Questions & Answers

————————————————————

Categorized questions and answers:

About Crowdfunding
Starting Crowdfunding
The Crowd Navigator site
Areas for Crowdfunding
Crowdfunding amounts and costs
Competition to Crowdfunding
Risks with Crowdfunding
The future of Crowdfunding
Other Info from Crowdfunding sites

————————————————————

About Crowdfunding

What is Crowdfunding?
Crowdfunding enables people to invest and contribute monetarily in various denominations to projects they wish to support. Crowdfunding is normally done via an online tool or platform.

How can we spread information about Crowdfunding?
By talking about crowdfunding and latest developments around it, on your Social Media network. Simplified information, videos and infographics can make it easier for amateurs to understand the crowdfunding idea.

Why is Crowdfunding still relatively unknown?
It’s because mainstream media and social media to an extent, have focused more on individual projects rather than exploring the idea behind the concept and its future. Also there’s something in Crowdfunding for everyone, which hasn’t been propagated.

Is there something secret about Crowdfunding?
There is nothing secretive about Crowdfunding, it’s a new funding method with social media at its core.

How can an organisation benefit from Crowdfunding?
Organizations can use it to track innovation, support ideas, and in the process help create user engagement.

 

Jump to the top of the page

————————————————————

Starting Crowdfunding

How do I start a Crowdfunding project?
By registering in the appropriate Crowdfunding website and adding relevant details. We can help you navigate in case of any difficulty.

How can one find the most suitable Crowdfunding method?
By understand their business model and willing to ask for guidance in case of queries or needing clarification.

Can anybody be a member in a Crowdfunding project?
Anyone can be part of a Crowdfunding project by promoting, but only adults can transact.

What do people connect Crowdfunding with?
In different ways, (a) to raise money for business ideas, (b) to fund interesting ideas & receive benefits, (c) to offer expertise, etc.

 

Jump to the top of the page

————————————————————

The Crowd Navigator site

What is new about this Crowdfunding site?
Crowd Navigator aims to simplify crowdfunding information and be in a position to offer all forms of crowdfunding knowledge that a user requests for. These are answers to some of your questions asked.

What is the idea behind this site?
The idea behind CrowdNavigator is to create a platform that in a humble sense tries to bring together all Crowdfunding sites. Since there is so much to choose from on this great ‘Smorgasbord’ we will try to help project creators and funders alike find each other as well as the best model available for their particular need(s). We want to be the Matchmaking site. Challenging but interesting and necessary, and we sure have enough information at our disposal.

Why the Logo?
What better symbol that a ‘compass rose’ to help you navigate through the winds of change. The colors: blue background epitomizes the ‘limitless sky'; green reminiscent of what ‘the world’ used to be and what it can become if we worked together; and the bright yellow star is you, ‘the change-maker’.

Who is Vinay Dora Kandiyanallur?
Crowdfunding knowledge harvester and co-founder at Crowd Navigator, Vinay has both practical experience and theoretical understanding of crowdfunding, having pursued a research project on the topic during his Media Management study. An avid traveler from India, Vinay has lived in China, Southeast Asia, and now in Sweden. He is an advocate of combining capabilities, and that there are no stupid questions. Get more info at LinkedIn

Who is Michael Gawrys?
Webmaster, app developer & physicist. He wants this site to be easy to use on all browsers. It should not matter if you are using a handheld smartphone of any kind, a slate, pad, netbook, laptop or a good old desktop PC. Michael is an independent scientist, inventor and entrepreneur. More info at LinkedIn

 

Jump to the top of the page

————————————————————

Areas for Crowdfunding

Where is it more common to use Crowdfunding?
Most Crowdfunding projects have been in the creative and philanthropic segments, though tech startups and researchers are also increasingly utilizing the concept.

In which areas might Crowdfunding be a better choice?
(a) Creative projects like Theater, Music, Film, Publishing, Design, Photography, (b) Science and Technology, (c) Food, (d) Charity, etc.

Who is using Crowdfunding today?
Mostly early-tech adopters and social media enthusiasts with creative, business and philanthropic ideas, who wish to have the crowd involved in their project pursuit(s).

Jump to the top of the page

————————————————————

Crowdfunding amounts and costs

Which is the organization that actually is earning money from Crowdfunding?
The Crowdfunding company takes a small percentage of the total amount funded, usually around 4-6% of it. The project-owner gets the remaining.

