you don’t meet your goal. Track contributions with the analytics tools and stay on top of fulfillment with the dashboard. There is a 4 percent fee on the money you raise when you meet your funding goal. Third party payment processing fees also apply. Theater for the New City's "Woody Guthrie Dreams" is being crowd funded on this site.

Peerbackers is also a tool for business owners to raise capital from their peers — in small increments — in exchange for tangible rewards. If you reach at least 80 percent of the funding goal by deadline, the funding is released to you. Peerbackers charges a 5 percent fee, in addition to third party processing fees.

ProFounder is a crowdfunding platform for businesses to raise capital from their communities. With ProFounder, you plan your fundraising, create your pitch, and offer terms. You choose how much revenue to share and how long you’ll share it. Because this is not a loan, your payments to your investors are not fixed, and depend only upon your success. And because this isn’t equity either, you give up no control or ownership of your company. Each quarter throughout the investment term, ProFounder helps you calculate payments that each investor is due and manage the distribution of funds owed. Profounder charges up to a 5 percent fee of the total funding.

RocketHub is a community for "creatives and fuelers" — those with projects and those who contribute. Submit your project to the "Launchpad" for fueling. Users earn rewards and badges, designed to display dedication, enthusiasm, experience and success. Keep any money raised. RocketHub charges a flat 8 percent if your venture meets its financial goal, including payment-processing fees.

Create-a-Fund helps facilitate the collecting of funds, making it easy for non-profits, oganizations, and charities to raise money online.
First Giving partners with non-profit organizations to allow them to plan, execute, and measure successful online fundraising campaigns and charity fundraising events with their fundraising software. First Giving also offers options for individuals to raise money online.
 
Give.FM was created by Tivix, Silicon Valley company, which develops high-engagement web applications for non-profits and socially conscious brands. Tivix has created online solutions for non-profit organizations including the San Francisco Theater Festival.
 
Senzoo is an online donation widget for fundraising by musicians, artists, developers, open source projects, and non-profits. It lets people donate via PayPal, Amazon FPS, and Google Checkout. Works on major blog and forum like Wordpress, Drupal, PhpBB, Typepad, and Movable Type.
 
 
Twollars is a currency of appreciation for Twitter. Twollars are designed to reward positive actions. You can give Twollars when someone helps you by tweeting useful information, sharing a tip, writing an inspiring Tweet or if you are just feeling generous.

You can find comprehensive, updated information on crowd funding on this webpage/pbwiki.

Additional information on this website also.


Source:

http://www.practicalecommerce.com/articles/2853-13-Crowdfunding-Websites-to-Fund-Your-Business

Tags: crowdfunding, mircofinance, social investing

Sub Categories

TECHNOLOGY: Technology Funding
TECHNOLOGY: Social Media