Table of Contents
Crowdfunding sites have revolutionized the way people raise funds for projects and causes they believe in. This innovative approach allows individuals to pool their money together to support a common goal, enabling creators to bring their ideas to life without the need for traditional financing.
In an era of thriving creativity and entrepreneurial spirit, crowdfunding platforms have become the launching pads for countless ideas, ranging from tech gadgets and creative arts to social causes and community projects.
Imagine you've developed a groundbreaking solution to clean the oceans of solid waste, but you lack the financial resources to make it a reality. By using crowdfunding sites, you can raise funds by sharing your vision with the world and attracting support from people passionate about environmental conservation.
Once your project is complete, you can offer your backers a token of appreciation, such as the finished product.
As we dive into the world of crowdfunding, it's important to get a handle on the different platforms out there, what makes each one special, and how to tackle any bumps along the way. By exploring the best crowdfunding platforms, checking out successful campaigns, spotting common mistakes, and grasping the importance of good logistics, we can figure out the secrets to launching a winning crowdfunding project.
Popular Crowdfunding Platforms
KissKissBankBank: Crowdfunding Platform for All Projects
KissKissBankBank, a French crowdfunding platform founded in 2009, empowers individuals to fund creative, community-focused, and entrepreneurial projects. Adrien Aumont, Ombline le Lasseur, and Vincent Ricordeau created the platform to make funding accessible to everyone. Since its inception, KissKissBankBank has supported over 21,000 projects, thanks to the backing of 1.8 million committed supporters.
The crowdfunding site has raised approximately €170 million and boasts a success rate of 72%. The average pledge on KissKissBankBank is €64, and the platform covers a wide range of categories, including film and video, books, art, photography, food, agriculture, music, and journalism.
Most Successful Campaigns
The Odyssey Project aims to build a video game museum in France that will hold the world's largest collection of consoles and has captured the public's imagination and support. In under two weeks, it reached the symbolic €1 million mark, raising €2,270,511 with 32,419 contributions, proving the strength of community support for preserving gaming history.
This project aimed to publish the first volume of the series titled "La Forteresse du Chaudron Noir" (The Fortress of the Black Cauldron). Following its initial success, the series continued with "La Corne des Sables d'Ivoire" (The Horn of the Ivory Sands), offering readers an interactive story where their choices influence the plot. The project's success highlights the potential of crowdfunding to support unique and engaging literary works.
Crowdcube: An Equity Crowdfunding Platform
Crowdcube, a British equity crowdfunding platform, offers a novel approach to fundraising by allowing individuals to pool investments in exchange for equity in businesses. Similarly, a real estate crowdfunding platform helps accredited investors to participate in residential and commercial real estate projects by pooling their resources.
This model eliminates the need for traditional intermediaries like angel investors and banks, making equity investment accessible to a broader audience. Crowdcube's mission is to democratize investment and provide opportunities for entrepreneurs and everyday investors.
Most Successful Campaigns
As one of the first companies to leverage crowdfunding sites on Crowdcube, E-Car Club sought to become the go-to provider for electric car rentals in the green-sharing economy. The project raised £100,000 from 63 accredited investors, with the average investment being £1,500 and the largest single investment at £15,000.
The success of E-Car Club attracted significant attention from Europcar, Europe's largest automobile rental firm, which invested heavily in the company. This investment resulted in a 300% return for backers when Europcar acquired E-Car Club, showcasing the potential for high returns through an equity crowdfunding platform.
One of London's largest breweries, Camden Town Brewery, aimed to raise £1.5 million but exceeded expectations by generating over £2.7 million from 2,172 backers. The funds were used to build a new custom-built brewery. Investors who contributed £10 received an equity certificate, while those who invested more received beer-related prizes.
The brewery's success caught the attention of Anheuser-Busch InBev, leading to an acquisition that provided shareholders with dividends ranging from £1.0861 to £1.2526 per share, depending on the growth option chosen.
