How to raise money from crowds: 11 crowdfunding platforms and examples

by megha on Jun 01, 2010      Category: Economics & Business Tags:

Crowdfunding is one of the more interesting (and important) neologisms of the last few years. It takes the idea of crowdsourcing (getting services delivered by crowds) and applies it to raising money.

Sellaband provides a space for musicians to raise money, having already raised over $3 million for bands who want to record, tour, or promote their music.

ArtistShare has a similar model to SellaBand, providing fans a way to fund recording projects since 2003. 

Film crowdfunding is an active space. The climate change documentary The Age of Stupid was successfully crowdfunded, providing lessons on How to Crowdfund Your Film.

Kiva uses crowdfunding for microfinance, providing loans in developing countries. This is a major success, having lent over $130 million so far. Since it lends to deserving entrepreneurs, once the funds are repaid the original lender can lend to another cause, donate the funds, or withdraw them.

ChipIn is a simple fundraising site which asks for donations for any purpose. It uses widgets to broaden the visibility of fundraising efforts.

My friend Charles Armstrong is using crowdfunding to raise £1 million in equity for his network analysis firm Trampoline Systems. He provides an overview of the process here

Read the complete article at the link above.

 

 

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megha's picture

megha

I am a PhD student at the University of Southern California with research interests in robotics. I did my undergraduate studies from IIT Bombay. Being a member of NGO Post is an attempt at doing something for the community that I am a part of.

Most of my posts here are due to Chandni (htt.....read more

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Arvind Sridharan's picture

Since crowdsourcing is mentioned and NGOPost is more for the Indian audience, I thought this would be a good place to mention Rang De. Rang De, like Kiva facilitates micro-loans for the underprivileged but we are an India centric initiative and we ensure that all our partner NGOs charge an interest rate of 8.5% flat p.a. to our borrowers.

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