Exactly what it says on the tin: it’s funding for great ideas from a crowd of people who back those ideas. There’s a specific time frame for funding targets to be reached.
Each member of the crowd gives a little, then tells their friends, who give a bit more, and so on until it all adds up; the initial idea becomes a reality, and the crowd of people who made it happen all get something back.
Crowd-funding has been used with great success to fund everything from community projects to big budget feature films – the possibilities are endless!
At Buzzbnk, crowd-funding works a bit like this:
Step 1: The Buzzbnk team works with each venture to understand its funding needs and fundraising targets, what the money will be used for, and how results will be measured in terms of social and financial impact.
Step 2: Each venture devises a variety of backer levels, and benefits in return for backers’ support. These benefits can be unique events, goods and services, money-can’t-buy experiences or an illustration of the social impact their funds will achieve. The type of benefit that a backer receives corresponds with the amount of money they give.
Step 3: Crowdfunding can begin! The venture defines a target time period within which to raise funds. If the financial target is not met within that timeframe, funds pledged by backers are returned. Why is this important? This ensures that backers only commit their funds towards projects that have sufficient financial backing from the crowd.
This way, backers get more than just a warm glow when they support a Buzzbnk venture. They have a sense of ownership and involvement with the project, not to mention events, goodies and benefits to enjoy!