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A million dollar idea, but not a dollar to your name?

January 17, 2013

So, you’ve got yourself an amazing idea, huh?

One that will solve world hunger, halt global warming, and/or see you added to the National Business Review’s Rich List?

Think the only way to see your idea take flight is to hit-up the rellies for a loan, or throw yourself at the mercy of your bank manager?

Well, yeah, you could try and get your moolah that way.

Or, you could try crowdfunding.

More and more budding entrepreneurs are turning to the World Wide Web to finance their projects.

Crowdfunding

Would you believe me if I told you there are people out there in cyberspace willing to give you money, to support your cause?

Well it’s true!

Crowdfunding involves people networking online and pooling their money together in order to support efforts initiated by other people or organisations.

While these people are willing to give you money, they do expect to be acknowledged and/or rewarded in some way. Whether it’s an acknowledgement on your website, or a song dedicated to them, or whatever it is that is mutually agreed upon.

Pledge Me

Did you know there’s a crowdfunding platform dedicated to creative kiwi projects?

It’s called Pledge Me, and it links up ‘creatives’ (the idea-generators) with ‘supporters’ (the investors).

When I caught up with Pledge Me co-founder, Anna Guenther, she had some sound advice for people who want to use Pledge Me:

“Make sure that people can really see the idea happening and also wrap around that the clear rewards people are going to get out of it. Know who your crowd is and figure out how to inspire them to help you.”

Making a pledge

In order to make an online pledge (a business pitch, if you will), you need to have:

    1. An idea (a clear and convincing one!)
    2. A goal of how much money you need and when you need it by
    3. Some cool incentives for people pledging on your project (what’s in it for them?)
    4. A network of people to promote your project to.

Check out this video on what crowdfunding is:

3 Comments leave one →
  1. January 21, 2013 1:08 pm

    Thanks for this post, i recently started my own company and funding was a big issue with the banks wanting collateral; and being young i did not have any (I wish i’d come across your post earlier). It would be great to see a New Zealand based version of this, as well a bigger push to promote and encourage young entrepreneurs, which i’m sure the site would also help with.

    • annapledgeme permalink
      January 25, 2013 7:57 am

      Hey Tim,

      PledgeMe is NZ based – so we totally know how you feel as a young start up :) Let me know if you’d ever like to chat about crowdfunding, we’re here to help.

      Cheers
      Anna

      • Daniel W permalink
        January 28, 2013 11:46 am

        business incubators like creativehq.co.nz are also great for getting ideas around funding and development.

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