What is Crowdfunding?
Crowdfunding is a new, exciting way for people, companies and organizations to raise funds for their initiatives, for you too. The idea is to raise small amounts of money from a lot of people which sum-up to one big amount, rather than raising funds from 1 bank or investor.
Do I have to be incorporated as a company to post?
Who can start or fund a project?
Anyone with an idea, project, business or invention can apply to post on our site. This fundraising approach is not only ideal for seed capital or for expanding an existing venture, but it is also good for proof of concept or creating a product proto-type as part of a larger venture. This approach can really be used for funding any project or idea that is worthy of support.
Anyone with even $10 to spare can fund a project. All contributions are made online and processed through Wepay (see Backing a Project) and can come from anyone, anywhere in the world.
Do I have to pay the funds back?
No. The money contributed is not a loan or an investment – they are good will contributions made to support the project owner. Backers get rewards as well for their donation so it is a win-win.
Do I have to join as a member to back or start a project?
You do not have to join the site (it’s free) to browse projects but to back someone or to start a project – or to do cool things like follow your favorites ventures – you do need to join us and create a profile – but it just takes a minute! Did we mention it’s FREE?
The reason backers have to sign up (join) to donate is that their contribution has to be trackable – to a specific project (their contribution gets a transaction ID when they are registered) and the entrepreneur has to have at least minimal information about them so they can fulfill their rewards.
Will you sign a Non-Disclosure form?
No, as we aren’t involved with evaluating your venture. It is up to you to decide how much you want to disclose about your idea or business to excite people to back you.
Starting a Project
How do I submit my business or project?
Just click on the Start a Project link here and fill out the submission form. Before you submit your idea or business, be sure you are prepared to do what it takes to run your fundraising campaign. Take it from us – it’s not a “build it and they will come” proposition. You’ll need to have an understanding of how to create a community around your project (via frequent social media updates, videos, email campaigns, etc) and give them a reason to fund you.
Any advice on submissions?
Hava a look on the university for tips.
Is there a fee to post?
No, there is no fee to post. Instead we only charge a success fee on funds raised. You are also responsible for 3rd-party payment processing fees via credit card on donations so please keep these 2 fees in mind when deciding on your funding goal. (Note there may also be additional fees charged by the credit card companies for cross border payments and currency conversion).
Why do projects require a funding goal and deadline?
Every project has a funding goal (a specific dollar amount) and a time limit (__ days) set by the project creator. It motivates the entrepreneur to keep their campaign fresh & energetic and it encourages the backers to take action now and not later.
Under which languages may I submit the project?
What if I exceed my funding goal before my deadline expires?
That's great, you can invest in your venture even more.
What if I don’t reach my funding goal?
There are two courses towards one's dream:
1. "All or nothing"- By choosing this option, the project owner would be required to meet his goal amount within a maximum period of __ days. If he secedes, all the collected funds, minus credit card fees (3-4% of the collected funds) and "all or nothing" fees of __%, will be transferred to you. If he don't, he won't get any funds as backers won't be charged.
2. "Flexible project"- This option is applicable in some cases and enables a project owner to get all the funds collected in his project, even if he won't meet his funding goal. In that case, he'll get all the collected funds minus credit card fees (3-4% of the collected funds) and "all or nothing" fees of __%.
Is there a limit to how much a venture can raise?
No. But take a look on the "Goal Amount" item in the "University".
Backing a Project
Who can back a project?
Anyone, anywhere with a credit card.
Are there fees for me to back a business?
How do I back someone?
To contribute, just select a project and click the “Invest” button. You can then choose the level of funding you’d like to give and select your reward. From there, you will go through the secure credit card checkout process to complete your backing.
Can I pay with cash or check?
What happens when the funding campaign ends?
It depends on the type of the project. If it is an "all or nothing" project, then upon meeting the funding goal, backers will be charged and the funds (minus the fees) will be transferred to the project owner. If it is a flexible project then the backers are charged (when backing the project) and the project owner will receive all the funds, even if the project has not met its goal.
Who is responsible for sending my reward and when will I get it?
Each project owner is responsible for developing and fulfilling the rewards they offer. If you have any questions about the rewards, you can always email the individual directly from their project page. If applicable, be sure to note sizes or colors, or formats required, etc. with any rewards that you are selecting. The rewards will be sent out only AFTER the fundraising campaign is concluded.
Can I ask the entrepreneur for stock instead of a reward?
Not yet. We'll let you know when you would be able to get equity via our platform.
Who creates the rewards to give the backers?
The project owner is responsible for coming up with their rewards. In many cases, it is simply the products the business already creates but they can be any product, service or experience you have access to, the sky is the limit so be as creative as you can. You will want to use a tiered reward system (offering something at $10.00 and $25.00 and $50.00 etc).
Can a reward be limited?
Yes. You have the opportunity to limit the rewards at each pledge level and the number still available will automatically be updated on your page as the rewards are selected by backers. This is particularly useful for one-of-a-kind products or experiences.
Who delivers the rewards and when?
The entrepreneurs who post for funding are responsible for fulfilling the rewards to backers. When calculating your reward levels, as well as your overall campaign goals, keep in mind that you will have some expenses for packaging and mailing the perks to your backers when your fundraising concludes. Remember, you do not send out the rewards until your funding has been successfully concluded as if you do not reach your goal, the contributions will be returned to your backers so the rewards will not be sent out. It is also recommended to give people a time-frame in which you intend to deliver the perks
What can be offered as a reward?
Almost anything. See our university for ideas.
How many reward tiers should I offer?
Having too many tiers is very likely to discourage supporters. People want to help you and give you money so keep it simple – don’t make them stumble through too many choices in order to back you. Anything more than five or six tiers are probably too many.