Crowdfunding…it’s everywhere these days. Makes you wonder what can’t be crowdfunded? Let’s see…
You can crowdfund a down payment for a house, a business startup, a year of writing your first novel, real estate investments, inventions, the vacation of a lifetime for your elderly parents…on and on.
But what does it mean to give—or get—crowdfunded money?
The charm of crowdfunding is that regular people can give to ideas just because they want to. Crowdfunding often takes very little money from each person, so we all get to feel philanthropic for a cause that inspires us. We get to feel just a bit like Bill Gates, or like the investors on Dragons’ Den and Shark Tank when they invest in a new business.
How else can you explain total strangers funding things like “The Vacation of a Lifetime for My Elderly Parents” or “Help Us Get Our Baby Out of this Rat-Trap Apartment.”
Increasingly we see requests for down payment funding by newlyweds instead of traditional wedding gifts. Featherthenest.com and HatchmyHouse.com say the average amount raised is $8,500.
Other than intrinsic satisfaction, people often give to causes because they get a physical reward. For instance, “Save the Chinese Typewriter“ offers t-shirts and posters to people who fund their museum.
But before you rush off to get your cookie recipe book crowdfunded, here are some 2015 statistics from Kickstarter: 46.90% of all 159,054 projects got les than 20% of funds requested, and 10% never got a single dollar in pledge money.
Would it be great if you could crowdfund a down payment on a new house? There are other options available! Call me and let’s discuss how we can get you into your first, or next!, home.