KickStarter, Ulule, MyMajorCompany … close up on crowdfunding

Popularized by services like My Major Company or KickStarter, the principle of crowdfunding, ie crowdfunding, is nowadays present on the Internet in a variety of sectors. Users can increasingly get involved and especially to invest in projects that interest them. But what return? For crowdfunding is not just giving, it is also often receive. The problem is that this kind of service is not always intended for it, and that the promises are not always kept. The development of this high stakes approach we deserved some attention.

Crowdfunding, in broad terms, what is it? It is an approach to financing and participatory production. On one side there is the initiator of a project which the present as well as its more or less short-term plan, and that gives a financial estimate in the form of money to achieve. On the other side, there are potential participants in the financing, generally known backers (for donors): if they are seduced by the project, they can give a sum of money, symbolic or more substantial, that the approach succeeds. Usually the gift is on standby until the donation period ends if the amount originally expected by the project leader is reached, the participants’ accounts are then debited. Otherwise, the project is closed and does not collect money.

The success of a project submitted to crowdfunding depends on several criteria: it must, first, achieve capture the attention and interest of potential financial partners. On the other hand, it must submit a budget to its height, it will be possible with the support of his community. Two important issues but, as we shall see later in this folder are not the only ones who can guarantee the success of a presentation crowdfunding project.

Some famous large public platforms

Among the popular crowdfunding platforms include, France, My Major Company: Founded in 2007, the record company has the particularity to offer its community to invest in young artists to produce their first album. If it is successful, donors receive a return on investment up to the amount originally paid. The most famous artist from My Major Company is Gregory singer, whose debut album, crowned diamond disc – 500,000 units sold – has allowed its first fans to maximize their investment. Today, this platform has become widespread and is dedicated solely to more music.

My Major Company opened the way for many other crowdfunding services in France in recent years, they target a specific sector such as cinema – People for Cinema, Touscoprod – video games – Digital Coproductions, Gamesplanet Lab – publishing – Mymajorcompanybooks, Sandawe – sport – – or are more general, like to Ulule or Kiss Kiss Bank Bank. As many platforms born since 2007, some of which have only a few months to date.

Kiss Kiss Bang Bang, French GP platform.

But as you can imagine, this phenomenon is not specific to France, and a large number of projects resulting in recovering huge sums come to us from across the Atlantic. In the US, it had to choose one, it would undoubtedly KickStarter: if it is not the first US service of its kind – was launched in 2009 – his popularity and status make it the preferred platform for large projects to very large budgets.

Crowdfunding also by pros for pros

But crowdfunding has its place in the workplace, with platforms like Z’entreprendre that mixes social network and crowdfunding. Entrepreneurs will unveil their project, are a “trust network” and receive community councils. The draft is then submitted to receive support: the process is starting a business, it necessarily speaks less to the general public and more to diehard investors.

However, an individual involved in a project submitted to crowdfunding involved, somehow, in a similar fund raising to those found in the environment for start-ups and business angels is … There a so far?