Crowd funding needs a ‘logical flip’
What’s wrong with ‘how’ crowd-funding is being leveraged!
I am a true believer in how crowd funding has truly democratised the fund raising process. If we step back 5 years, who would have thought, random people around the world will fund projects proposed by other random people! Thanks to Kickstarter, they have changed the game!
So many interesting ideas out there in the world, which would probably not have been discovered if not for Kickstarter and similar platforms!
But I see a little trouble!
The process right now:
I have a project — I create a cool explainer video (in some cases I have built a prototype) — I start raising money
Something logically seems missing in this chain!
I have a project — I create a cool explainer video — I have tonnes of obstacles which I need help with — I work towards ironing out these challenges — As I become more confident of things worked out for my project — I start the fund raising process!
Here’s a link to an article in Fast Company, which raises a similar question!
Isn’t the above how VC’s write you cheques? I know ideas get funded based on social proof and what not. But the majority actually have to prove traction, cohorts that the product actually is working, before you get the VC to back you!
What’s required is an ecosystem around Kickstarter (pre and post)!
An ecosystem where project creators leverage the wisdom of crowds to iron out issues/ challenges/ problems their projects might face.
As they feel confident of things working out, they apply for fund raising.
And post the fund raising campaign, they still work with people who have helped them overcome obstacles, building a global team of collaborators!
Why?
Coz, before you raise funds, you’d have established relationships with people who helped you iron out challenges. The engagement with these people will be more than simply being a ‘backer with money’ in a project!
Solving the problem!
I am part of hashtaag, the startup which is making project creators overcome project obstacles, leveraging the wisdom of crowds and then start their fund raising process!
