We hear more and more frequently about ideas or projects financed through a new collective financing system called Crowdfunding, in the news, on the internet, etc. And is that this alternative financing method has come to our country with force, it is here to stay.
But, what does this type of financing consist of?
Crowdfunding today has positioned itself as a powerful alternative to financing through banking or credit institutions, reaching in Spain up to 101 million euros in the period between 2012 and 2014 and were more than 2 million Spaniards They already do crowdfunding projects. It is an unprecedented democratization of capital where individuals collaborate altruistically in projects that may be interesting, giving rise to a collaborative culture that is allowing us to reactivate our more social economy.
Types of crowdfunding
There are different types of crowdfunding that have been emerging over time. These are the 4 most popular.
- Crowdfunding de recommend: In this type of crowdfunding, the one that lends his money receives in exchange some type of referendum, which will depend on the amount contributed.
- Crowdfunding of donation: In this type of crowdfunding the mentor receives nothing in return for his money.
- Crowdequity: Here the thing changes. The investor enters to participate in the capital of the company in exchange for his money.
- Crowdlending: The investor, in this case, receives a return in return for his money and a loan contract www.purplepayday.loan is formalized. This type of crowdfunding is what we offer in MytripleA.
Study of crowdfunding projects
In this study, we focus on the cases that are included in the crowdfunding of recommendation or donation.
There are many and very varied Crowdfunding projects that opt for this financing system to carry it forward. As varied as the number of platforms that are currently active in our country and are responsible for publishing these projects to disseminate and find individuals who are interested and decide to contribute their money in the Crowdfunding project. For this post, we have decided to carry out a small analysis work in which we have gathered information about a large part of the existing crowdfunding platforms in our country and some of their projects.
Platforms where to publish Crowdfunding projects
There have been 36 Crowdfunding platforms selected, among which are the main ones such as Lánzanos, Goteo, Verkami, Microdonaciones with a large number of projects financed behind their backs or some others of foreign origin but also operate in our country as Kickstarter or Mymajorcompany. From the 36 selected platforms you can highlight the following data:
- 22% manage projects focused on the social field
- 16% are of a generalist type, that is, they cover projects of various kinds without specifying in a specific subject.
- Those that publish projects with artistic content represent around 11% and those whose projects are specifically musical, represent 85% of the total, as well as those destined for entrepreneurship projects.
- In a lower percentage, around 2% are other platforms dedicated to more specific Crowdfunding projects such as private trips or personal reasons.
Types of applicants for Crowdfunding projects
From each platform, some more outstanding projects have been selected, or are still in progress. In total, there have been 32 projects. Taking into account the type of individual, organization or company that requests the financing can be summarized in the following data:
- 18% are musicians
- 15% come from StarUps
- Another 15% are private
- 12% associations that choose this method to raise money
- Foundations with 9%
- Around 3% are innovative products.
To apply for funding through Crowdfunding
And we ask ourselves, for what purpose do the applicant’s finance? The reasons are very diverse but after analyzing the projects we had selected we can check the following:
- The majority, 25%, are destined for social projects, that is to say, charitable causes to help disadvantaged people, or with ecological aims for the improvement of the environment.
- Then most of the selected projects, with 15 %, come from musicians who use the collaborative economy to record their records.
- In third place, with 12% are the personal reasons of individuals requesting financing, such as the case of athletes to participate in tournaments, or people who need financial resources to cover their personal expenses.
- 9% of these projects are destined to the development of innovative products.
Are the projects completed by Crowdfunding?
Of the 32 projects selected more than half, 59% exceed the amount requested, in these platforms is usually put a figure, which is the minimum necessary to carry out the project, however, there is no maximum amount and everything he who wishes to contribute can do so even if he has exceeded the minimum amount. However, 19% of these fail to reach the minimum amount requested.
How many investors participate in Crowdfunding projects?
Regarding the number of investors, most of the Crowdfunding projects have a number of investors that ranges between 30 and 60. Although a large part of these is financed by a number of investors between 120 and 240. The number of investors will depend on the amount requested.
How long are the projects?
Regarding the average time, many platforms stipulate an equal time for all projects, such as Verkami, which establishes 40 days to obtain financing, or Lacanzanos, which establishes 90 days in which individuals can donate their money. As for the rest of the analyzed platforms, they tend to have a similar time around 2 and 3 months.
Amounts requested in Crowdfunding projects
Among the 32 selected projects total a total of € 659,000 financed. That Crowdfunding project that raised the most money, with an amount of € 348,830, was through the Verkami platform and it was about the financing of the Film “L’Endemá”: A project by Isona Passola that set out to produce a documentary about the independent spirit in Catalonia. The second one was through the platform My Major Company in which rapper Chojín reached an amount of € 51,290 to be able to finance his album. The rest of the projects are around € 5,000 on average.
If you want to know a little more about this study of the Crowdfunding platforms you will be interested in the post the Crowdfunding in Spain in data, with infographics.