What is Crowdfunding?
Crowdfunding refers to the practice of raising funds through the internet in small amounts from a large number of people (Sigthorsson, 2015). It entails sourcing money from the public as an alternative form of financing to support a new businesses or social enterprise.
Who Uses Crowdfunding?
This method of raising funds is used by entrepreneurs and project initiators who develop an idea and request funds to implement it. Individuals and groups may also support the idea and raise funds on behalf of the project entrepreneur (Sigthorsson, 2015). Organizations may also be involved as mediators in crowd funding to link entrepreneurs with sponsors. These groups of people use crowd funding to raise funds for supporting various profit-making and entrepreneurial businesses.
Example of a Successful Crowdfunding Campaign
An example of a successful crowdfunding project is Soaclean, a washing machine device project posted by Vivi White in Indiegogo.com.
- Project Name: Soaclean: A Mini Ultrasonic Turbo Washing Device
- Project Description: The project initiator wants to launch Soaclean, a portable ultrasonic washing machine that makes cleaning easier because it has a powerful dual-direction turbo that can be used anywhere, any time, and eliminates 99% bacteria.
- Link: Soaclean a Mini Ultrasonic Turbo Washing Device
Characteristics of a Successful Crowdfunding
- What is good about the project:
- It is portable
- Saves energy and time (White 2018)
- It is efficient and effective – removes bacteria because it is powerful
- Leverages new technological trend of ultrasonic cleaning and turbo rotation technology
- Solves the problem of cleaning for every member of society
- Photos: it has 11 photos showing different dimensions of the machine; while it is in use, in different colors, shapes, and sizes. One of the strengths is that they are clear and attractive, and they have captured several aspects of the machine. However, the photos lack clear labels.
- Videos: there is one short and brief video lasting 1 minute, and describes how the machine is used and its benefits. It also has musical sounds that make the video exciting to watch.
- Prototype: the product is already in its production stage as the prototype has been tested and produced; it is now available for shipping.
- Other: Planning is underway, and the estimated delivery of the product starts in November 2018; but testing and logistical problems affect the shipping.
- Call to Action: they are asking for $10,000 and $40,821 has already been raised. I would contribute to the fund because the washing machine is unique, convenient and effective; and it will benefit me directly.