CROWDFUNDING WORLDWIDE: Four fictional funding campaigns, drawn from real cases across the developing world, represent the main types of crowdfunding campaigns.
C rowdfunding may be in its infancy, but it is already standing alone. This novel means of direct financing, which pools small sums of money from multiple investors, started gaining traction in the world’s wealthiest nations after the 2008 financial crisis. Since then the runaway success of “fintech” innovations has turned it into a platform in its own right, with a global market volume of US$418 billion in 2017, according to the University of Cambridge. Driven by digitalization and social networks, crowdfunding typically falls into four categories: • Donations involve charitable contributions for individual or civic needs, • Rewards promise a service or good to the backers of a successful project, • Equity brings investors into a for-profit enterprise, and • Debt provides a stake in borrowers’ needs in return for repayment and interest. Although platforms such as Kickstarter, Indiegogo and GoFundMe are well-known in the USA and Europe, capital financing regulations are allowing space for a thriving landscape of crowdsourcing startups at national and regional levels to fill a funding gap used by small businesses, entrepreneurs
DONATIONS Felipe is a 53-year-old Mexican tailor who owns a small sewing and alterations shop in Zapopan, the country’s eighth largest city. He is trying to raise capital to buy a more advanced sewing machine. Unable to get financing from his local bank he started a crowdfunding campaign
with testimonials from customers and the community he serves. He will be using the funds received and will update on the progress of his business to the donors in a WhatsApp group setup via the crowdfunding platform.
Crowdfunding platforms in Latin America and the Caribbean: • Vaki: https://vaki.co • Kickante: https://www.kickante.com.br • ideame: https://www.idea.me
and individuals everywhere. See the infographic for thematic case studies from all around the world.
REWARDS The Ranong Province Elephant Sanctuary in Thailand is raising THB 850,000 (US$24,500) in funds to improve facilities for its overnight workers. The small 10-person non-profit has created a rewards system that includes limited edition handcrafted elephant clay figurines donated by a distinguished local artist for the first 20 people that contribute 1,000 THB or more. Lower tiers get access to a live webcam for a year to enjoy exclusive sights of the park and custom designed stickers.
Crowdfunding platforms in Asia: • Weeboon: https://www.weeboon.com • Crowdera: https://www.gocrowdera.com • Ketto: https://www.ketto.org
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