What Is Crowdfunding, Anyway?
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Joe Brewer
Mar 29, 2011, 2:43:20 PM3/29/11
to Crowdsourcing Social Movements
Hey Everyone,
I just wrote this blog post, titled Why Crowdfunding Isn't Really
About Money:
http://www.chaoticripple.com/2011/crowdfunding-isnt-about-money/
In it I define crowdfunding as a community-engagement process that
leads to meaningful collaboration. I'd love to hear your thoughts.
What do you think crowdfunding is? And how do you see it being useful
for social movements?
We can draw insights together that will inform what gets put into the
Crowdfunding Manual.
Looking forward to hearing your thoughts!
Joe
I just wrote this blog post, titled Why Crowdfunding Isn't Really
About Money:
http://www.chaoticripple.com/2011/crowdfunding-isnt-about-money/
In it I define crowdfunding as a community-engagement process that
leads to meaningful collaboration. I'd love to hear your thoughts.
What do you think crowdfunding is? And how do you see it being useful
for social movements?
We can draw insights together that will inform what gets put into the
Crowdfunding Manual.
Looking forward to hearing your thoughts!
Joe
Ariel Dougherty
Mar 29, 2011, 4:36:55 PM3/29/11
to crowdsourcing...@googlegroups.com, Joe Brewer
In part, I am a filmmaker turned development director --- because
one of the things an independent filmmaker does is spend a lot of time
fund raising.
Crowdfunding is practitioner created and lead. It is very exciting in that respect. Second, there is a vital opportunity for the contributing donors to play a role in broadening the reach of the appeal to new and greater circles of contributors.
Whereas, advisory panels ( key "peer" review processes for NEA, NEH, state arts agencies, Rockefeller media fellowships/Renew Media/now Tribeca Media Arts fellowships, etc, etc, etc) tend to have an panel dynamic that can enforce existing trends and or possibly prejudices. So, the process is stymied and prolonged (time of application to award). Further, you as a person in the public (despite it being public funds / or publicly tax-exempted) have no role. I have long noted the absence of "audience participants" on these funding panels.
One question I have, is there some way to deepen the reach in the Crowdfunding process -- some way that as a donor of XY&Z, I might receive a notice about a new project that deals with similar issues as X. As a funder of Granito on Kickstarter, I studied its list of donors (347). It helps that I know the filmmakers since the late 70s. Still I used the investigation as a learning curve. I found several others who funded one of the other films I supported. Finally, bingo, I found one person who funded all the other films I supported. But she did not also support the women's home building project in Oaxaca that I did.
So, a deepened Crowdfunding vehicle 1) cross reference on who funds what 2) also similar to blog tags as a donor you could ID some specific interests and when those items come up in newly listed projects you get a notice.....
Also, how do we enlarge our funding raising targets? From $5K say of this project? what if it had instead needed $100K or we envisioned turning this process into a TV show on FSTV and we needed $500K could we as a group collect that level of funds? Call it Crowd-Crowd Funding. Or Crowd 2.0 Funding? I think this involves the Trust that was discussed in earlier threads.
Best, Ariel--
________________________________________________________________
Ariel Dougherty advocate 4 gendered media www.mediaequity.org
575. 894. 1844 fx 575. 894. 1845 Ariel...@gmail.com Twitter: MediaEquity
latest piece: Three Feminist Media Principles: Envisioning a Path to a Less Violent, More Truthful Media
Associate Producer:! Women Art Revolution Lynn Hershman Leeson's documentary
on Feminist Art Movement, Premiered at Toronto International Film Festival
NYC premiere at MOMA March 3rd at 6:30; NYC Theatrical run June 1 -7 at IFC Center
Crowdfunding is practitioner created and lead. It is very exciting in that respect. Second, there is a vital opportunity for the contributing donors to play a role in broadening the reach of the appeal to new and greater circles of contributors.
Whereas, advisory panels ( key "peer" review processes for NEA, NEH, state arts agencies, Rockefeller media fellowships/Renew Media/now Tribeca Media Arts fellowships, etc, etc, etc) tend to have an panel dynamic that can enforce existing trends and or possibly prejudices. So, the process is stymied and prolonged (time of application to award). Further, you as a person in the public (despite it being public funds / or publicly tax-exempted) have no role. I have long noted the absence of "audience participants" on these funding panels.
One question I have, is there some way to deepen the reach in the Crowdfunding process -- some way that as a donor of XY&Z, I might receive a notice about a new project that deals with similar issues as X. As a funder of Granito on Kickstarter, I studied its list of donors (347). It helps that I know the filmmakers since the late 70s. Still I used the investigation as a learning curve. I found several others who funded one of the other films I supported. Finally, bingo, I found one person who funded all the other films I supported. But she did not also support the women's home building project in Oaxaca that I did.
So, a deepened Crowdfunding vehicle 1) cross reference on who funds what 2) also similar to blog tags as a donor you could ID some specific interests and when those items come up in newly listed projects you get a notice.....
