Tag Archives: donations

Fundable Research Pegs Crowdfunding Industry to Inject $65 Billion in 2014

12 Feb

Fundable Infographic Predicts Crowfunding Industry Growth in 2014 to Inject $65 Billion and Create 270,0000 Jobs

By Robert Hoskins

Fundable.com’s infographic below details some great facts for people who are writing business plans and reporters looking for some great stats to quote for blogs, online media outlets and print/broadcast media.  These numbers are going to grow as more and more people become aware of the booming crowdfunding industry.

This is just the beginning, but report reports, white paper and trade press articles continue to paint a rosy picture for the accelerated Crowdfunding industry growth rate that is predicted for the combined fundraising economic stimulus forecast for donation-based, equity-based and perks/rewards crowdfunding campaigns in 2014.

Fundable’s Crowdfunding Statistics predict that:

  • In 2014, Crowdfunding will add 270,000 jobs and inject $65,000,000,000 into the worldwide economy.
  • Crowdfunding companies create 1 new job for every $37,702 invested/donated.
  • For every $1 invested in Crowdfunding startups leads to $6.36 in revenue.
  • At this growth rate, Crowdfunding will contribute $500 billion in funding per year by 2020.
  • This $500 billion in funding will generate $3.2 trillion in economic value per year by
  • In tandem, Crowdfunding will create 2.2 million new jobs by 2020

Fundable Infographic reports that Crowdfunding will add 270,000 jobs and inject $65,000,000,000 into the worldwide economy# # #

Planning a School Fundraising Campaign? IncitED Crowdfunding Platform Offers Educators a More Effective Local Community Finance Tool

14 Jun

IncitED announces new crowdfunding website created for educators to offer new education funding resource to attract local and virtual community support

By Robert Hoskins

Individuals in the front lines of education are increasingly taking a direct community-based approach to overcoming funding obstacles by using online fundraising to bring high-impact projects to life. IncitED.org, a new crowdfunding platform devoted to education, was created by two local teachers as a resource for people facing a similar challenge – how to make a difference in education with little or no access to traditional streams of funding.  On June 7th, IncitED launched its beta web platform, with a collection of easy to use tools for creating grassroots online fundraising campaigns to support projects in need of $500-$50,000 and capable of reaching out to supporters both locally and around the world.

IncitED announces new crowdfunding website created for educators to offer new education funding resource to attract local and virtual community support

IncitED announces new crowdfunding website created for educators to offer new education funding resource to attract local and virtual community support

The inspiration for the new platform was the result of frustrations around getting new and worthwhile ideas off the ground.

IncitED co-founder Jaime Wood explained, “So many people we knew or would meet at conferences were running into the same roadblocks. They had great ideas and were willing to invest their blood, sweat, and tears into doing something to improve education, but getting even a few thousand dollars through the normal channels to develop an idea into something real was impossible or close to it.”

And with the surge in attention surrounding viral crowdfunding campaigns on platforms like Kickstarter and IndieGogo throughout much of 2012 the core ideas for a new social enterprise began to coalesce.

Wood’s business partner Kevilina Burbank recalls, “We’d both contributed to crowdfunding campaigns for friends making music or fundraising for a worthy cause. One day it finally just hit me. I said to Jaime, ‘Why not make a Kickstarter for Education?’, and we haven’t looked back since.”

IncitEd launched its first fundraising campaign in late April. Alan Burnce, a former English teacher, had become frustrated by school reform efforts that he felt it made it harder for him to connect with students meaningfully. He set out to make what he termed a more “authentic learning experience” by opening a self-directed learning center to serve teens who were not thriving in a traditional school setting. He saw an opportunity in crowdfunding and turned to IncitED because of its exclusive focus on fundraising for education. His Open Road Learning Community for Teens (http://www.incited.org/projects/9) campaign set a fundraising target of $7,500 and over the course of a month he was able to attract support from more than 100 individual contributors and eclipse his original target by over $2,000.

“I knew a lot of people believed in me, and I was confident that they’d want to help make an impact in teens’ lives by supporting the program,” said Burnce. “Crowdfunding helped get Open Road’s story out there, and I was able to pull together financial support from all over the country.  It was tremendously gratifying to find out how much people cared.”

A goal that the company has set for itself in its early months is to demonstrate the spectrum of education projects it was created to support. Founders Wood and Burbank have roots in traditional public school education as well as in the alternative ed and non-profit communities. Although IncitED anticipates many school-based campaigns, it doesn’t require those that want to use its platform to be working inside a traditional school or even have formal training in education.

“There are people everywhere who don’t necessarily think of themselves as educators in a conventional sense, but the things they’re passionate about and want to offer to the world often have a strong element of education. Somebody who wanted to develop an empty lot in the community to teach their neighbors about organic gardening would be a perfect fit for IncitED,” said Wood.

