Welcome to the exciting world of Crowdfunding with iPledg.
Crowdfunding is essentially the raising of monies from the crowd (family, friends, and fans). Crowdfunding describes the collective cooperation, attention and trust by people who network, usually via the Internet, in order to support efforts initiated by other people or organisations.
Crowdfunding is growing at a rapid rate with attention from both commercial and social entrepreneurs, charities and community groups and those in the artistic and creative space now that social media, online communities and micropayment technology make it straightforward to engage and secure pledges from a group of potentially interested supporters at very low cost.
Crowdfunding is rapidly emerging as an exciting form of commerce, leveraging off the growth of the internet and social media.
Crowdfunding is not a “new to world” concept, but something successfully executed and operating internationally.
There are a number of different Crowdfunding models including pledge, equity, or loan models. Real Estate crowdfunding is the newest form being promoted.
iPledg is a crowd funding model using a PLEDGE funding model. A pledge is not an investment, so is not bound or encumbered by traditional legislation around funding and investments. A pledge on iPledg is simply a pledge of financial support for a project.
Essentially a Project Creator creates a project online and indicates how much funding is required to complete the project and in what timeframe they wish to raise those funds (usually 30 – 120 days). Anyone posting a project has a structure to invite family, friends, fans and broader networks to offer support. Visitors to the website may then pledge money to projects they like via an automated online payments process, and for which they are offered a reward.
Only when projects meet their funding targets within the specified time frame (commonly referred to as ‘all-or-nothing’) will the monies be passed onto the Project Creator.
When posting a project, Project Creators may offer rewards, which may not be paid for out of the funds raised. The Project Supporters then receive rewards from the Project Creators once funding targets are realised in the funding timeframe. Should the minimum funding target not be reached in the specified timeframe, the Project Supporters do not part with their money and the Project Creator then has the opportunity to review their pitch and start again.
Apart from a wonderful way for Project Creators to raise the capital they require for their initiatives, a successfully run Crowdfunding campaign often provides social proof for a Project Creator’s concept, showing that more than just the Project Creator believes the initiative to be a good idea. It allows Project Creators to raise funds without going into debt or giving up equity, whilst presenting the idea to (potentially) a worldwide audience. It allows Project Creators to gain initial funding which can be hard to get from traditional sources.