Crowdfunding for Innovation
FundaGeek tries to define a new crowdfunding paradigm: Putting the classical reward-based fundingframe on innovative profit-seeking projects. For project owners the major benefit is that backers should not expect to be paid back or receive any ownership interest in the project. FundaGeek about "How it Works for Backers":
If you are looking for a project to support, simply create a FundaGeek member account and search our project catalog for interesting projects that match your areas of interest. You can search by category and/or keyword. Once you find a project that you may be interested in backing, you should review the project profile carefully to make sure it’s right for you. We encourage you to verify everything for yourself so you feel confident the project is viable. If you decide to back the project, simply click on the Pledge button on the Project Detail page to make your payment. You will not be charged until the end of the campaign period. You can back as many projects as you wish. The project owner will contact you about reward fulfillment.
Our Question: Why do people support projects?
FundaGeek's Answer: We believe people support projects they truly believe
in. If you are committed to a vision and can share your enthusiasm with them,
they will want to be a part of your campaign. They also respond to the smart,
fun, and tangible rewards you offer in return for their support.
Clicking the Pledge button on any project detail page, you will be asked to select your pledge amount and corresponding reward. From there you will step through the PayPal checkout process. You must complete this PayPal checkout process in order for your pledge to be recorded.
FundaGeek recommends rewards which are not intrinsic but material:
Rewards in return for pledges should be chosen carefully in order to maximize their attractiveness to potential backers. If you are developing a product or service, then a small priced reward could be an autographed photo or sketch of the planned product, a higher priced reward could be the pre-selling of your product or service at a special price, and for a higher reward amount maybe you provide some simple personal customization of the product if appropriate, like their name engraved.Rewards could be anything from an invitation to a special launch party for a high value pledge to a promotional product like a bumper sticker for a lower value pledge. You must use your creativity to pick just the right reward to associate with a specific pledge amount. It is generally a good idea to choose rewards to energize your backers and make them feel special they have chosen to support your project.Remember that FundaGeek always includes the option for a backer to contribute any dollar denomination in return for no reward at all.
Will it work?
Innovative projects often fails. There is only one big thing. It's a "long - tail" distribution. In equity crowdfunding accredited investors know that they probably will loose their money. But what happens on FunderGeek if you match the one big thing? You have a immaterial stake, but no equity! Just have a look at the percentage funded and answer the question by yourself:
