Crowdfunding, the practice of getting many sponsors to help fund a commercial project, is catching the attention of businesses as well as private individuals. In the past, if you wanted a company to sponsor your project you would have to approach them individually, but places like Indiegogo can bring the corporate sponsors to you instead.
There are a number of companies that are partnering with Indiegogo to support projects that align with their values. Some of these companies are official partners, and others just use the crowdfunding platform to identify projects quickly and then let their wallets speak for them by supporting a project.
Indiegogo
Indiegogo.com is an online venue for artists, entrepreneurs, or anyone with an idea who needs to get some funding to help make it come alive. Projects can range from commercial ventures to artistic or community projects that help out a local interest. No matter what project gets listed, the developer will have to offer different “perks” for different levels of funding. Larger levels of support can generate larger “thank you” gifts.
Since Indiegogo works as a community, people who fund the project can see who is funding and get recognition. For companies, it offers them a way to use social networking to fund pet projects and get their name out there to a group of like-minded individuals.
Companies Show Who They Are
If you go on Indiegogo.com, you will see a listing of official sponsors. Some companies are particularly suited to the types of projects that get listed and are more than willing to help start the ball rolling by adding some money to the pot. For instance, the San Francisco Film Society partners with Indiegogo to locate promising new film projects, which has become a favorite way to crowdsource a documentary or creative film. Even Startup America, an initiative to locate entrepreneurial projects started by the Obama administration has funded 66 campaigns on Indiegogo, giving out a total of $143,821.
Non-Profits Fund Social Action
Indiegogo isn’t just a place to fund projects that have commercial or artistic value. Numerous non-profits use the site to help fund projects that spur social action and change within a community. Women Make Movies is a feminist media organization that looks for projects that help to bring feminist issues to the forefront. On any given day, you may find businesses supporting non-profit goals and individuals supporting businesses.
The site is egalitarian in how it showcases each project and it is up to the lender to decide what project best exemplifies their business goals, creative aspirations, or social values. It’s also up to the lenders to decide what level of monetary support to give.
Individuals and Non-Partnered Sponsors
You don’t have to be an official sponsor to add your support to a project. National Payday is an example of a company that is not partnered directly with Indiegogo, but that uses the site to support projects that they find innovative. Among the projects, they have sponsored is Cash Mobs, a project that seeks to organize flashmob-style activities to spend money at a local business at a particular date and time to raise monetary support for it by purchasing products in the store.
While the project is not creative or commercial in nature, it exemplifies the type of alternative funding that is a hallmark of payday loans. It may seem unusual for a payday lending company to fund Cash Mob, but it actually fulfills the same function as a payday loan – a funding vehicle that can be put to any use – including socially beneficial activities. For payday lenders who often are maligned for their service, it can be a way for them to show their better sides in public and get the message across in a way that helps others. For the projects that get funded, it’s a way to put that money to very good use in the community around them.