Crowdsourcing is the practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people, and especially from an online community, rather than from traditional employees or suppliers
From the national flag to the Sydney Opera House, Australians have embraced the idea that a good idea can come from anyone, anywhere.
Perhaps its our location, our export-focused economy, small population or the cultural tendency towards egalitarianism and meritocracy. There’s no clear answer but it’s of no matter, the reality is that Australians love crowdsourcing. It can also be used as a ‘business matching’ service. If you’re an entrepreneur looking for like-minded people
In our own Australian suburban experience; remember raffles and donation drives by the Red Cross and the Salvation Army who used to knock on your door? These crowdfunding activities require a physical engagement; i.e. getting employees or volunteers to go door to door, do the work of delivering the donation envelopes and collecting them in neighbourhoods.
What’s changed to make crowdfunding so popular today?
Then because of the ubiquitous nature of bank cards and credit cards the door to door activity moved to mail and then to the phones, the effect was, a lot more cost effective way to raise funds.
We’ll the idea hasn’t changed but the tools and methods we employ have the ‘internet’ which has opened up the search from your little street, suburb or local community to the entire interconnected global community.
I was really inspired by a presentation given by Thomas Mai from Fandependent.com which outlined the new exciting ways that filmmakers are using to raising money for projects. The exciting part is around control of your own project and a faster timeframe than traditional models.
for inspiration checkout:10 of the best Aussie crowdsourcing projects from 2012
Top 10 movers & shakers in Australian crowdsourcing see also 5 new stars of Australian crowdsourcing
In the past we were seeking a lot of money from a small number of people, who in most cases wanted to have some control over your project it was a process fraught with constant compromise. Now we can ask a lot of people fora small amount of money. the average pledge on Kickstarter is $25
In the case of crowdfunding, people cooperate to finance a specific project, which is usually charitable or artistic and probably would not have been realised without the crowd. If there is a return in the case of crowdfunding, it is non-monetary. Thus, crowdfunding may be compared to a kind of donation. People help other people realise a project and are motivated by altruism.
Crowdfunding is not a new idea, composers such as Mozart and Beethoven used crowdfunding to finance their concerts and compositions – by means of a priori subscriptions that offered donors exclusive access to the works as a reward.
the power of crowdfunding is in the small things, the small things that to those in need seem insurmountable.
A great example is a woman I meet a couple of years ago she’d worked with 60 minutes and during that time had visited a refugee camp in northern Africa. She befriended a widowed father with 6 children, she kept in contact with him and sometime later found out that he need a new roof on his home, ‘a matter of $900’ she opened an account with Indiegogo campaign and with in a few days raised the money he needed and sent it to him
Use CrowdMapped to locate crowdfunding sites worldwide (zoom into your country and select a crowdfunding platform)
Comparison of crowd funding services via Wikipedia
Crowd-investing (Equity-based Crowdfunding)
Crowd-investing is equity-based crowdfunding. Users invest in a start-up and receive shares in return. Investors become shareholders of the start-up and benefit from the profits of the start-up and from the possible sale of the start-up to a large investor (also called “exit”). There are many different motivations to participate in equity-based crowdfunding. While some people simply want to support a good idea and its implementation, other micro-investors primarily focus on financial aspects, especially participation in the sale of the company.
In a very general sense, it was not possible for private individuals to invest in start-ups in the early stage before equity-based crowdfunding was introduced. Equity-based crowdfunding also enables private individuals to participate in start-ups by means of small (or large) investments.
3 Australian Equity Based Crowdfunding Websites.