At Launcht, we live and breathe crowdfunding everyday, but to some the term “crowdfunding” is still new and confusing. So, I figured it’s worth clarifying some things about crowdfunding and our crowdfunding platform software. First, there are two types of crowdfunding:
- The current perks-based type crowdfunding as seen on ThreeRevolutions.
- The new equity crowdfunding model recently legalized by the JOBS Act that provides a new way to invest in startups.
For the rest of this post I’ll only be referring to the current perks-based type of crowdfunding.
What non-profits call “social fundraising” is crowdfunding, and for that matter many forms of online fundraising are also crowdfunding. In other words, all the non-profit fundraisers out there who got folks to run a marathon and raise money for a non-profit cause in the process were hip to crowdfunding way before crowdfunders came along. Social fundraising empowers individuals to raise money from people in their social networks to fund a non-profit and in some cases the donors get thank you gifts or “perks” in return; that is crowdfunding.
Funders on crowdfunding platforms make contributions for many different reasons, some of which are quite philanthropic. Our clients see this and remind us every day that our crowdfunding software is as applicable to non-profit fundraising as it is to funding unique projects or financing a startup. As the first Benefit Corporation in the state of Vermont, we founded our company on the belief that it should be easy to fund the ideas that matter in this world. That’s why we made sure our white-label crowdfunding platforms are simple to use and flexible enough to work in many contexts.
As the providers of white label crowdfunding technology, we straddle two worlds, that of online fundraising and of seed stage financing. It has been exciting to offer software that both worlds need and it has led us into a number of formative product development conversations over the years. We are committed to both worlds and our technology works well for both, so we’ll keep on making “crowdfunding” easy, whether our clients call it online fundraising, crowdfunding, or social fundraising. It’s all good to us.