IncitED’s list of upcoming beta campaigns shows the diversity of education projects that its founders have envisioned from the birth of their original idea almost a year ago.

“We’re so excited about the groups we’re going to be working with,” said Burbank. “There’s a scholarship fund for an acrobatics school,  a project for a non-profit helping homeless kids earn their GED, another for a public grade school trying to save its Suzuki violin program. We’re also going to be helping an education-software company in New York to raise money to develop a new classroom assessment tool that could benefit teachers everywhere. There are so many dedicated people out there who want to make a difference and we want to support as many of them as possible through IncitED.”

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Beta Crowdfunding Portal YourStreet.com Opens Doors in Wyoming

1 Mar

By Robert Hoskins

YourStreet.com announces the launch of its open beta online platform where individuals can fund any investment project, invention, or idea and charities and sponsorships can create a campaign to raise funds for their causes. The company encourages project owners to list their projects for free during the beta phase.

YourStreet.com Announces New Crowdfunding Site in Wyoming

YourStreet.com Announces New Crowdfunding Site in Wyoming

YourStreet represents a unique variation on popular crowdfunding sites where people can allocate their money to projects, ideas, inventions, and even charities that speak to their interests, beliefs, and needs. The platform is divided into three categories, each designed to serve a specific YourStreet user.

Those with targeted funding goals for ideas, inventions, patents, or products and those looking to fund an idea can visit the “Contribute” section of YourStreet.com. And those seeking to raise funds or donate to a charitable cause can use YourStreet’s “Assist” area.

“Whether an investment or project owner, or someone looking to assist others financially in the pursuit of their goals, our goal is put people in control of their own futures,” remarks YourStreet founder Ryan Greene.

YourStreet.com is fully functional during its open beta testing phase and project owners are encouraged to take advantage of the opportunity to list projects for free during this time. After the beta phase, YourStreet will continue to offer a highly competitive pricing model for all participants.

Crowdfunding Brings Life-Changing Surgeries to Children in the Developing World

14 Feb

By Robert HoskinsFront Page PR

Today, CURE International, one of the largest providers of specialty pediatric surgical care in the world, and Watsi, the first global crowdfunding platform for healthcare, announced a formal partnership to bring life-changing medical care to thousands of children in the developing world.

CURE International Launches Donation Crowdfunding Campaign on Watsi

CURE International Launches Donation Crowdfunding Campaign on Watsi

“Our hospitals around the world receive thousands of patients each year — children needing specialized surgical care,” said Joel Worrall, vice president of cure.org. “We rely on donations from caring individuals to help fund their care. Watsi, with their social approach to funding medical care, will help us bring healing to more children.”

CURE and Watsi had previously engaged a one-month pilot partnership. During that pilot, CURE sent Watsi profiles for 25 children awaiting surgical care, Watsi posted them on its website, and 400 individuals from around the world donated more than $26,000 to directly fund life-changing medical treatments for all 25 patients. CURE provided the necessary medical care, and Watsi donors received an update about the patient they supported. During this test phase, treatments fully funded by Watsi donors included aone-year-old baby with hydrocephalusa 6-year-old girl with a burn scar contracture, and a 6-year-old boy with clubfoot.

“Our mission is to connect people to expand global access to health care. We’re passionate about leveraging the power of technology to create change for people in need of medical care around the world,” says Grace Garey of Watsi. “CURE is doing the kind of work we – and our community of users – want to support. We’re excited to see this partnership grow.”

As a result of the formal partnership announced today, CURE and Watsi expect to provide thousands of life-changing surgeries to children who would otherwise lack access to medical care. This innovative partnership is the first of its kind for both organizations. Individuals can visit watsi.org to directly fund a medical procedure.

“We rely on donations from caring individuals to help fund their care. Watsi, with their social approach to funding medical care, will help us bring healing to more children,” continued Worrall.

FunderHut Opens New Community Outreach Crowdfunding Platform to Help those in Need

7 Feb

By Robert HoskinsCrowdfunding Press Center

FunderHut.com launches new Crowdfunding website that combines the collaborative thinking of group funding for projects in sixteen themed categories. The explosive growth of the crowdfunding brings unprecedented opportunity to those once unable to receive funding for various projects via traditional means.

FunderHut Community Support Crowdfunding Platform

FunderHut Community Support Crowdfunding Platform

FunderHut was developed for that purpose. Someone with a goal that needs funding, whether it’s to start a community garden, fund a small business, publish a book, or help a loved one pay for medical bills, can create a pitch on FunderHut and ask for contributions.

FunderHut has opened the door to funding in many categories that we not previously offered by “crowdfunding” Websites. One of FunderHut creators, Eugene Salganik, developed this concept after past experience as one of the founders of a local civic organization, where he chaired an Economic Development Committee.

