For some people, crowdfunding is just a way to seek funds for a product or idea, but it means more than just that to me. There is sort of a magic on it. I’ve been lucky enough to experience it as a backer, and also as a creator, and the following statements are based on my experience.
Years ago one needed big investors with big egos; Big Banks with huge interests. Years ago individuals struggled to find the way to make this idea turn to something. There are no barriers anymore. You can do whatever, as far as there is enough people who understand it, and wants that to happen.
“Perhaps crowdfunding can help restore the magic by freeing entrepreneurship from the taint of Big Finance” – Reihan Salam
“Get rid of banks and build up a modern financial world” – Rainer Lenz
I’ve been thinking about why I love crowdfunding so much, and I discovered that it has many components that, according to my values, should rule the world.
What’s crowdfunding about?
It’s all about COLLABORATION.
You need people to bring your project to life. A group of people joining for a common cause, to get something that they all love and want.
There are few people who are exceptional and they can make great things by themselves. Ordinary people, we need other people to make amazing things. Crowdfunding is the path where the joint of ordinary people can make exceptional things to happen.
It’s all about TRUST.
When people decide to give money for your project, they are trusting on you. Few things in this world are driven by trust. You trust a friend, your family, but you’ll never trust a stranger.
Let’s imagine that a stranger ask you 10€ on the street, promising to give them back in 5 minutes. Few people would say yes. That’s what every backer is doing in crowdfunding, trusting someone, usually giving a lot more money than 10€, in exchange of a promise of a great product.
I usually say that when you raise, let’s say, 10.000€ for a project, you don’t only get money, you’ve got the faith of X people with a value of 10.000€. And that’s an important hint, because when you finish the campaign you have the money, but all the contributors are still waiting for your promise.
It’s all about TEAMWORK.
It happened a few times to me that someone backing a project suggests me how to improve the product to make it, basically, better. Usually it’s not a big deal, it’s something you can make by adding few € to your budget. Of course, I listen to them and I take action, I change something.
It’s not only about the money they give you, but they are helping you. They are part of your team and they deserve a special attention. They do it because they want a better reward, but you also want to make it the best because it’s your thing. And that drives me to the next point.
It’s all about HOPE.
Each project is the dream of the creator, probably something that he wants to do for long, and crowdfunding is the opportunity to make. It is also the hope of the contributor, who really wants that to happen, otherwise he wouldn’t support it. Crowdfunding helped raised funds and make projects that are the dream of many creative people with few resources, and this is awesome!
And, it’s all about COMPROMISE.
Once again, it is a compromise for both sides, a give-and-take. You as a creator, compromise with your backers by delivering a good product; a product that fits their expectations, those expectations that you created during the campaign.
Don’t promise things you cannot give them, you compromise and you must stick with it.
Few friends believe that I am sort of a dreamer, but seriously TRUST, COLLABORATION, COMPROMISE, TEAMWORK and HOPE, are a few values easily forgotten in this world, and we should keep and expand them, whatever the way we do it.
I argue with people who treat contributors as customers, creators as providers, and who measure the success of a campaign by € or $ raised.
It’s all about people and about emotions, and we cannot expect to governance crowdfunding as a normal business based on current rules.
You may think that I am a fool, but believe me. It’s happening, it’s getting bigger and it will keep on growing. World is changing. There’s a bit of magic on it.
It makes me feel better to know that there is other people who believe on it the way I do, who take part of it, and who contribute to make it bigger and better.
Long Live Crowdfunding!