In the age of social networking, if you need money for an art project or for a new business, friending could also mean funding.
Chris Young wanted to shoot a feature film presentation. The plot: dude’s car breaks down in the desert, no mobile signal, not a soul in sight. Parched, our hero stumbles into a lonely gas station where he makes a disturbing discovery. Someone, or something, is chained to a backroom wall.
Bankers didn’t get it, but people on Twitter, Facebook, and LinkedIn did. Within eight weeks people donated $11,350 (more than his goal) so Young could shoot the 3D live-action short. What did those 92 people receive in return? Depending on how much they contributed, Young’s collaborators were given special mention in the credits, invited to the first screening and party, or announced in the main titles as Executive Producer.
Welcome to the world of cloud funding, also known as crowd source capital or social funding, where entrepreneurs combine social networking with project fundraising.
How it Works
Unlike peer-to-peer microlending, which was introduced to the U.S. in 2005 by Kiva, social funds aren’t paid back. Unlike debt funding from banks, social funding doesn’t require you to pledge collateral or offer personal guarantees. Unlike equity funding from venture investors, you don’t have to give up equity or control.
See full article at: Cloud Funding Offers More than Pennies from Heaven : Money :: American Express OPEN Forum.