This position showed him just how difficult it was to fund community based projects. Excited by the concept, sons Alan and Dan were responsible for the site’s design, details, and social networking elements. The team boasts the fact that with the development of FunderHut, the public now has the ability to fund projects to make communities stronger.

The process to get started on FunderHut is an easy one. A project creator begins by creating a fundraising campaign and explaining why he or she needs the funds and how they will be used. Every project has built-in social media sharing tools, but project creators are free to use any medium that will help them get the word out. Creativity is key.

With a good project and the right pitch, the project creator can raise the funds necessary from generous contributors to accomplish their goal. In addition to helping someone achieve his or her goal, contributors can, in return, receive Kudos: pre-defined tokens of appreciation given by project creators to project funders. Think of them as a way to thank people for their contributions. The more dollars pledged, the more special and unique the Kudos a contributor can receive.

Another unique element is an enhanced social side of FunderHut called the Community Wishlist, an element of the Website that encourages anyone to share his or her ideas for community improvement. If a wish is popular amongst users, with the click of a button, that wish can become an actual, fundable project.

“It’s great that someone can contribute to a project and see the direct effect their contribution made,” commented Dr. Marina Vitkin, a small business owner and a contributor to one of the first projects in Chicago, IL. FunderHut offers helpful tools for seamless project creation, project funding, social-sharing, and a timeline for tracking an entire campaign from start to finish. Every project offers an open discussion forum among creators, users, and anyone else who wants to contribute.

Building a Mature Crowdfunding Industry with Business Partner Programs

31 Jan

By Robert Hoskins

As the Crowdfunding industry begins to mature, more and more Crowdfunding Service Providers (CSP) will need to find a way to differentiate their platform versus the competition.   New industry players that have run eCommerce centers and industry portal sites before will have an edge on the new Crowdfunding platforms simply because they have more experience in building, not only the superior technology underneath, but also nurturing the Business Partner Programs and Channel Marketing Programs that will make their Crowdfunding clients more successful.

Providing a portfolio of professional Crowdfunding services such as news wire press release distribution packages from vendors such as Businesswire.com, Marketwire.comPRNewswire.com and PRWeb.com  and list of public relations firms to help Crowdfunding campaign managers write professional profiles, press releases, write media pitches and build custom tailored media databases of the right reporters to pitch their respective stories would significantly improve the Crowdfunding campaign’s ability to generate positive publicity.

The more positive stories that a Crowdfunding campaign can generate, the more potential donors they can reach with their marketing messages.   According to recent news reports, Kickstarter only had a success rate of 43 percent in 2012, but if they provided a Business Partner Program that provided a list of PR, SEO and marketing vendors to help their Crowdfunding campaign managers become more successful, their success rate should improve dramatically.

In addition to marketing vendors, it might be wise to include a group of professional for-profit and not-for-profit fundraising firms that have been collecting donations via regular marketing programs for decades.  Writing professional case statements is very important in the fundraising world as is writing professional bios for the board of directors.

Last, but not least, how does one go about building a potential donor list? Instead of building a campaign with lofty goals and hoping that it works, building a campaign with a case statement, goals and objectives as well as the strategies they plan to use to achieve their goals would serve a very useful purpose.

While not quite the same thing as fundraising, in the new world of Crowdfund investing, understanding how to build channel marketing programs to reach decision makers or potential investors in vertical business-to-business market segments will be critical to achieving success.

Once Equity Crowdfunding becomes legal,  an even more important demand for financial services will be needed. Setting up corporate structures and stock plans will be critical in determining whether not professional equity investors will get involved with the Crowdfunding industry.  Issuing various types of stocks and the voting writes associated with them will be a critical factor in long term success for any deal.  In today’s world, many venture capitalists will not touch a “hairy deal,” which means too many people are involved with voting rights to allow them to push the exit strategy in the direction they want it to go.

And how the return on investment for the deal is structured will be very important.   Should it be a debt, revenue sharing, dividend or some of other type of equity investment structure? For example, there are many tax advantages to buying a company with debt, but most people might not consider a debt offering unless they consulted with a seasoned venture capital firm.  Understanding the complicated world of finance and venture capital will be critical to Equity Crowdfunding campaigns as well as the portals offering them.

Overall, experts say that there is around $30 trillion sitting in banking and savings accounts that could possibly be invested in the Equity Crowdfunding industry once it gets underway.  But before the Crowdfunding industry expects to receive even one-half of one-percent of this money, the industry needs to figure out a way to achieve success rates of 50% or better.  A goal of 60% of 75% would be much better, but in the financial markets there never is a “sure thing.”

In conclusion, it would be much more comforting for the SEC to allow 98% of Americans to invest up to $2,000 per year in an industry that offers them at least a 50/50 chance of receiving a  good return on their investment.  The only way to  build more successful Crowdfunding industry is to provide campaign managers with a tool chest of seasoned and experienced marketing, fundraising and financing executives before, during and after their Crowdfunding campaigns.

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