Polinate: A Buzzing Solution to Crowdfunding Models
Why we all need Polinate
Crowdfunding has become a popular source of funding for new ventures over the past couple of years. Many entrepreneurs faced challenges to raise enough capital from conventional financial providers such as banks. Furthermore, the lack of valuable assets to serve as collateral is one of the major challenges investors face with traditional financial providers. However, the initial goal of crowdfunding is to fill such financial gaps.
With Polinate, we seek to address the current challenges of the crowdfunding industry. Leveraging blockchain technology, we aim to design an ecosystem for creators, investors, patrons, and fans to interact on a fair and permissionless infrastructure. We invite you on a journey that brings an optimized experience of crowdfunding for all the participants of the network.
Challenges with Conventional Crowdfunding Platforms
Crowdfunding platforms are relatively fresh in the market and have drawn massive attention from elites and global investors. At the same time, these platforms are encircled by many challenges. Some of these issues are addressed below.
Permissioned gatekeepers, centralized and regulated
Crowdfunding platforms are designed to provide an inclusive system for entrepreneurs from all parts of the world. With that in mind, entrepreneurs have the opportunity to pitch their idea directly to the crowd.
Moreover, crowdfunding should create an effective system for small-scale businesses or other startups to secure funds to help them thrive and create employment opportunities. However, it’s a significant challenge to achieve such policy goals. For the most part, crowdfunding platforms have to meet particular legal requirements to provide an inclusive system.
Many conventional crowdfunding platforms are permissioned with a lack of a clear plan to disqualify creators or companies to display their idea or work. While these gatekeeping functions can help create a good reputation for crowdfunding platforms as reliable investment tools, it suggests listing some companies and disqualifying others, derailing the goal of providing an inclusive system.
High commission fees
Crowdfunding platforms charge a fee on your overall investments. For example, crowdfunding platforms such as Kickstarter charges a 5 percent fee for the capital raised. Also, you will be charged an additional credit card processing fee of 3 percent plus $0.20 for each pledge.
Indiegogo is another crowdfunding platform that offers flexible and fixed campaigns. Indiegogo has helped raise millions of dollars for crowdfunding campaigns in different parts of the world.
Flexible crowdfunding allows the individual in charge of the crowdfunding campaign to keep the raised capital whether the initial goal is achieved or not. On another note, fixed crowdfunding allows the transfer of capital if the initial funding goal is met.
Thus, Indiegogo will charge a 9 percent fee for fixed crowdfunding or 4 percent if the initial goal is not achieved because the capital is refunded. In addition, entrepreneurs are charged a credit card processing fee of between 3–5 percent for both fixed and flexible crowdfunding.
Although flexible crowdfunding allows the individual in charge of the crowdfunding campaign to keep the capital, they are charged a 9 percent fee for the transaction.
Saturated marketplaces do not give enough exposure to your project
On many occasions, a competitive market is considered a convenient feature because it shows the high demand. Nonetheless, many entrepreneurs find it challenging to thrive in a saturated market. Creators and entrepreneurs have to employ better strategies to remain competitive and succeed in the long term.
Saturated marketplaces have a widespread impact on investors, propelling them to grow. However, instead of being complacent, one has to innovate to stay at the top of the game.
How you brand or package the product will determine your general performance in a saturated marketplace. In essence, you’re competing for a top spot with other unique projects. Another essential item to consider is identifying key areas in the market that will reach your target audience.
Several entrepreneurs who fail to capitalize on providing unique and better projects face challenges to meet potential customers. A project has to appear original, with other excellent features to remain competitive and attract many customers.
Polinate: The Next-Gen Crowdfunding Platform
Polinate is the next-gen crowdfunding platform designed to discover, launch, and empower creatives in a decentralized and permissionless architecture. Leveraging blockchain technology and smart contract solutions, Polinate seeks to offer fair funding opportunities to creators. It disrupts the conventional crowdfunding model through three distinctions:
- Permissionless — Unlike the traditional crowdfunding platforms, Polinate offers a permissionless infrastructure for creators to display their ‘art’ and build an audience.
- Financial Freedom — The Polinate platform prioritizes creativity and fair funding opportunities without taking into consideration a creator’s social status, banked, or unbanked. Through its native token utility, it offers unbanked creators with fair opportunities and create value through their work.
- Decentralized — Polinate uses blockchain technology to offer a decentralized platform for creators, investors, patrons, and fans, enabling equal opportunities and support.
Polinate ecosystem is designed to create ample opportunities for creators, fans, and investors to interact in a fair and open way.
Polinate is a next generation crowdfunding platform designed to discover, launch and empower creatives globally in a permissionless way. We give creators their break to get funded by connecting creative projects, investors, fans and patrons.
We are building the backbone of a new global creator economy. It doesn’t matter where you are from, social status, banked or unbanked. If you add value, you benefit.
🐝 Come and join our Hive!