Crowdfunding is the way that startups are trying to get funding for their venture these days.Recently I interacted with a member from Crowdholding . They have a very interesting concept in crowdfunding. Crowdholding enables people to invest their time instead of money. The company is registered in the UK and operates in Prague, Czech Republic.
Crowdholding connects the crowd with entrepreneurs thus allowing them to give feedback and ideas for future revenue. Basically, 1% of revenue equals 1 million shares, i.e. crowdshares. Entrepreneurs then post tasks on an upvoting forum with each task having a specific amount of crowdshares as its reward. When a task is completed, the crowdshares are distributed out by the ranking of the comments upvoted by the crowd. As of now, in beta, crowdshares last one year, starting the day an entrepreneur/company begins making revenue. In a year, the crowdshares are recycled back to the business to be used again for future work.
This concept helps them to get more people interested as money in not involved. In other crowd funding platforms like indigogo and Kickstarter their is money involved buy they dont even get shares in many cases.
Companies spend on average 15% of their revenue on ads and 20% on research and development. Everyday ads are pushed in our faces by google, Facebook,instagram and what not. Crowdholding uses that revenue to have people crowdsource by validating and innovating the product they are making or selling. And, if they succeed, so does the crowd, who will organically share what you are creating. Word of mouth marketing is far more effective than paid advertising.
IN A NUT SHELL:
How it works?
1. Crowdfounders choose a percentage of future revenue be distributed as a reward. They are calling this reward ‘Crowdshares’.
2. Crowdfounders post tasks they want the crowd to discuss or solve.
3. Crowdholders contribute ideas, solutions and feedback.
4. Crowdholders vote for the best content.
5. Crowdholders are rewarded with Crowdshares based on their activity.
6. Crowdfounders benefit from excellent ideas & Crowdholders enjoy passive income.
Benefits for Crowdfounders
– Minimize Overhead and Management
– Create Buzz
– Build a relationship with the crowd
– Raise capital, preserve equity
– Bypass knowledge-hoarders
Benefits for Crowdholders
– Influence your Favorite Brands
– Earn Extra Income
– Develop a Personal Brand
– Be your Own Boss
– Gain Work Experience
Co-creation and Innovations help both the startups and the crowdfunder. The concept of CrowdHolding which is Co-creation will help startups by getting many innovative suggestions from the customers who are also their funders and also get the work done through Co-creation. This is the future of capitalism
For more details you can contact Ethan Clime, CEO of Crowdholding. email: firstname.lastname@example.org