The High Cost of Crowdfunding. You’ve probably seen a crowdfunding campaign in one of your social media feeds or in the news. Crowdfunding is a way to bypass traditional lenders and funders and raise money from the public – through the collective efforts of friends, family, customers, investors and people who just want to help. There are dozens of crowdfunding platforms today. Some, such as Kickstarter and Indiegogo, are geared towards funding creative and business ventures; others, including Go. Fund. Me and You. Caring, are intended for personal fundraising causes – to help cover medical expenses, for example. Fees, Funding Models. While crowdfunding is a proven method of raising funds for a variety of reasons, it’s important to research the platforms before you choose one for your campaign. New initiatives by Swarm are trying to push crypto-based crowdfunding forward. But are they the solution? One thing to consider is what it will cost you. In most cases, you’ll pay a platform fee (what you pay the platform for hosting your campaign), plus a processing fee for accepting payments. A common fee structure is 5% for the platform and 3 to 5% for payment processing. For every $1. 00 you raise, you’ll have to give up between $8 and $1. Also consider the platform’s fundraising model. Some let you keep whatever funds you raise – whether you reach your funding target or not. Under other models, you don’t see a penny unless your campaign is successful in reaching its goal. It’s worth noting that this “all- or- nothing” approach actually works well: It motivates people to spread the word. List of all cryptocurrency ICOs, milestones, roadmaps and events for Bitcoin, Ethereum, Waves, Ripple and other altcoins. Despite being a somewhat new term, “crowdsourcing” has been existed in our society for years in many forms. For instance, video game’s beta invitation is a form. Updated Daily - Crowdfunding.com ranks the Top 10 Crowdfunding Sites by Alexa and Compete traffic rankings. Fees are also listed for each crowdfunding website. ![]() ![]() Statistics from crowdfunding giant Kickstarter show that of the projects that reached 2. Popular Platforms. Here is a closer look at three of today’s popular crowdfunding websites. GOFUNDMECampaign categories – 1. Business, Charity, Competitions, Events, Family, Newlyweds and Travel, plus a “Most Common” list, including Emergencies, Medical and Volunteer. Platform fee– 5% fee on all funds raised. Payment processing fee– 2. Started in 2. 01. Go. Fund. Me has become the world’s top fundraising site for personal causes and life events. Users raise $4 million each day, adding up to $2 billion in the last year. Most people use Go. Fund. Me to raise money for themselves, a friend or a loved one for things like medical expenses, education costs, volunteer programs, youth sports, pet needs and memorials. ![]() INDIEGOGOCampaign categories – 2. Animals, Art, Dance, Education, Environment, Gaming, Health, Politics, Religion, Small Business, Sports and Technology. Platform fee– 5% fee on all funds raised. Payment processing fee– 3%, plus 3. Pay. Pal. Projects on Indiegogo have raised more than $8. It offers two funding models: Flexible Funding, in which you keep all the money you raise, and Fixed Funding, which requires you to meet a specific target before you receive any of the pledged funds. Nonprofits can raise money for free through Indiegogo’s no- fee Generosity platform. KICKSTARTERCampaign categories – 1. Art, Dance, Fashion, Film & Video, Food, Music, Photography and Technology. Platform fee– 5% for successfully funded projects. ![]() Kickstarter is an American public-benefit corporation based in Brooklyn, New York, that maintains a global crowdfunding platform focused on creativity. The company's. The vast majority of crowdfunded efforts appear to attempt to deliver promised goods, but most projects are delayed. Topic Selection Wizard helps students pick a project topic. Experienced scientists answer student questions in an online forum. Step-by-step project help guide. This is an incomplete list of the highest funded crowdfunding projects, either successful or not. SeedInvest is powering startup investing through its premiere equity crowdfunding platform connecting venture capital, angel investors and accredited investors to. Compared to projects that only consist of a basic concept, our failure risk is considerably lower. What you see in our videos or screenshots is always real gameplay. ![]() Payment processing fee– 3% to 5% of each contribution. Kickstarter was launched in 2. More than 1. 00,0. Funding on Kickstarter follows an all- or- nothing model: If you don’t reach your funding target, you don’t get any of the pledged funds (and no money is charged to pledgers' accounts). Projects can’t raise money for charity, offer financial incentives or involve prohibited items. Donor Beware. While the vast majority of crowdfunding campaigns are legitimate, it’s important to note that the sites have little control over whether any money raised actually gets to the people it was supposedly raised for – or that it will be used in the manner advertised. In one recent news story, for example, a woman started a campaign on behalf of a neighbor whose son had been killed by a drunk driver. The woman collectednearly$3,0. In another incident, the Federal Trade Commission (FTC) settled a case involving a man on Kickstarter who used his backers’ funds for personal expenses, instead of making the board game he had promised. The Bottom Line. While a number of crowdfunding sites charge a 5% fee, some charge fees as high as 1. Read the proverbial fine print before starting any campaign to make sure you understand your options. And if you are thinking about donating to a campaign, but are concerned about its legitimacy, consider giving only to people you know and trust. You may also be interested in 3 Top Crowdfunding Platforms, The Ugly Side of Backing a Crowdfunding Campaign and Angel Investing vs. Crowdfunding: How to Raise Money for Your Startup? Pi- Top, a Raspberry Pi laptop you build yourself!
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November 2017
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