Also, how do we enlarge our funding raising targets? From $5K say of this project? what if it had instead needed $100K or we envisioned turning this process into a TV show on FSTV and we needed $500K could we as a group collect that level of funds? Call it Crowd-Crowd Funding. Or Crowd 2.0 Funding? I think this involves the Trust that was discussed in earlier threads.
Best, Ariel
________________________________________________________________
Ariel Dougherty advocate 4 gendered media www.mediaequity.org
575. 894. 1844 fx 575. 894. 1845 Ariel...@gmail.com Twitter: MediaEquity
latest piece: Three Feminist Media Principles: Envisioning a Path to a Less Violent, More Truthful Media
Associate Producer:! Women Art Revolution Lynn Hershman Leeson's documentary
on Feminist Art Movement, Premiered at Toronto International Film Festival
NYC premiere at MOMA March 3rd at 6:30; NYC Theatrical run June 1 -7 at IFC Center
Jay Standish
Mar 30, 2011, 4:14:37 AM3/30/11
to crowdsourcing...@googlegroups.com
Ariel,
The question of how to bring crowdfunding to the next level to serve independent film has been on my mind over the last few months as I have been trying to craft a "modern" fundraising strategy for a film project I'm working on about the new economy (www.symbionomics.com)
We raised our first $10k through Kickstarter, but its not really a viable option for the $100k+ that we'll need.
We've been dreaming of a web-video platform and "marketplace" that matches audience interests to film producers and directors, and could also have some smart crowdfunding/patronage models built in. If you'd like to discuss and brainstorm further, let me know!
Jay
Ariel Dougherty
Mar 30, 2011, 1:47:37 PM3/30/11
to crowdsourcing...@googlegroups.com, Jay Standish
Jay,
Granito actually raised $37,400. I thought it might be overly ambitious. But I am proved wrong. Specifically it was solely to get the film qualified for an Academy Oscar -- largely to make a 35MM print. Very specific, and in my opinion, a hair anachronistic. The vast majority of the donors were under $100.
Whereas for your project almost a full third of the support came from three donors at $1000 each. My gut tells me you might have pushed more..... But I know the hesitation of not wanting to over-reach. Maybe Granito / Skylight productions has a much larger support base, as well.
Generally, I agree that $100,000 is hard to raise this way. However, there are numerous positive examples. Maybe clear delineations in the different stage of the production; and over various separate appeals, it can be accomplished.
I am not sure a specific web site as you describe would work. GFEM has a sort of component like that; Women Make Movies lists all its sponsored projects (100s). Neither of those sites -- to my knowledge -- attract new funders to those projects.
Instead, as the mandate of this initiative (list discussion etc) advocates, I wonder if a specific Transformative / (Radical) Social Change Funding Exchange isn't what is needed -- that it has such a mission and an evolutionary funding projection -- a mechanism to seed new small scale projects, as well as say national efforts. It could support Toolkit manuals, specific film productions, grassroots organizing, new economic models, but also something like a more dynamic alternative TV network or an expanded FreeSpeech TV. And like the present models of RocketHub, Kickstarter, etc doing it project by project is a good working model. Just much more progressive to radical social change in its focus.
Key will be having a new monetary vehicle beyond Amazon, etc.
Best, Ariel
Granito actually raised $37,400. I thought it might be overly ambitious. But I am proved wrong. Specifically it was solely to get the film qualified for an Academy Oscar -- largely to make a 35MM print. Very specific, and in my opinion, a hair anachronistic. The vast majority of the donors were under $100.
Whereas for your project almost a full third of the support came from three donors at $1000 each. My gut tells me you might have pushed more..... But I know the hesitation of not wanting to over-reach. Maybe Granito / Skylight productions has a much larger support base, as well.
Generally, I agree that $100,000 is hard to raise this way. However, there are numerous positive examples. Maybe clear delineations in the different stage of the production; and over various separate appeals, it can be accomplished.
I am not sure a specific web site as you describe would work. GFEM has a sort of component like that; Women Make Movies lists all its sponsored projects (100s). Neither of those sites -- to my knowledge -- attract new funders to those projects.
Instead, as the mandate of this initiative (list discussion etc) advocates, I wonder if a specific Transformative / (Radical) Social Change Funding Exchange isn't what is needed -- that it has such a mission and an evolutionary funding projection -- a mechanism to seed new small scale projects, as well as say national efforts. It could support Toolkit manuals, specific film productions, grassroots organizing, new economic models, but also something like a more dynamic alternative TV network or an expanded FreeSpeech TV. And like the present models of RocketHub, Kickstarter, etc doing it project by project is a good working model. Just much more progressive to radical social change in its focus.
Key will be having a new monetary vehicle beyond Amazon, etc.
Best, Ariel
Vlad Vukicevic
Mar 30, 2011, 2:05:50 PM3/30/11
to crowdsourcing...@googlegroups.com
Hi Joe and Team,
Thank you for putting this together. As the RocketHub representative, it's an honor to participate in this group.
At RocketHub we believe that the current "sweet spot" for crowdfunding is is $2,000 - $10,000. The projects on RocketHub, Kickstarter, and the other platforms that have gotten press and have gone on to raise significantly more than $10,000 were almost always spearheaded by notable, and previously successful individuals (or teams). Crowdfunding works best at mobilizing and existing community - it is still difficult to convert complete strangers, although this ritual is becoming increasingly ingrained.
