The Popularity of Crowd Funding

Crowdfunding is nothing new.  Kickstarter, Indiegogo and Patreon are a few platforms that Charitable Organizations, musicians, artists and small businesses have been using for a number of years to get financial support for their projects. These donation-based crowdfunding platforms allow anyone with a good idea or cause to solicit funding. A number of different models of crowdfunding have developed that offer businesses the opportunity to raise funds outside the traditional avenues of banks and venture capitalists.

Donation Based

Donation-based crowdfunding platforms such as Kickstarter are also used to fund business projects and products. Money is pledged in return for gifts, prizes or rewards, often connected to the project or product being funded. In order to benefit from this model, the business proposition should be modest, with low fixed expenses and low marginal costs. The benefit to business is that there is no ongoing payback to the investors in terms of interest or equity-ownership. Hand Stylus, a stylus for touchscreens, was successfully funded on Kickstarter. The company, which raised more than $300,000, offered a custom laser-engraved stylus to each $30 supporter.

What Makes Crowdfunding Unique?

Each model has its pros and cons, mainly because each is aimed at a different type of business. However, all models of crowdfunding have a number of things in common, which allows them to offer unique benefits, especially to small businesses and projects.

Implementation costs:

• Crowdfunding platforms make it extremely easy to set up and manage a campaign.
• The costs of raising money are much less than an IPO or a bank loan.
• A new business can get funding very early in the start-up phase without having to involve venture capitalists.

Attracting investors or contributors:

• By using a crowdfunding platform, a business can cast a very wide net for potential supporters.
• The platforms allow a business to interact with these supporters in new and innovative ways.
• The supporters can become the customer base and can spread the word about the project, bringing in more business and more supporters.
• Crowdfunding can attract funding for projects that may not appeal to traditional investors because they are too small or are viewed as too risky.

For any crowdfunding model to succeed in the long term, investors and contributors must have faith that their money is being used for the purpose for which it was raised. Each platform has checks and balances in place to protect donors and investors, so carefully investigate the ones you are considering funding.

A problem or an oportunity?

Situations are powerless without our actions, and sometimes we have to look at both sides of a situation and instead of recognizing problems, we should look for opportunities to learn, grow and create a solution to finally pass it along. On this Ted Talk we see how Dr. Pausch, although having an 'Elephant in the room", as he expressed it, chose to have a positive view and make something worth and valuable out of his own experience to knock on the doors of people mindset. This talk has inspired me to always want to do the best of me and look for all those opportunities, this lesson is not only for the entertainment spectrum, but for overall business and life.

When Dr. Pausch said he was lucky because his parents allowed him to paint whatever he wanted on the walls of his bedroom, he lets you know that it was an important lesson to him about "People vs. Things". This has an impact in our childhood as much as going to the movies for the first time and it adds significantly in the task of keeping our inner children alive. When our parents focus so much in not allowing us to be kids, as for example being careful with the new car, yes it makes us understand the value of material things and that we should take care of them, but when you are a child that is ephemeral and it is only later as you grow up more aware that you understand concepts like that. That is why Dr. Pausch said in his presentation that he was lucky because his parents allowed him to paint on the walls. So to wrap it up, sometimes our inner child even dies before we grow up from childhood because of parents who are not aware of the significance of letting their kids be kids. Lessons about life that Dr. Pausch learned as a child made him be the man we saw in that presentation.

Another relation I would like to make is about the "Creative Breakthrough", it stroke me like a bolt of lightning when Dr. Pausch said the reason behind his research and work, besides trying to teach people how to live their lives, was connected to his children. Dr. Pausch found a great motivation that drove him through the development of his project, but it was the legacy that he was leaving to his children that made him put every ounce of his self on it. And that is it, when you find the "perfect excuse" to work day and night on your project and think about the satisfaction and reward its potential success will provide, you know you had one great idea and you want to see it through.

Now I make a comeback to the first paragraph, where I said that Pausch chose to have a positive view despite everything that was going on with his life. He decided to let himself out of the sadness and depression that his condition meant, he was not only focusing in the fact that he was dying his "dimensional mind" was already awaken, he decided to be Tigger and not Eeyore, he did not let a possible bad attitude or how disgrace his life was because he was dying knock him down. He allowed himself to have a positive attitude, and that folks is what we must have in every endeavor we choose to carry on, and in every brick wall life builds in front of our progress: a positive attitude and a multi-dimensional mind that let us see beyond. 

Here the link to the video:

http://www.ted.com/talks/randy_pausch_really_achieving_your_childhood_dreams