One wallet is good, but many are crowdfunding!
What unites the Eiffel Tower, modern Internet startups, the election campaign of Barack Obama and the feature film “Iron Sky” The energetic civilization of the Sun? The idea of crowdfunding, or public co-financing, which was used to accumulate the necessary funds. This year, this new old way to attract finance is booming.
Crowdfunding comes from the English crowd funding, crowd – “crowd”, funding – “funding”. The idea is that anyone can chip in money for a particular project that aroused interest and a desire to participate in it financially with possible subsequent payment in the form of money, a share or a free unit of the product being produced.
Most organically, this idea is woven into the media business, whether it be music, cinema or other forms of mass cultural entertainment. And the maximum commercialization of this market, which makes it almost impossible for any creative character or product to go out into the world without the notorious connections and involvement in existing business configurations, has made the idea of crowdfunding megapopular.
Similar schemes have already been used by dozens of music groups, which can be listed for a very long time. Of the latest projects of this kind, one can single out the success of the national group Bi-2, which raised 1250000 rubles for the release of the album “Spirit”.
In the instrumentally saturated sphere of contemporary creativity, in the implementation of cultural projects, crowdfunding more closely resembles its forerunner – donations. At one time, the construction of the Eiffel Tower and the Statue of Liberty were financed around the world. Interestingly, the same engineer Eiffel was the architect of both structures.
However, there is another understanding in this niche of the prospects for the development of crowdfunding, as the closest to the market concept way of financing activities in the space of mass culture. A consumer can and should directly pay a group of performers, bypassing the entire thick commercial laying of the industry of modern show business.
So, young groups find money to promote and record albums, and film companies, for example, Spanner Films, release a documentary on climate change entitled “The Age of Fools” for collected from 2004 to 2009 pounds sterling. Moreover, unlike regular donations, this project also used a material incentive system. Given that the entire crew worked for a very low salary, the group members received a kind of crowdfunding “shares” that entitle them to pay once a year for ten years from the release of the royalty-dividend movie.
Moreover, the blockbuster Iron Sky released this year has become at the moment one of the best examples of work on crowd technologies. He even went around the “Age of Fools” in the amount of funds raised.
Since 2000, the United States has been practicing fundraising over the Internet for political purposes. During the 2008 company, Barack Obama at the preliminary stage raised about $ 272 million. However, the fundraising for the promotion and holding of the company in the United States has been used almost since the advent of this state. But as a rule, sponsors make large investments. In this case, the organizer of the Obama company managed to successfully complete the fundraising in small portions – 80% of the contributions were less than $ 200 with millions of donors.
However, such mimicry in a generally fairly standard crowdfunding donation program eliminates the main message that can make this way of financing projects attractive, popular and reliable. True crowdfunding is always an investment that involves a certain exchange and presence of obligations.
In the USA and Europe, crowdfunding has become a possible direction in the startup market. Information about them is posted on specialized Internet sites of those who, in turn, earn on commissions from 3% to 10% of the funds raised.
Since 2008, the Kickstarter crowdfunding service has been operating in 2008. Project authors post their ideas on the site and indicate the amount that needs to be collected. If the necessary funds are not collected within the specified period, the money will be returned to investor users.
Now the resource surprises with the variety of projects presented and looks more like a fair: they collect for anything.
In 2011, 27 thousand projects were published on Kickstarter, 46% of them were able to receive collective investments. The total amount that users of the service transferred to the authors of ideas was $ 100 million. In February, the Elevation iPhone project, launched on this service for the first time in history, raised a million dollars.