The Ten Commandments of Crowdfunding
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.
KeywordsCrowdfunding Financial innovation Self-assessment Recommendations Collaborative finance Community
- Risterucci, F. (2013a, November). Europe should facilitate the emergence of crowdfunding for a new growth model. Le Cercle Les Echos. Retrieved from http://www.lesechos.fr/idees-debats/cercle/cercle-78879-europe-should-facilitate-the-emergence-of-crowdfunding-for-a-new-growth-model-1018765.php
- Risterucci, F. (2013b, June). Crowdfunding: comment préparer sa levée de fonds? Dynamique Entrepreneuriale. Retrieved from http://www.dynamique-mag.com/article/crowdfunding-preparer-levee-fonds.3934
- Risterucci, F. (2014a). Crowdfunding campaign planification dashboard. © FR Prospektiv. Retrieved from www.frprospektiv.com
- Risterucci, F. (2014b). Crowdfunding collection tool. © FR Prospektiv. Retrieved from www.frprospektiv.com