“Crowdfunding”: Workshop

“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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