Digital Backyards Forum “Crowdfunding”: Workshop

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  • “Crowdfunding”: Workshop Oct.19th

    Two different ways of Crowdfunding exist:

    1. Kickstarter-System

    * Kickstarter: Like “Cheerleading”
    * Pre-ordering
    * Creation of something that does not exist yet
    * most famous example (USA)
    * idea of kickstarter: to get a lot of money
    * if I can’t reach the amount the crowd gets the money back

    2. Flattr-System

    * flattr: Like “applauding“
    * support of something that already exist
    * Payment for what you will see and more content
    * create a change because people pay for free content and not for a brand
    * People using flattr give a monthly budget and they distribute the money by pressing the flattr button
    * new flattr idea: connect consumption and payment, e.g. if watching a Youtube Video until the end, it will be flattered
    * Favorite a tweet and it will be flattered
    * Idea beyond: What does “to favorite a Tweet” or click “I Like” mean? In the end it doesn’t mean or change anything

    First Conclusion

    * These two models won’t be the only ones forever
    * Crowdfunding is still developing itself
    * Why can´t we take the kickstarter concept and combine it with something new?
    * Normally the kickstarter concept is only be transferred into another country without any further development
    * consequence: it fails

    Reasons for failing:

    * Unawareness for crowdfunding
    * The need is not obvious
    * no legal system for crowdfunding
    * country is too small
    * mistrust in the use of the money
    * Problems of transferring money
    * availability of other sources of funding in the country
    * the need is not obvious or no need exists
    * Project is just to complicate to explain it for the whole crowd
    * While crowdfunding transparence is extremely important we cannot just publish numbers, got to visualizes them
    * tools for transparency are necessary
    * In future: industries that visualize other people´s crwodfunding projects?
    * other important factor: feedback and accountability

    Motivation to donate:

    * People want to be part of a cool project
    * They get an exclusive benefit
    * The first donates are friends and family; Personal attachment and motivation
    * Cheerleading excitement: supporting something that doesn´t exist yet
    * owning a part of something
    * define yourself by support something
    * bragging and karma

    Examples of crowdfunding projects:

    Media Funders:

    * Still in conception
    * Combination of a Crowdfunding and Crowdsourcing platform for journalists
    * with tools to upload data and information for specific projects
    * After successful funding the crowd you can use the content for free
    * Media Funders will control the knowledge of the journalists, their background and the topic
    * It´s a risk: You never know whether a journalist will be successful in his investigations

    Crowdfunding is always a risk: What will you get in the end as a supporter?
    But: Saving investments doesn’t turn the world around!

    Media defender

    * Adopt a journalist helping them to work furthermore

    Wikipedia

    * to get their service running
    * They do crowdfunding and crowdsourcing & got millions of dollars only with a banner
    * But Wikipedia only explains that it needs money – the crowd doesn´t know what for, why or got any feedback if crowdfunding was successful
    * maybe because they get more money than they need?

    Funding for Whistleblowers
    * very hard to get money to whistleblowers, also very dangerous e.g. in Eastern Europe
    * Have to give them physical money

    Future:

    * Connect the idea of kickstarter and flattr (“Cheerleading” with “applauding”)
    * Connect crowdfunding with something else: Have to connect crowdfunfing and something else (drummermachine: connect them with a company that makes drummers)
    * Splitting projects: giving skills and money
    * Fund networking; need of drums and crowd connects you with a company
    * (Local) specification: specialized services that fits certain purposes

    Presentation of group results

    Presentation

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