How does it work?
At its core, a crowdfunding platform like Thundafund allows a large number of people to each back a new idea or project by pledging with a small amount of cash. Project creators present their idea on the Thundafund platform and in return for various levels of financial backing; they offer ‘in-kind’ rewards – produced through the project itself. Many grains make a sand castle – and soon these small amounts add up to the capital required.
Enter, the crowd effect.
In essence, the project creators, with their idea or project, sell it before producing it. For example, local musician, Verity Price – had over 300 people backing her by pre-buying her album, Journey, which allowed her then go ahead and make the physical recording of it. Their rewards included invitations to her launch and signed copies of the album itself.
As a massive success story, globally, the ‘Pebble Watch’, launched on the US based website Kickstarter, was a prototype watch that the project creators put out there and asked people, “If you like it, back us.” Over 68 000 people liked the idea and pledged their cash for the promised rewards offered. The ‘Pebble Watch’ founders needed $100,000 – and within 30 days, Pebble had raised $10.27million.
No debt owed, no equity given away. The crowd told them they thought it was a cool idea.
Lately, crowdfunding has gained significant spotlight via well-known actors crowdfunding their own movies. Veronica Mars creator Rob Thomas and actress Kirsten Bell were 285% funded for The Veronica Mars Movie; Zach Braff 155% for Wish I was Here – both on Kickstarter. And currently, James Franco for Palo Alto Stories on IndieGoGo.
With some substantial outcry as to why they have turned to the crowd for funding, it is simple: Actors often lose control of their projects and are at the beck and call of the producers and directors – with crowdfunding they have the opportunity to make the decisions and keep creative control. And for us, the people out there, the crowd, – we get to get tickets to the premier, star in the movie, really feel like ‘we’ made this happen – not a select board with all the money. It’s the democratisation of the creative process; we become part of making the world as we would like it.
Alongside this substantial funding, 1st time backers of the acclaimed movie projects also moved to backed other projects on the websites. Crowdfunding is all about people been given the opportunity to become part of the creative process, whether it’s a movie project or a food garden.