SA Crowdfunding Blog

Tuesday, 23 October 2012 13:55

10 Great Things About Crowdfunding

With all the talk of crowdfunding as a source of small business funding, art funding and music funding in South Africa, we look at some of the great benefits of getting involved.

1) It provides access to capital.
As an entrepreneur, artist or musician, finding the finance you need to get your project of the ground will be one of the most business challenges that you will face. Provided that you have a great concept and is able to convince others of that, with hard work and allot of networking you will quickly see that you can turn buzz about your business into capital with which you can get started.

2) It reduces risk.
The basic nature of crowdfunding is that small portions of the money needed to start with the received from a many others. The Crowd. So comparing this to the traditional business model where risk is normally taken on by the entrepreneur and either the bank or the one or two investors, clearly in the case there is far less risk for all involved. – A real bonus for entrepreneurship and creativity in general don’t you agree?

3) It’s a great marketing tool
This benefit comes in two parts:
• You all of a suddenly have the greatest excise ever to shamelessly promote your idea to every one everywhere. Your personnel and social network all get to hear about your creativity and you have a real reason to shout your message from the roof tops.

• The crowdfunding platform itself attract allot of interest. Crowdfunding is very newsworthy right now and the media loves it. Radio, press, everyone wants to get involved. Not only will a platform like StartMe promote your projects to everyone who asks but will actively be sharing your opportunity with their networks, in their newsletters and you even get the benefit of their aggressive Search engine marketing campaigns.

Published in SA Crowd Funding Blog

With one of the recent projects on StartMe coming from a story writer, its useful to remember the variety of entrepreneurs we get here.  Crowd funding can be applied to almost any venture, and the arts are a prime area of need for business finance options. Funding for film-makers is not a new idea by any means, but it hasn't been used in South Africa that much. In June of 2011, Tyron Janse van Vuuren and others began a crowdfunding effort to raise R100,000 for a three-minute video that would raise awareness for the movie script he had written.

"Shady Valley" is one of the first funding for film-makers attempts in South Africa. The comedy-horror spoof concerns a teen who kills phony demons with his own version of karate. The crowdfunding effort received the capital necessary for the promotional video, making the next test the funding for film-makers necessary to make the film itself.

 Investor Funding is Nothing New

 Producers have been playing the part of crowdfunding for many years, but using the internet to reach the smaller investor is a relatively new way to finance film. A well-known producer or director can attract investments from both personal and business perspectives, and name recognition also entices the large movie studios to get on board, but the first time film-maker has a difficult time receiving any attention.

Published in SA Crowd Funding Blog

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