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Crowdfunding, a multi-faceted tool
Red Ochre team attended an interesting RSA event that discussed the future of crowdfunding. Two topics highlighted at the event particularly resonated with us.
The first is how crowdfunding finds itself at the intersection between a finance strategy, a market research tool and a social voice platform. Starting from the latter, during the discussion crowdfunding has been described as a modern patronage tool; backers use money to endorse projects they believe in. Other examples discussed included local governments match-funding projects located in their area and successfully backed by citizens. Crowdfunding represents indeed a great market research tool that can reveal the interest in and market potential of initiatives. Last but not least, the platform is a strategy to raise money.
Another interesting topic discussed was trust. How do you know where your money is really going? Besides all the due diligence work done by crowdfunding platforms, this point stresses once again the importance of building strong networks before launching a crowdfunding campaign. Most backers are individuals that know you, directly or indirectly, and consequently inclined to trust you.
Interested in crowdfunding? Keep an eye on future newsletters for details about a Red Ochre crowdfunding training in November