Crowdfunding site Wefunder allows startups to raise money and capital from individual investors, including both accredited investors and unaccredited investors, thanks to a clause in the JOBS Act of 2012. This legislation opened the door for everyday people to invest in private enterprises at their early stages, broadening the pool of potential investors and fostering innovation.
Most Successful Campaigns
Immersed is a VR productivity software and meeting app designed to enable remote teams to collaborate as if they were in the same room. The project raised $1.75 million in a single day on Wefunder, surpassing $2 million within a few days and reaching $9 million within two weeks.
Today, hundreds of thousands of people use Immersed for virtual meetings and work, with power users spending an average of 38 hours per week on the platform. This campaign highlights the potential of VR technology to transform remote collaboration.
Atom Limbs wants to create mind-controlled bionic limbs to help amputees, quadriplegics, and vets. This innovative technology promises to significantly improve the quality of life for those with physical disabilities.
The project raised over $3 million from 8,070 accredited investors on Wefunder, positioning itself as the world's first mind-controlled robotic wearable with individual finger control and a sense of touch.
Kickstarter: Platform for Creative Projects
Crowdfunding sites like Kickstarter are an American public benefit corporation in New York. It has funded over 100,000 creative projects since its launch, with various categories ranging from comics to journalism, video games, technology, movies, publishing, food, stage shows, board games, and music. The crowdfunding site aims to support creative projects and make society more vibrant and healthy by encouraging artistic expression.
Most Successful Campaigns
Brandon Sanderson's novel project, Surprise! Four Secret Novels became the most successfully funded Kickstarter campaign in history, raising over $41 million with the support of 185,341 backers.
The project garnered $15 million in the first 24 hours and $20 million within three days, setting a new benchmark for crowdfunding success. This campaign illustrates the power of an established fanbase and the appeal of exclusive, high-quality content.
Pebble Technology partnered with Foxlink to launch the Pebble Time wristwatch, featuring a color e-paper display and other cool features like a microphone a charging cable and customized for Pebble.
The campaign raised $20.4 million from over 78,741 backers, setting a record for the highest-funded Kickstarter campaign at the time.
Although Fitbit eventually acquired Pebble and discontinued it, its crowdfunding success demonstrated the potential for innovative tech products to capture significant market interest. Effective logistics management was crucial for fulfilling tens of thousands of orders, highlighting the importance of reliable logistics in crowdfunding campaigns.
Indiegogo: Online Fundraising Platform
Since 2008, Indiegogo has enabled the public to raise funds for various projects, particularly tech products. The platform has supported over 800,000 ideas with the help of over 9 million backers worldwide.
The crowdfunding site's rewards-based system allows backers to receive gifts instead of ownership stakes, fostering a supportive community of innovators and early adopters. In 2016, the crowdfunding platform expanded to offer equity-based campaigns through a partnership with MicroVentures, allowing unaccredited investors to participate in equity crowdfunding sites. This makes Indiegogo not just a rewards-based platform but also an equity crowdfunding site.
Most Successful Campaigns
The Flow Hive revolutionized beekeeping with its distinctive honey frame, which enables honey harvest without opening the hive. This method reduces disturbance to the bees and simplifies the extraction process for beekeepers.
The Flow Hive campaign launched in February 2015 with a modest target of $70,000, achieved within seven minutes. The campaign raised $250,000 in the first 15 minutes and eventually secured $12.4 million in 30 days, breaking several crowdfunding records.
Today, Flow Hive is one of the most successful crowdfunding campaigns launched outside the U.S. Efficient logistics management was crucial in delivering thousands of units to backers worldwide, ensuring customer satisfaction and maintaining the campaign's credibility.
The sequel to the 2001 comedy film Super Troopers was greenlit following a successful crowdfunding campaign on Indiegogo. The project reached 73% of its $2 million goal within 14 hours and achieved the full amount in just 26 hours, ultimately raising $4.7 million.
Super Troopers 2 premiered on April 20, 2018, and was distributed by Fox Searchlight Pictures. This campaign highlights how crowdfunding can support creative projects and engage dedicated fanbases. Effective logistics were essential to fulfilling various rewards, including digital downloads, merchandise, and special experiences.