Crowdfunding is when a group of individuals pledge or donate towards a common project goal outlined by the creator or entrepreneur. As crowdfunding is mostly conducted online, it has grown with the rise of social media.

Social media outreach enables the campaign creator to spread the word and passion for their project throughout their networks and beyond.

Reward based crowdfunding is when the campaigner offers something in exchange for monetary support - often a pre-order of the product or 'experiential' rewards. Many creatives and entrepreneurs in Australia and overseas have tapped into the passion of the crowd to get their projects off the ground.

Although creative and entrepreneurial crowdfunding projects tend to receive the most media coverage, when it comes to people-powered business, equity-based crowdfunding has attracted much interest.

In May 2014 the Australian Government's Corporations and Markets Advisory Committee (CAMAC) released their report into Crowd Sourced Equity Funding. You can access the report here CAMAC site

Crowdfunding has three phases:

  1. The preparation and research stage
    Take your time with this and learn from the knowledge and experience of others.
  2. Running your crowdfunding campaign
    Approach this as a job and remember there is no such thing as free money!
  3. Post campaign
    Meeting your crowdfunding goal is only the beginning! It's how you deliver and communicate that will enable you to build trust and an on going relationship with your supporters.

Happy Crowdfunding!
Anna Maguire
Author of Crowdfund it!

If you would like someone to assist you to develop your Crowd Funding campaign contact Crowd Funding Strategists Kat Jenkins or Anna Maguire

To find out more about crowdfunding, including comprehensive chapters on how-to, buy a copy of Crowdfund it! in print or digital editions directly from the publisher edita.