The ten commandments of crowdfunding

Abstract

Crowdfunding is changing the way we think about finance. It is becoming a real alternative for financing creative projects, for start-ups and as seed capital. To date, an extended number of Internet crowdfunding platforms are operational across all continents and have allowed leaders of creative, entrepreneurial and/or social projects, to raise, in aggregate, billions of euros in various forms, e.g. donations, subscriptions, equity stakes, or financial loans. The involvement of project leaders is key to the success of a crowdfunding campaign both in the crucial phase of preparation, and in the course of the campaign. However, the decision to use crowdfunding is at times problematic for potential project leaders. Limited knowledge, lack of time to dedicate to a potential campaign project or uncertainties on how to use the tool may represent barriers. Before even reaching the crucial campaign preparation phase, potential project leaders have to clearly understand the pre-requisites of the crowdfunding concept and evaluate whether it is suitable for their project, personality and interests. For that purpose, The Ten Commandments of Crowdfunding has been developed for potential project leaders to complete. This self-assessment approach includes essential rules to take into account when considering whether to use crowdfunding as a marketing and funding tool.