At RocketHub we are working to expand the crowd - to enable both individuals and organizations to directly support crowdfunding projects. That is how we're going to enable projects to raise over larger sums.
Cheers,
Vlad
Joe Brewer
Mar 31, 2011, 3:03:45 PM3/31/11
to Crowdsourcing Social Movements
Vlad makes an important point, which is that crowdfunding must scale
with the community it arises out of. Most crowdfunding projects will
be "micro scale" in the range of $2000 - $10,000 because this meets
the balanced criteria of the Goldilocks Principle which says that the
target needs to be just right... not too big, not too small.
So a target in the range of a few thousand dollars feels big enough to
be significant, yet small enough to be realistically achievable. And
perception is critical because people need to believe the project is
possible if they are to meaningfully participate.
That said, there have been very large crowdfunding efforts like the
funding of the Statue of Liberty and, in a more generic sense,
taxation to pay for public goods in modern democracies. Challenges
arise with opacity of institutions like the federal government taking
in taxes to pay for public programs and the incomprehensibility of
complex projects that are hard to engage with because they have too
many moving parts.
The greatest successes in the open source realm have been built on
modular architectures, with the Linux operating system and Wikipedia
as shining examples. There is an art to modularity combined with
purposeful engagement that must be practiced well in order to scale
projects. I've found that a tiered release of projects that build
around common themes can be useful for sustained engagement. The key
is to get the community to grow with each project so that "ask
fatigue" doesn't set in. You'll need a diverse set of funders to self-
organize around each phase of the larger effort that each project fits
into. And sometimes the "sub-communities" will not overlap much at
all.
For example, the people who funded my Progressive Strategy Handbook
were not the same people who funded the Crowdfunding Manual. There
were a small number of highly engaged individuals who funded both
projects, but it is the larger span of varied affinity groups that I
engaged to successfully reach the funding targets for the two
projects. Yet I have a vision for how the two projects fit
together... centered around the desire for empowered communities to
take leadership in social movements. This larger conceptual frame
holds the shared vision for both projects.
Scaling is possible, and rather likely to occur, if the set of modular
projects are envisioned strategically to grow the community in each
wave of engagement and increase the feelings of personal connection to
the momentum around the set of projects that come into being.
As you can see, this is a nuanced and sophisticated process. Our hope
with the Crowdfunding Manual will be to teach more people the
foundational skills necessary to achieve larger endeavors through
crowd engagement.
Best,
Joe
> *Co-Founder & CTO*
> P: 516-353-2249
> RocketHub.com <http://www.RocketHub.com>
>
> facebook.com/RocketHub <http://www.facebook.com/RocketHub>
> twitter.com/RocketHub
with the community it arises out of. Most crowdfunding projects will
be "micro scale" in the range of $2000 - $10,000 because this meets
the balanced criteria of the Goldilocks Principle which says that the
target needs to be just right... not too big, not too small.
So a target in the range of a few thousand dollars feels big enough to
be significant, yet small enough to be realistically achievable. And
perception is critical because people need to believe the project is
possible if they are to meaningfully participate.
That said, there have been very large crowdfunding efforts like the
funding of the Statue of Liberty and, in a more generic sense,
taxation to pay for public goods in modern democracies. Challenges
arise with opacity of institutions like the federal government taking
in taxes to pay for public programs and the incomprehensibility of
complex projects that are hard to engage with because they have too
many moving parts.
The greatest successes in the open source realm have been built on
modular architectures, with the Linux operating system and Wikipedia
as shining examples. There is an art to modularity combined with
purposeful engagement that must be practiced well in order to scale
projects. I've found that a tiered release of projects that build
around common themes can be useful for sustained engagement. The key
is to get the community to grow with each project so that "ask
fatigue" doesn't set in. You'll need a diverse set of funders to self-
organize around each phase of the larger effort that each project fits
into. And sometimes the "sub-communities" will not overlap much at
all.
For example, the people who funded my Progressive Strategy Handbook
were not the same people who funded the Crowdfunding Manual. There
were a small number of highly engaged individuals who funded both
projects, but it is the larger span of varied affinity groups that I
engaged to successfully reach the funding targets for the two
projects. Yet I have a vision for how the two projects fit
together... centered around the desire for empowered communities to
take leadership in social movements. This larger conceptual frame
holds the shared vision for both projects.
Scaling is possible, and rather likely to occur, if the set of modular
projects are envisioned strategically to grow the community in each
wave of engagement and increase the feelings of personal connection to
the momentum around the set of projects that come into being.
As you can see, this is a nuanced and sophisticated process. Our hope
with the Crowdfunding Manual will be to teach more people the
foundational skills necessary to achieve larger endeavors through
crowd engagement.
Best,
Joe
> P: 516-353-2249
> RocketHub.com <http://www.RocketHub.com>
>
> facebook.com/RocketHub <http://www.facebook.com/RocketHub>
> twitter.com/RocketHub
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