Funds raised via various crowdfunding platforms for 2015 were estimated at $34.4 billion. As the trend continues to grow, types of platforms likewise expand: from the original basis of donation and rewards-based crowdfunding, to equity and debt, or lending, crowdfunding. With greater financial involvement comes greater governmental scrutiny and many countries are scrambling to regulate the way funds are raised and/or used in certain transactions.
For rewards-based crowdfunding, many founders start with their end goal in mind without factoring in the logistics of getting the rewards sorted, based on giving levels or other threshholds, and shipped, sometimes wolrdwide depending on the appeal of the product/campaign. That’s where a third party logistics (3PL) partner like Fulfillment.com (FDC) can step in and facilitate the flow of numerous moving parts into one, smooth platform. Much of the generosity (and hence success) of crowdfunded campaigns hinges on targeting the right donor with the right funding request but generosity often begets fraud, and using a vetted 3PL like FDC can also help you avoid such pitfalls.
Successful campaigns run the gamut from cartoonist The Oatmeal’s Exploding Kittens card game (he also helped raise funds to buy and make a musuem out of, and thus prevent the destruction of, Nikola Tesla’s old laboratory) to new tech gadgets. Social media outlets, from Twitter to LinkedIn, offer numerous crowdfunding groups to help newbies navigate the shifting landscape, as well as pair them with investors. Suffice it to say that this fundraising model is not going away and, indeed, is no longer the domain of non-profits but is being appropriated by start-ups and existing businesses alike.
The key to any successful campaign is keeping donors happy, which a 3PL can help you do when shipping any type of campaign reward or product. Contact FDC today to see how we can make worldwide fulfillment easy for you.