Examination Crowdfunding platforms

Another part of the research I’ve been doing is what type of crowdfunding platform we are going to choose for our CF campaign. I didn’t know this before but there are actually quite a lot out there, even in a small country like the Netherlands there are whole bunch. I first started my investigation overall. So, I looked at a couple of comparison websites, like top10crowdfund.nl/. This website gave the overview of crowdfunding websites that are active in the Netherlands. The website estimates that there are 92 crowdfunding platforms operating in the Netherlands.

cfplatforms

What should we choose?

There are very many different crowdfunding platforms to choose from. Some very specific to a certain topic or a specific way of funding (e.g. just by lending instead of donations and rewards) and some are more generic like Kickstarter or Indiegogo. I’ve looked into most of the popular ones, but most of them looked like a saturated pool to me.

The two golden questions and a bit of myself

It was nice to have an expert, which I interviewed before this research,to give me advice on this subject. Eric Heesen, the founder of Crowdfundy, told me two golden questions I should ask myself before chosing a crowdfunding platform. First “Wat was the topic our crowdfunding would be about?”. The second question was “What type of financing system did we want to have?”. In crowdfunding there are four different kinds of funding: equity, loan, rewards and donations.

What I also saw on many crowdfunding platform that there is a certain fee that you have to pay beforehand or afterwards. These fees depend on wether or not you have successfully achieved your goal and how big your goal was. This is called “placement fee” and “success or failure fee”. I’ve put these also in the description for a more detailed overview.

Our answers

The answer that our team had answered to these questions was that: “We were a social enterprise and worked with refugees and inspired enterpreneurship.”. So three topics I could search for when looking into the “right” crowdfunding platform.

And the second answer was that we didn’t want any lending crowdfunding campaign, nor do we want convertible lends (loans that can be converted into shares). We want to go for the rewards and / or donations. Ideally a mix between the two.

So I set my two parameters to these conditions and out of these came four platforms that we are going to discuss at large on the first of September, which is this Thursday. A quick note, I’ve put the financial details of the platforms at the bottom so it is easier to compare.

The Platforms

  • OnePlanetCrowd
  • 1%club
  • Chuffed
  • Crowdaboutnow

OnePlanetCrowd

oneplanetcrowd

OnePlanetCrowd is a platform that is stationed in Amsterdam. Their main topic is social sustainable impact. So, it is ideal for our organisation to take into account, because our organisation is similarily concerned about the same topic. Their main target group is social entrepreneurs, which we also are. Further than that, everything that falls into this category is allowed. OnePlanet has a few criteria that we would have to take into account.

Conditions

  • The project has to have an positive impact on man or nature
  • There is a concrete, urgent and clear communicable spending target
  • The financial needs must be between the 1.000 and the 1.000.000 euro’s
  • The campaign has to be totally led by the one who started the campaign.
  • If you don’t get your goal, every penny is send back to the investors

Another thing to take in account is that the platform is mostly based on projects in Germany and The Netherlands.

One%Club

1%club

This is also a crowdfunding platform that is stationed in Amsterdam, but other than the previous platform, the one%club is internationally oriented. It spreads the message that the projects that are being put on the platform all do ‘something good’. This can mean anything, but is in the realm of social projects. For example there are projects in Zambia that fund a new sustainable school, support refugee employees in Greece or support a sailing school just in the Netherlands.

Conditions

  • The target amount must be between the 250,- and 1.000.000,-
  • Successful or not, you will always get your money with this platform

Chuffed

chuffed

Chuffed is an Australian platform that is internationally oriented. And it was actually interesting to see that this page was one of the few, that had a tab especially for refugees. And since our core business is helping refugees, I was compelled to look into this one. The more I read the more I liked it. To quote Chuffed:

“We only crowdfunds non-profit and social enterprise projects. That’s it. That means we know what works for social causes, and our community is only interested in projects like yours.”

The website is very suitable with a lot of information on how to promote your own campaign. Luckily One%club has the same policy, but the afore mentioned onePlanetCrowd does not have that at all. What makes it a more difficult choice is that this is the only platform that is not stationed in the Netherlands.

CrowdAboutNow

crowdaboutnow

This platform is different from the rest because it is the only platform that is completely Dutch oriented and is stationed in Utrecht. It is all about social entrepreneurship. They assume you are one, of course, and they stretch the importance of the network that you already have. They say they offer much support during the campaign. I called this company as well and they advised me to check what kind of finance system we want. If we want to go on to (convertible) loans we should look at a platform like OnePlanetCrowd. When we want to do it more based on rewards and donations it’s better to choose a platform like us, more peer-to-peer based.

Financial situation

OnePlanetCrowd

Placement campaign: €200 + 1% target amount
Transaction costs: €0.50 (only paid if campaign was a success)
Succesfee: 7%

1%club

Placement campaign: free
Succesfee: 7%
Failurefee: 5%

Chuffed

Placement campaign: –
Transaction costs: €0.50 + 2.9%
Succesfee: –

CrowdAboutNow

Placement campaign: 1% target amount
Succesfee: 6%

Conclusion

Based on these examples I have chosen 1%club. Especially since we get started sooner than expected. With one%club you get your money, either way. One%club is also Dutch, and is centered in Amsterdam. It has the same overarching mission as we do, “doing something good”. Since this is our first campaign as a company ever, and we still have a lot to learn about how to do a good crowdfunding campaign, one%club is a logical option to take. This needs only to be discussed with the team.

Keep you posted on this.

– Bas