Skip to main content

Top 50 Crowdfunding Campaigns

Image
By
The chart below results from an analysis of the Top 50 crowdfunding campaigns on Indiegogo, 'Top' measured by total dollars raised. The X axis shows the dollar amount of the reward or  perk ($1 to $10, $11 to $20, etc.) The Y axis shows the cumulative number of rewards/perks collected across all 50 campaigns, so the chart shows that, for the top 50 crowdfunding campaigns on Indiegogo, 100,000 rewards/perks with a  value ranging from $1 dollar to $10 dollars were selected by supporters. 
Normally, we might expect this chart to be convex, declining steadily from $1 to $5000. This is not what we see, however. It seems that people are willing to donate small dollar amounts, up to about $50, and then contributors look to donate at least $100. What's going on here? To explain this phenomenon, classify backers into two categories:
1. The first category are people who simply want to help. They donate less than $50 dollars and do not donate for the reward (normally a T-shirt, poster, etc.) They are “angels” who simply want to make the thing happen.
2. The second category are people who actually want the service or product being offered. These are the core customers for whatever the future product or service is.
For the full report ($129.00) and a description of the crowdfunding tactics that follow from this analysis, see: https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=77A2P3AZJ3TA2

Questions? Contact us at wmc@nationalcrowdfundingservices.com. 
Data collection and analysis by:

Hanna Kim, University at Buffalo, The State University of New York, May 2015
Bachelor of Science in Accounting

Ziqi Chen, Master of Science in Finance, August, 2014
Johns Hopkins University Carey Business School 

Frank Catanzaro
BSBA in International Business The Catholic University of America May 2014

NCS Interns, Summer 2014

Edited by William Michael Cunningham
Labels:

Comments

  1. Kevin EppsJuly 29, 2015 at 10:45 PM

    i have been following your news and information reporting and recently launched www.filmbread.com is a crowdfunding platform for film, content creators, digital storytellers. Thanks for sharing insightful and invaluable info.

    ReplyDelete
  2. blogerOctober 13, 2015 at 9:09 AM

    This comment has been removed by the author.

    ReplyDelete

Post a Comment

Popular posts from this blog

Top 50 Crowdfunding Campaigns: Fifty Most Successful Crowdfunding Campaigns

By
  Top 50 Crowdfunding Campaigns: Fifty Most Successful Crowdfunding Campaigns Kindle Edition https://www.amazon.com/gp/product/B00RKK4NL0/ref=dbs_a_def_rwt_bibl_vppi_i0
Post a Comment
Read more

Crowdfunding Accounting 101 - Revenue Recognition in Crowdfunding

By
A start-up using crowd funding to create a product is different from a normal company. The start-up has cash inflows from donations but does not have a product, yet. In this situation, we recommend using completed-contract method to recognize revenue. Under this way of thinking, we assume the start-up is akin to a project or a long-term contract. The crowdfunding company will find it difficult to estimate the revenue from crowdfunders and, hence, the cost of rewards or perks. Under International Financial Reporting Standards (IFRS) and GAAP guidelines, if the firm cannot reliably measure the outcome of the project, revenue should be recognized based on contract costs. These costs should be expensed when incurred. Profit is recognized only at the completion of the project. In summary, for crowdfunding companies, revenue, expense, and profit are recognized only when the crowdfunded product is actually manufactured. 1 For example, assume that AAA Corp. wants to manufacture bicyc...
Post a Comment
Read more

8 Tips For Launching: Crowdfunding For Startups

By
As the article notes, "For a people who revere startup culture and the idea that one can bootstrap one’s way to business success, we seem to prefer the TV version to the real thing — especially as of late. It turns out that new business creation recently approached its 40-year low. Banks are retaining their Great Recession-era tight-fistedness and the costs of education, housing and healthcare continue daily to expand beyond the ability of most Americans to keep pace... Due to these factors — along with the legalization of equity crowdfunding accomplished via the passage of the JOBS Act in 2012 — crowdfunding has arisen as a means of raising startup funds. You may only be familiar with crowdfunding in the context of all the medical- and disaster-based campaigns that have been making the news lately, but crowdfunding is a viable way to raise money for businesses as well." See the full article at:  https://www.merchantmaverick.com/crowdfunding-for-startups-8-tips-you-s...
Post a Comment
Read more