Crowd funding for non-profit causes
Unlike mainstream crowd funding, crowd funding for non-profit causes such as Dreamfuel leaves backers with at most, memorabilia signed by the athlete being backed, or even nothing at all save for goodwill and the knowledge you have helped fuel someone’s dream. There is no equity to purchase. No new product that can be purchased at a discount before it hits the shelves. Which begs the question, in a saturated market like crowd funding, is there space for a platform focused on non-profit?
If crowd funding offers a largely homogenous product (that is, connecting willing investors with projects), it would only be natural to assume that the competition will be cut-throat. With so many crowdfunding platforms that take on multitudes of iterations available in the market, crowdfunding can hardly be considered a novel concept. In the skirmish for crowd funding supremacy, non-profits like Dreamfuel would be undercut by larger competitors. These platforms already offer larger existing user bases and potentially lower transaction fees, which would probably encroach on Dreamfuel’s own user-base. While users of one platform may also be active on a few others, Dreamfuel would still be reliant on the supporters of non-profit fundraising to a large extent.
Are all crowd funding projects homogenous?
Different people invest on crowd funding platforms for different reasons. Some put money in to get early access to a service and to be trendsetters in their community (think those cool bags and watches on Kickstarter). Some put money in order to earn a return on their investment (think Fundnel, FundedHere and Crowdo). Still some more put money to make themselves feel good that they’ve contributed to a cause that they resonate with. Many crowd-funding platforms try to be strongly associated with certain kinds of fundraising to spark easier recall to get repeat visitors. By building a solid user-base and an active community, crowd funding platforms might become attractive acquisition targets in time to come.