follow the crowd c - coassets.com-+23_04...unlike other crowdfunding sites, coassets does not accept...
TRANSCRIPT
By Kenny Chee
Crowdfunding is pickingup here, with new sitesopening in recentmonths to help smallcompanies and
individuals get funding for theirprojects.
Among them are telcoStarHub’s Crowdtivate and onlineretailer Haystakt’s Projectssection, which was launched lastmonth.
Such sites typically allowstrangers to contribute funds forprojects listed by a company orindividual. This is done over afixed period of time.
Many such fund-raisingcampaigns offer rewards tobackers who fund a project. Thismay include a substantialdiscount for buying a productdeveloped under the project.
Digital Life looks at fourhome-grown crowdfunding sites.
CrowdonomicLaunch date: January 2013Funding period: Up to 60 daysPayments: By credit card or PayPal.Payments will not be refunded toproject backers even if a project’sfunding target is not met. Butrewards for backers are still expectedto be honoured.Project owner fees: 9.5 per cent ofthe funds raised if the project doesnot meet its funding target. If afund-raising campaign meets orexceeds its target before thedeadline, the fee is lowered to 6.5 percent.What: Crowdonomic is acrowdfunding site focused onhelping Asian small- andmedium-sized enterprises seekfunding for their projects.
It is run by a team of eight. Thesite can also advise project ownerson how they can run their fundingcampaign, such as how a project canbe marketed.
Crowdonomic and its partner
websites have launched campaignsin 16 countries, with supporters from70 countries, according to the site.
Most campaigns on Crowdonomicare from Singapore.
A recent successful campaign isone by the World Wide Fund forNature Singapore (left). It sought toraise funds to aid wildlife rangers intheir fight against the illegal wildlifetrade. It raised more than US$21,300(S$26,600), which was above itsinitial target of US$20,000.
Project owners are vetted for theirintent, credibility and quality.
CoAssetsLaunch date: July 2013Funding period: No standardfunding periodPayments: Not applicable becauseCoAssets does not accept paymentsProject owner fees: There are no feesfor listing on the site as it makesmoney from advertisements, helpingdevelopers to market their projectsthrough e-mail and holding sessionsfor consumers to meet developers.What: CoAssets helps propertydevelopers find people who areinterested in investing in andfunding real estate projects.
It helps developers findshort-term financing from the public,which can help these firms save onthe interest they would pay on loans.
Unlike other crowdfunding sites,CoAssets does not accept payments.
This is arranged with the developersinstead.
The site is managed by about10 people. Since it launched last July,more than $20 million worth of dealshave been put up, said the site’schief executive, Mr Getty Goh. Ofthese, $6 million have gone ahead.Projects have come from South-eastAsia and Australia.
Developers who want to be listedon the site are put through a basicscreening process to see if they havethe proper licences.
HaystaktLaunch date: Last monthFunding period: Up to two monthsPayments: Payments are deductedthrough PayPal only if a minimumnumber of backers is met by targetdate.Project owner fees: 5 per cent fee onall orders made through the site. Feeis not charged if minimum numberof backers required for the project isnot met.What: Its Projects section is focusedon helping designers gauge
consumer interest in new productsbefore they go into production.
The site will list a starting pricefor a product. As more people backthe project, its price falls. Peoplewho back the project earlier stand toenjoy steeper discounts.
A team of four people is behindthe Projects site. Since it launchedlast month, eight projects – fromSingapore, Thailand, Indonesia andIndia – have been listed. Of these,four were funded successfully.
Backers will need to makepayments for projects that have aminimum number of backers.
Projects that have been fundedinclude a “skinny” wallet and a bowtie made of wood (above).
Before a project is listed, it isscreened to determine its originality,and whether a physical prototypeexists.
SME Tech
CrowdtivateLaunch date: Next monthFunding period: Up to two monthsPayments: By credit card or PayPal.Payments made will not be refundedto backers of the project even if thefunding target is not met. Butrewards for backers are still expectedto be honoured.Project owner fees: 4 per cent offunds raised, regardless of whether aproject meets its funding target ornot.What: Crowdtivate is a crowdfundingsite for projects related to the arts,books, films and technology.
Telco StarHub and crowdfundingplatform operator Crowdonomicco-manage the site.
After a project or idea has beenaccepted, Crowdtivate mentors the
fund-raising campaigns and providesbusiness incubation support.
The top three monthly campaignson the site can get extra help,including access to test users,marketing support, start-up fundingand free software development.These campaigns are selected basedon their quality and votes from thepublic. Backers can get rewards, suchas products or services.
Industry partners help to assessand review projects before they arelisted. They assess the credibility ofthe project owner, the practicality ofits targets and its sustainability.
Some successful ideas andprojects may even be incorporatedinto StarHub’s own services. Thetelco plans to partner companiesinstead of acquiring them.
Follow the crowd
APRIL 23, 2014 . THE STRAITS TIMES . DL 19