Crowdfunding In The Sub-Continent
Apologies for being very silent recently, but the new year started with some interesting things...but you guys aren't interested in that! Anyways, happy belated "Happy New Year"! Lots of things going on in the crowdfunding world with an introduction to cryptocurrency with our little industry! Also lots of new innovations in the pipeline from different creators out there. One place where crowdfunding is taking off is in the subcontinent! Our roving researcher went out to do some digging into rewards crowdfunding in the land of curry and samosas (yes we're a bunch of foodies here at LaunchMii!) and she came up with the following article. Please enjoy and leave comments!
Crowdfunding has been very popular in the United States and Western Europe for a long time, but it has taken a little longer for online crowdfunding to take off in India. Traditionally, fundraising has played a large part in the culture, as many historical sites (like places of worship) were built using donations. However, there has been a cultural barrier to spending money online, where many did not trust online transactions. This has prevented online crowdfunding platforms from being embraced the same way that they were embraced in western countries. Companies are now required to donate 2% of their profits to corporate social responsibilities, which will help drive money towards crowdfunding. Additionally, rewards based crowdfunding will provide the incentive that the large middle class needs to push them towards internet based crowdfunding.
Wishberry is one of the most well known of the rewards based crowdfunding sites in India. With over 400 projects funded, they have raised over 183 million USD for different projects. Rewards based means that in exchange for their donation, contributors receive early access, special passes, or other non-monetary rewards. Wishberry is an all or none system, which means that if the funds aren’t raised within 60 days, the money is returned to the contributors. Despite this, Wishberry boasts a funding of 70% of their projects, likely in part to the marketing and social media expertise that the company has available for their fundraisers.
FuelADream is another reward based crowdfunding site in India. It works very similarly to Wishberry, with the exception that those requesting funding can choose all or none, or choose to keep whatever they earn. If all or none is chosen then the funds get returned to the contributors. FuelADream also focuses heavily on arts and on community responsibility, featuring crowdfunding opportunities like raising money to remove cataracts for lower class elderly people. FuelADream funded almost 100 projects in just the first twelve months. Boasting a marketing and sales team that is specifically designed to help put together the online pitch, FuelADream is an effective website that is quickly growing in influence in India.
Catapoolt is another of the rewards based sites in India, and unlike the others focuses heavily on arts and entertainment. Currently there are a lot of video games in development on this site, which gives funders an opportunity for early access (and in some cases funders can give feedback prior to the game being released.) Catapoolt offers something that no one else does, a storefront opportunity for their customers. If you want your product out where people can see it, then Catapoolt is the company you want to work with. Their 300,000 retail outlets are innovative and offer what no one else does, a hands-on look at your product. Founded in 2013, they raised over $153 million dollars in their first three years.
Crowdfunding is a great way to put your money towards projects that are meaningful for you.Till next time...happy crowdfunding!!!
The LaunchMii Team Blogger!
Image provided courtesy of storyblocks.com
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