How can I use crowdfunding to help create worthwhile startups?
The question here is....
How can we use CrowdFunding (ie: indiegogo.com / gofundme.com / chipin.com) to help us raise startup capital or seed funding for our startups?
Thanks in advance!
PS: we just found and are testing this system - if it works well and we get good ideas, we will offer bigger and bigger prizes :)
Background:
We have a virtual incubator for startups (communiiity.com)
Our purpose is to create jobs by starting as many profitable social enterprises as we can collectively think up, develop, provide funding for, and profitably manage.
We aim to launch one new startup every month. Each of our startups is designed to become cashflow positive within 90 days of launching.
We usually need between $10,000 and $50,000 in seed money to create a startup and to pay for expenses over the first 90 days.
Having a wild array of shareholders all giving input and a little bit of cash would lead to a bunch of opinions from people that think they have a vested interest.
Idea from the Red team.
My thinking on it is that the best businesses to put forward for crowdfunding would be those that center around a worthy cause. Not necessarily charities, but businesses who's function furthers good works.Another idea would be to turn it into a competition. Offer the seed money as the prize for the top voted business idea, fund a small percentage of it yourself to spur others, but request that people who vote also chip in on one of the crowdfunding sites toward the seed money that will go to whoever the winner will be. If the top voted idea is under the seed amount, roll the amount over to the next round of competition. If the crowdfunded seed money isn't enough to fund the top voted business, then decide whether to fund the rest yourself or put the business back in for another round and roll the seed money forward. Or just award to the top voted within the funded range instead.
With all of your approach, why not build your own crowd-sourcing engine?
I could see you building a KIVA style approach except for the developed world.