“Crowdfunding is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.” - Wikipedia
Google is an incredible place isn’t it? At the click of a button we can find out any piece of information we like. Great in theory but sometimes challenging with the endless maze of click bait distractions. A fine example of this is the ever growing, world of crowdfunding, which initially hit our search engines in 2012 via the first ever business crowdfunding platform called “Fundable.”
It’s now 2019 (time really does fly when you are funding) and we have a plethora of fundraising platforms to choose from, each with their own unique approach to gaining financial backers for projects and businesses that set out to seek donations from a large number of people.
As the owner of Gold Scout I thought I would share my knowledge of crowdfunding; what it does, how it works and why our go-to platform for fundraising is now Indiegogo. Hopefully this article will help my fellow entrepreneurs (because it’s important to support each other right?) and potential investors (you rock!) to gain a clearer insight into the funding phenomenon that has been sweeping the Internet since 2012.
I promise no click bait!
What is Crowdfunding?
So lets imagine you woke up one night with a great idea to create Post It Notes (step aside Romy and Michele and hold off on that High School reunion because YOU really did have this GENIUS idea!). You then spend countless days, months, even years planning, strategising, researching and developing while also spending all your hard earned money on trademarks, prototypes, domain names and a never ending list of “To Do’s” that you proudly tick off your sample Post It Notes.
Finally your idea is ready to be presented to the world and consumers around the globe are screaming to get their hands on this life changing invention. But, how are you going to scale your business when you have already invested everything you have into developing your product? The bank sadly refused your loan application; you can’t find an investor without first showing a profit and those hungry Post It Note consumers are still screaming at you!!
This is where Indiegogo can turn those screaming fans into financial backers. Each fan pledges X amount of money and like magic you’ve raised enough money to turn your Post Its into profits! #winning! Now, to be fair not all crowdfunding campaigns are successful. You will need a great product or service that people actually want, and a well executed, innovative fundraising campaign that you truly believe in.
Who Exactly Is Indiegogo?
“Donate to this!” “Help me raise money for this!” “Invest in that” Pledge to this!”
With the many fundraising efforts sweeping our news feeds daily, if you are a business looking for funding it can be hard to decide which platform is right for your crowdfunding endeavours. Equally, if you are looking for a new crowdfunding venture to invest in you want to know exactly what happens to your money once you make the pledge, right?
Here are some reasons why Gold Scout has chosen Indiegogo as our faithful crowdfunding platform:
- The name “Indiegogo” in itself can be translated to “Indie” = Independent and “gogo” = go-getter! And who doesn’t love an Independent Go-Getter!
- Indiegogo takes the pledges straight away while other platforms like Kickstarter will only take pledges once a successful campaign is completed. This means that the host will not get a cent unless the target financial goal has been met, and that an investors pledge is basically non-existent and sits dormant for the duration of the campaign. High five to Indiegogo who waits for no one and allows people to start fulfilling their dreams from that first pledge! *Snap*
- Because Indiegogo is instant with collecting pledges it allows for better analytics and the ability for the campaign host to keep on file the details of each individual pledger. Here at Gold Scout we love to keep our fans up to date about our growth as a company and also show a whole heap of eternal gratitude for anyone who has supported us a long the way. Life is too short to not share the love and we want to keep sharing our wins with the people who made our dreams possible.
How To Make a ‘Pledge”?
The great thing about Indiegogo is that you have the opportunity to contribute at a level you can afford towards companies and projects in the earliest stages of development, or you can select a perk unique to that project. No amount is ever too small or too big and from the moment you pledge on Indiegogo an entrepreneur can go get their dreams all because of your contribution!
Why Did I Choose Crowdfunding?
I’m just a girl, standing in front of a dream that I have been working on for a long time!
Gold Scout is an idea that has come to fruition thanks to the generosity of others. Anyone who has ever launched a business will know the hard work that goes into building an idea. However, the reality is I would never be able to have Gold Scout without an investor or platform like Indiegogo.
It enables creatives to bring ideas to life thanks to the support of others. Who knows, Gold Scout could even become the next Post It Note sensation!
If you would like to know more about crowdfunding and Indiegogo please feel free to shoot me a comment. I may even find the answer on google, provided I can get past the click bait.
LAUNCHING SOON ON