Are you looking for money to fund your art project? Do you have a great idea for a creative venture but don't have the bankroll to get it going?
You may have reached out to friends and family, but right now in these tough economic times they may be unable to help.
So is this the end of your great art idea?
Not. Just hold onto your money clip because help is on the way.
Social media is changing more than the way we market and communicate… It’s changing the way we raise capital.
Crowdfunding websites are popping up that connect entrepreneurs with investors, producers with patrons, and causes with contributors.
What is crowdfunding?
Crowdfunding builds upon the idea of crowdsourcing: “the act of outsourcing tasks, traditionally performed by an employee or contractor, to an undefined, large group of people or community (a “crowd”), through an open call.” (Wikipedia)
Crowdfunding pulls together a community—tightly knit or disparate—to fund a project, business or cause, usually via the Internet.
How does it work?
Although the rules differ from site to site, generally people (or businesses or charities) pitch an idea, set a fundraising goal and set a deadline for raising funds.
Potential patrons can review the pitches and decide if there are any they’d like to support. On most crowdfunding sites, people are not investing in the project or business; rather, they are funding it. They are rewarded if the project comes to fruition, but don’t end up owning any part of the business or project.
This is in part due to U.S. regulations currently under review by the SEC, so this may change in the near future. However, different sites have different rules, especially those based outside the U.S., so make sure you review the terms and conditions carefully!
To launch your own project, I’ll focus on Kickstarter—one of the most popular crowdfunding sites—as an example.
You start with a pitch: you describe your project, specify what rewards patrons will receive if the fundraising is successful and create a funding goal and a timeline.
If you don’t reach your funding goal by the deadline, no money changes hands. As Kickstarter says, this “protects everyone involved. Creators aren’t expected to develop their project without necessary funds, and it allows anyone to test concepts without risk.”
Pledges are made with a credit card; if you’re backing a project, your card won’t be charged until the project is successfully funded.
The 2 best crowdfunding sites for artists and creative ventures are:
Have you financed a project through crowdfunding, or are you planning to do so in the near future? If so, please share the details (and links) below. If you have your own tips and tricks not mentioned above, we’d love to hear about those, too. Leave your questions and comments in the box below.