Crowdfunding and its wonders

For a while now we hear more and more news of new companies and products relying on crowdfunding to start their businesses. The idea is simple: raising many small amounts of money from a large group of people; and websites like Kickstarter and Indiegogo are platforms that make the whole process even easier.

It is a way to get investments without having to pay the interest fees that come with bank loans, or giving up equity to your company. You just reward contributors with gifts or discounts in merchandise or services: it is about communities building things together, people feeling part of the business. And, most of all, it is merit based: you have to work really well on your product to convince people to donate money.

Entrepreneurs find the alternative so interesting and reliable that they are coming back to the platforms for seconds and thirds campaigns. While Kickstarter and Indiegogo are open to all kind of businesses, that is a specific platform that deals only with live entertainment. “Queremos” is a Brazilian-based website that crowdfunds concerts all over the country. Funded in 2010 by a couple of friends that were not pleased with the concert scenario in their hometown, the project has grown and produced over 36 successful concerts ever since.

The process is also simple, although a little bit different from the other websites mentioned before. You can get involved with Queremos as a fan, an artist or a producer, meaning you can go beyond funding: you can actually make the event happen. The response from the public has been more than positive, and the co-founders have appeared on TechCrunch, Ted and other media sites.

These businesses models are a perfect example of two great important things in the live entertainment world: engagement and reward. How artists engage with their fans, how the fans can be a part of the process and how they are rewarded… All of these play a very important part. But that is something for another post.