Are there any limits to Crowdfunding when it comes to amounts?
There have been projects like Kickstarter’s Pebble that has received over $10 million in funding. The funding figures are expected to reach greater heights.
Whatever you earn within the timeframe set, you get it, ofcourse with the administrative fee deducted.

Jump to the top of the page

————————————————————

Competition to Crowdfunding

Does Crowdfunding have opponents?
Crowdfunding in itself has options, as listed in the 4 types. Other than that one may take the conventional path of reaching out to VCs, public funds and bank loans to fund their project ideas.

What is the main difference between Crowdfunding and other funding forms? Crowdfunding is more social – that is anyone can be a funder. Other forms of funding usually require the funders to be registered with financial entities.

Why is Crowdfunding better than other funding forms?
Several things, (a) can create more consumers, (b) is collaborate, (c) has less paperwork, etc.

Why is Crowdfunding a good alternative to other funding?
As it is easier to fund projects and receive funds.

Jump to the top of the page

————————————————————

Risks with Crowdfunding

Can Crowdfunding be dangerous?
Crowdfunding is safe, especially since most sites if not all are accredited. Also most Crowdfunding sites review their projects and only then take them live. As an aggregator site, despite our due diligence, we may not be responsible for activities in other sites.

Who will not benefit from Crowdfunding?
Those unwilling to explore new funding opportunities.

Is it always legal to use Crowdfunding?
In some countries like the UK and Canada Equity Crowdfunding is legal, in a few countries this form of Crowdfunding is being worked out to be made legal. Other types of Crowdfunding are possible in most parts of the world.

Jump to the top of the page

————————————————————

The future of Crowdfunding

Does Crowdfunding have a future?
Crowdfunding is the future – its capabilities include helping realize cutting-edge innovation and job-creation. Anyone can now become an entrepreneur and or fund a venture.

Who will likely be using Crowdfunding in the future?
Those on the web with ideas they wish to realize, as well as those who help them achieve it by contributing.

Jump to the top of the page

————————————————————

Other Info from Crowdfunding sites

Why do people back projects?
A lot of backers are rallying around their friends’ projects. Some are supporting people they’ve long admired. Many are just inspired by a new idea. Others are inspired by a project’s rewards — a copy of what’s being made, a limited edition, or a custom experience related to the project.
Backing a project is more than just giving someone money, it’s supporting their dream to create something that they want to see exist in the world.
(source: Kickstarter.com)

How do I know a project creator is who they claim they are?
Perhaps you know the project creator, or you heard about the project from a trusted source.
Maybe they have a first-person video. That would be hard to fake. “Is it really U2?!” Well, it is if Bono’s talking about the project.
Still not sure? Look for the creator bio section on the project page. Are they Facebook Connected? Do they provide links for further verification? The web is an invaluable resource for learning more about a person.
At the end of the day, use your internet street smarts.
(source: Kickstarter.com)

Is anyone in the world able to create a campaign?
Indiegogo is an international platform, so anyone with a bank account can start a campaign. We do not, however, allow campaigns from countries on the U.S. OFAC sanctions list.
(source: Indiegogo.com)

What if I don’t reach my funding goal?
If your campaign is set up as Flexible Funding, you will be able to keep the funds you raise, even if you don’t meet your goal. If your campaign is set up as Fixed Funding, all contributions will be returned to your funders if you do not meet your goal. Flexible Funding campaigns that meet their goal are only charged 4% as our platform fee, whereas campaigns that do not meet their goal are charged 9%.
(source: Indiegogo.com)

Are contributions tax-deductible?
Most contributions are not tax-deductible. Campaigns may offer tax deductions on contributions only if they are set up as a 501©(3) non-profit and only receive funds into their non-profit PayPal account. For more information on how to set up your campaign to offer tax deductions, see our article: PayPal Set-Up for Nonprofits.
(source: Indiegogo.com)

Are financial goals and time limits required?
Yes. Every project must have a financial goal and time limit. Financial goals can be any whole dollar amount. Time limits can range between 15 — 90 days.
(source: Rockethub.com)

Can a project be edited after launching?
Yes, you can edit the following content after launching:
• Project description
• Video and images
• Rewards (add new ones)
• Your profile
The only things that cannot be edited after launch are:
• The funding goal
• The project deadline
• Rewards that have already been established.
(source: Rockethub.com)

Can projects raise more money than their financial goal?
Yes. There is no limit to the amount of money a project can raise.
(source: Rockethub.com)

How to shoot yourself (with a camera)
(source: Sponsume.com)

Jump to the top of the page

 

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>