Raising Funding through Crowdfunding & Other Sources
Our Preferred source of Raising Funds
This article covers a range of revenue streams. Our funding ideas move from business profits where all the profits are re-introduced back into Commonground to different forms of Crowdsourcing, Banging the Tin, sponsored events, getting investments to government/council type funds to promote specific projects. We also want to run funding events with other like minded instutions.
Our funding programme also varies depending on what part of what of Commonground needs funding. Fundng is needed to build and create the cafe, as well as form the wide range and type of things we do at Commonground that are used have been illustrated here.
One of the biggest problems to getting a not for profit business up and running is funding and capital. While we have a high five figure number to invest, it won’t go all the way in terms of getting what we want to achieve to a meaningful level, we still need some investment.
It will be a slow start.
Our first stage aim is to create our ReWilding Cafe together with our kitchen garden and four to six acre agroforestry space. With our re-purposing and building skills creating the cafe is not as expensive as you may think. We are looking for money mostly to employ people to get involved in the business.
This article is all about how we have the processes in place to create our fundng platform. If you want to see how the actual programme is working. As a fluid essay it tends to change and fluctuate as time moves along
There are many individuals and groups that looking to do good in the world or want there money to mean something in the sense on making a real different its these types that we are crowdsourcing that we are creating our crowdfunding platforms. This attitude is core for Commonground. We want to create the idea that value and purpose can have real meaning.
Today crowdfunding on the rise, where in the past it used to be a novel way to raise money it is now much normal, often necessary part of starting a business. It also has a great bebefit for Comonground as the platform we create can work to promote what we do as well as raise the important funds we need.
In 2015, crowdfunding supplied more than $34 million to businesses, according to a Crowdfunding Industry 2015 report. The reality is that, when comparing the amount of capital raised, crowdfunding is poised to overtake venture capital.
But along with the popularity of crowdfunding comes increased competition for eyeballs and dollars. Campaign success rates in 2015 ranged from 31% at the high end (Kickstarter) down to just 11% (RocketHub), according to market research from the London-based firm The Crowdfunding Centre. To successfully raise funds, you are planning for three to six months of hard work before we launch.
Below we have laid out how, in basic terms, we have gone about understanding how to create a range of platforms that we can use to create our own platform.
At the end we have three essays that delve into three separate platforms to raise money for three primary projects we need to create the the base or fundamental base that will give Commonground its identity,
Deciding What Platform Work Best with Commonground’s variety of projects it runs.
For Commonground deciding on the best type of Crowdfunding campaign we need we have found is specific to the type of project we want to develop. There tends to be five basic models of crowdfunding that people use. For instance we would be looking for a different funding stream to create a cafe than we would for our guerilla gardening or our community projects.
We are currently in the era of innovation. The digital landscape has paved the way for anyone to turn unique ideas into reality, solve seemingly insurmountable problems, or simply design a t-shirt! This level of variety allows Commonground to be able to target specific groups through varied types of funding. Below are some crowdfunding platforms that we can use
Reward-Based Crowdfunding – Reward-based crowdfunding is one of the most popular forms among startups and entrepreneurs. As the name suggests, this model involves giving backers a reward in return for their contribution. The reward typically correlates with the amount donated and can range from a simple thank you note to an early bird special of the product being developed. It’s a fantastic way to not only raise funds but also to create early adopters and brand ambassadors for your product or service.
Project Type – Big Projects, Like Buying our 50 to 100. Acre farm or or Re-Wilding Cafe
Platforms – like Kickstarter and Indiegogo are pioneers of this model.
Donation-Based Crowdfunding – If your project is geared towards a social, personal, or non-profit cause, donation-based crowdfunding might be your perfect fit. Here, contributors donate money to your project purely to support your cause without expecting any financial or tangible returns. This crowdfunding type is a staple for charity, community projects, disaster relief, medical bills, and other philanthropic endeavours.
Project Type – Bio-Diversity and Community Projects.
