'Net Features : crowdfunding

Crowdfunding Advice From a Pro

Amberly Dressler — Tue, 21 May 2013 10:00:00 GMT

Entrepreneurs turn to crowdfunding for a variety of reasons, but turning concept into reality certainly tops the list. But where does a company start? At the beginning, of course.

When introducing a project, clearly explaining the "what" and "why" is an imperative step in the launching process, according to crowdfunding expert Kendall Almerico, CEO of ClickStartMe.

"Give supporters a reason to keep reading," said Almerico. "The initial paragraph is not a place to give excessive details or a long, drawn-out back story. It is important to personalize the project and show passion. Most importantly, tell potential supporters why they should be excited about the project, too."

This advice coincides with the rest of ALmerico's suggestions, including "Keep It Simple Stupid."

"Generally you have less than 5 seconds to grab someone’s attention with something in writing," said Almerico. "If your project description introduction isn’t compelling, 75 percent of people will not read any further."

Almerico's Top 10 Tips can be found on the ClickStartMe Blog.

Trends: Crowdfunding on Fire

Pete Prestipino — Tue, 09 Apr 2013 06:00:00 GMT

Crowdfunding captures the Web's attention

According to a recently released research from massolution, over a million crowdfunding campaigns raised $2.7 billion in 2012 and that number is expected to double again this year (2013). The study revealed an 81% increase in funds raised on CFPs (crowdfunding platforms) resulting in the successful funding of more than 1 million campaigns. North America and Europe consequently were responsible for over 95% of the total market according to the report.

Lending-based crowdfunding grew 111% to $1.2 billion, while donation and rewards-based platforms including Kickstarter and Indiegogo grew 85% to $1.4 billion. Equity-based crowdfunding grew 30% to $116 million.

“Consistent with our 2012 forecast, total crowdfunding volume nearly doubled last year, and with regulatory bodies continuing to pave the way, we expect global crowdfunding volumes to exceed $5 billion in 2013,” said CEO of massolution and Crowdsourcing.org, Carl Esposti. “While lending-, donation-, and reward-based crowdfunding have thus far been leading this global financial revolution, equity-based crowdfunding is about to take center stage in the U.S. The JOBS Act, which will allow non-accredited investors to make investments in exchange for equity, is expected to go into effect by the end of 2013.”

Crowdfunding Site Wants to Help Small Businesses

Michael Garrity — Thu, 14 Jun 2012 20:30:00 GMT

Coming off a highly acclaimed and much lauded beta period, small business crowdfunding site Rock The Post is announcing the launch of version 2.0 of its site.

Built with small companies and entrepreneurs in mind, Rock The Post allows individuals to ask for any amount of money, and they get to keep all of what they raise with the exception of a four percent service fee, regardless of if they meet their goal or not.

The new version of Rock The Post focuses on customer experience and improving its integrated tools. For instance, Rock The Post also helps out by offering members personal consultations from one of its professional advisors in an effort to ensure that every project has the best chance of meeting its goal.

The question is, can Rock The Post be the site that helps you get your next big Web business off the ground?

Fund Your Next Project at Kickstarter

Pete Prestipino — Wed, 11 Jan 2012 17:30:00 GMT

Crowdfunding is a popular way to raise funds for the projects you're actively working on. The big daddy of all online crowdfunding platforms is KickStarter, which had a terrific 2011.

So good, in fact, that you might just want to fund your next project through Kickstarter. The platform raised nearly $100 million in pledges in 2011, funding 12,000 projects -- 46 percent of which ultimately launched.

If you are wondering which categories get funded most often, look no further than the "category wheel" available here to see how different projects were funded. Film and music dominated, but design saw the biggest growth. Games made an appearance, but publishing and technology projects fared positively, too.