The rise of crowdfunding
Crowdfunding is big business – and it’s achieved some amazing things
MAYBE you’re longing to send your daughter to her matric dance but you simply don’t have the cash to kit her out in the gown of her dreams. Perhaps you recently had a medical procedure and you’re drowning in a bucket full of bills. Or maybe your son’s just been accepted to medical school but there’s no way you can afford to send him.
What to do? Well, go crowdfunding of course.
Gone are the days when a loan from the bank, an application for a bursary or a handout from a faithful friend or relative were your only options. These days there’s crowdfunding – and the sky’s the limit. Reasons for starting a crowdfund can range from the heartrending and worthy to the downright bizarre.
Case in point: a young woman recently started a GoFundMe page after she popped a pimple – and got a lot more than she bargained for.
Katie Wright, who’s from Texas in the US, initially thought the pus-filled cyst on her right eyebrow was an ordinary zit. Little did she know it was the result of a nasty bacterial infection she’d picked up after using a dirty eyebrow pencil.
Not realising the pimple could be life-threatening, she squeezed it and almost immediately had a violent reaction.
“My face grew hot and swollen, then disfigured very quickly, with an oozing, open wound that kept getting bigger,” she wrote on her GoFundMe page.
She was rushed to hospital where she was warned she might lose her sight – or even her life.
Doctors managed to save the day but Katie was left with soaring medical bills, which prompted her to go the crowdfunding route.
Her goal was to reach $4 200 (about R54 600), and within days people had already started coughing up.
It’s not surprising people are opting for what seems like the easy way out when they’re in a tight spot – you can coin cash for literally anything.
All you need is a crowd.
HOW IT ALL STARTED
Online crowdfunding first gained popularity in the art and music world. In 1997 fans of British rock band Marillion managed to raise $60 000 (then R300 000) in an online campaign to endorse the band’s United States tour.
That year independent writer and director Mark Tapio Kines created a website to raise funds to finish his film Foreign Correspondents.
Two years later he’d raised more than $125 000 (then R750 000) and was able to complete the production of his first movie.
HIGHEST-GROSSING CAMPAIGN
Crowdfunding is a billion-dollar industry – literally.
In 2015 it was estimated $34 billion (then R527 billion) was made in crowd-
funding across the world.
The highest-grossing crowdfunding project to date is one started by Chris Roberts, the founder of Cloud Imperium Games.
The company’s first product is Star Citizen, a major multiplayer online game which is being created with donations from the public.
Roberts’ campaign smashed the previous record of nearly $21 million (then R178,5 million) – which was set by Pebble smartwatch in 2012 – when it raked in more than $156 million (R1,3 billion in 2015).
A release date for the game has yet to be set.
A DUMMY’S GUIDE: HOW TO START A CROWDFUNDING PAGE
In 2012 there were an estimated 700-plus online crowdfunding websites worldwide.
With so many public donation platforms available, it’s not surprising crowdfunding is being seen as something of a budding economy.
Virtually anyone can sign up. Here’s how:
Determine your project. Decide what it is you intend to raise funds for. Your project should have a clear objective, a monetary target and a time limit.
Preparation is key. To have a site host your donation page, you’ll need to pitch your project. This is done through submission of a short video, explaining what your mission is, what the money will be used for and why you believe it will make a difference. Above all else, your pitch needs to be an attention-grabber. Pick a platform. Once you’ve established what it is you’re raising money for and you’ve created your video pitch, choose a website to submit it to. Sign up for that site but make sure you read the terms and conditions attached to each platform carefully. For example, GoFundMe, the world’s biggest crowdfunding platform, requires 5% of every donation you receive. Other sites have an all-ornothing policy, where you forfeit all money raised if you don’t reach your target within the predetermined time. Get started! Tell friends and family about your crowdfunding page and then keep your fingers crossed that the donations roll in. Thank each person for their contribution and continue keeping them updated as things unfold. That way your donors feel involved.
HEARTRENDING: ANGIE’S CANCER BATTLE
More than $12 000 (R186 000) was raised to assist Angie Reynolds, from Nashville in Tennessee, with her medical bills.
Tracy Bidochka used Fundly to raise the money to help her ailing friend.
Angie had been in remission from cancer for 12 years when the illness returned. Sadly, she couldn’t beat the deadly disease the second time round and died in May 2015 at the age of 44.
HELP THE HALEYS HAVE A BABY!
Sean and Jessica Haley were high school sweethearts but after they married their dreams of a family were dashed when doctors gave Jessica a 1% chance of falling pregnant naturally. So the Haleys turned to crowdfunding to help them raise money for IVF.
The pair raised $8 050 (R64 400), completely exceeding their initial goal of $5 000 (R40 000).
The IVF was a success and months after they closed their online campaign page, Jessica conceived.
In April 2012 she gave birth to a healthy little boy, Landon.