What does crowdfunding actually mean? What happens when I donate?
Dear fans,
I got a few questions on the concept of crowdfunding, how it works and what to expect.
What does crowdfunding mean?
Until recently, financing a business or project involved asking a few people for large sums of money. Crowdfunding stands for raising finance ("to fund") by asking a large number of people ("crowd") each for a small amount of money. People invest simply because they believe in the cause. Usually a supporter receives a reward in exchange for a donation. Donors might also have a social or personal motivation for putting their money in and expect nothing back, except perhaps to feel good about helping the project.
I have seen organisations, teams and individuals to successfully raise money to start a social business or a private initiative that otherwise probably would not have been realised. In the music scene, artists often crowdfund within their a fanbase e.g. to produce of a new CD. A very nice example is the campaign by my friend Sebastian Block, who successfully funded his album "Der Mond ist Schuld" (https://www.startnext.com/der-mond-ist-schuld).
What happens if the full amount is not met?
If at the end of the campaign the estimated amount of money is not reached, all supporters will get their money back. The project starter (me in this case) will not get a cent but there are also no costs involved.
If the campaign is to be successful and the money raised is enough to meet the estimated amount, I will receive this shortly after the campaign. However, some of the money will be deducted beforehand by Startnext as a settlement for money transfer costs as a result of individual donations.
Please allow me to thank all of you who have supported already and to invite those who haven't done so to support my project now. Your help is needed still.
It is wonderful to be backed up by so many kind cooperative and generous friends!
Best, Hanneke