Platforms – GoFundMe is a popular platform for this type of funding
Equity-Based Crowdfunding – Equity-based crowdfunding is the virtual ‘Dragon’s Den’ for entrepreneurs and startups. Instead of providing a product or a thank you note as a reward this type involves giving away a small piece of the equity pie in your company to the investors. The contributors become shareholders and stand to profit from the company’s success. The problem for us is this type of crowdfunding is that all of us who work in the business. This could cause trouble if an investor wants more of a percentage than what the group will be. We may not be able to share equally.
Project Type – Building the Cafe and for larger projects.
Platforms – Websites like AngelList, Crowdcube, and Seedrs
Note – this is a similar type of crowdfunding, which is also known as Peer-to-Peer (P2P) lending or crowd-lending, debt-based crowdfunding operates much like a traditional loan but without the involvement of a conventional bank. Individuals lend money to a business and receive back their investment back plus interest.
Royalty-Based Crowdfunding – A lesser-known but increasingly popular form of crowdfunding is the royalty-based model. In this case, backers receive a percentage of the revenue from the project they help fund. This arrangement is especially appealing for creative projects such as music albums, films, or video games, where there’s potential for ongoing revenue once the project is completed. Royalty-based crowdfunding can be a win-win for creators and backers alike, providing ongoing incentives for both parties.
Project Type – Find things to Make, Create & Sell
Summary – The link below also shows other sources of funding that we can use instead of just Crowdfunding like the lottery, loans or venture capital. However Crowdfunding, like our use of Crowdsourcing to access varying types of skills and people is preferred because it can reach more people and it creates a sort of social structure that all types can get involved in.
Join the movement! Reimagine communities, integrate nature, and build a sustainable future with us.
Crowdfunding for Commonground
Once you have decided on the type of crowdfunding. Here are some ways we use to develop any Crowdfunding aims we have in mind.
Study successful campaigns – For us at FROG inspiration for doing crowdfunding comes from Amanda Palmer crowdfunding campaign to raise money to launch her first independent album.
Front-load your campaign – ”Campaigns that get more than 30% of funding in the first week are more likely to succeed,” reports Fundable. This means that you need to have backers in place before your campaign goes live. Whether it’s family members, previous business partners, or a select members of your entrepreneurial inner circle, gain a commitment prior to launch and follow up personally to ensure they follow through. Many businesses privately launch their campaigns to a select group of likely backers and only open their campaign to the public when they have reached their 30% funding goal.
Tell a great story – Facts are great (and necessary), but not necessarily inspiring. If you want backers to open their wallets, you need to connect with them on a deeper level by sharing a great story. What problem does your product or campaign solve?
How will it help your reader, or someone you engage them to care about? Why is it special? Make your potential backers eager to open their wallets to be part of that story.
Make a great video – Crowdfunding platform Indiegogo reports campaigns with pitch videos raise four times as much money as those without. It needs to be well-edited and scored, well-paced, and inspiring. Think of it as a visual representation of the great story you’re telling, and no matter how awesome the story is, poor production will be distracting. An unprofessional video may say that you’re not serious about your business.
Be detailed and specific – Remember, your goal isn’t about “Giving money!”, but about inviting people to help you fulfil our goals. Set your goals as low as possible for each campaign. With some crowdfunding platforms, you won’t receive any money if your campaign isn’t successful, so save your dreams of profits for down the road. Your numbers, your goals need to be concrete, realistic, and focused on solving the single stated problem that your backers care about.
Spread the word – Use every method available to get news of your campaign out. Social media posts for your followers, sponsored updates (paid ads on social media), and email blasts are three great ways to get started.
You need to build interest before the campaign starts, so that people are ready to jump in when you launch, and post or email regular updates leading up to a strong finish. Each update should include a strong call to action to encourage the reader to take the next step, whether it’s to share the post, comment.
Communicate – Don’t neglect to communicate with backers on the campaign platform itself. Once people have committed their money, keep them in the loop and keep them excited by sharing updates, announcements, and milestones about campaign progress, as well as replying to comments, answering questions, thanking donors, and sharing personal messages from the team. Indiegogo reports that successful campaigns on their platform post at least four updates and add 12 new perks after the launch, which often entices backers to commit more funds. Remember to share information about fulfilling the actual goals.
