At Pledgecamp, we are aiming to shake crowdfunding to its very core. We want to bring in positive disruption to the system by incorporating blockchain technology for security and accountability. Our team has previously raised millions of dollars on Kickstarter and has become among the top 1% most-funded crowdfunding experts on the platform. As such, we are well aware of the issues plaguing traditional crowdfunding platforms. So, if you are a creator, why should you opt for our platform instead of a traditional one like Kickstarter and Indiegogo? Let’s take a look.
Getting Listed
To get listed on Kickstarter, you must reside in one of 22 countries, equivalent to only 11% of countries in the world. Plus, your project needs to follow a strict list of rules and regulations. Since our platform is decentralized, no one will be setting unreasonable rules and restrictions to prevent you from listing your project. The rules governing the community will be set by the community themselves.
Reduced Listing Fees
Both Indiegogo and Kickstarter use Stripe for their payment processing. The fee system of both these platforms is as follows:
Kickstarter charges a 5% listing fee and Stripe credit card processing charges of 3% + $0.20 per transaction.
Indiegogo charges a 5% listing fee on contributions and Stripe credit card processing charges of 3% + $0.30 per transaction.
In Pledgecamp, we will charge our creators 0% listing fees, provided they set the “Backer Insurance” at 50%.
Let’s gain a quick understanding of what backer insurance means before we go any further. When a backer sends their funds to a creator, a part of it gets locked up as escrow in the smart contract. This escrow is called backer insurance. The funds are unlocked in escrow until the creator fulfills some predefined milestones. This mechanism has been put in place to protect backers from scammy creators.
At Pledgecamp, the backer insurance and listing fees are inversely proportional to each other. In other words, the more the backer insurance, the lesser the listing fees.
As a creator, if you are confident enough in your project to set high backer insurance, then you can list your project for free.
Backer Insurance will attract more funding
Out of 142,301 projects that have ended up on Indiegogo, only 9.3% raised 100% of their goals or higher. On Kickstarter, more than 50% of the projects didn’t meet their funding goals. What this goes to show us is that the backers are afraid of crowdfunding a project. After all, nobody wants to get scammed, right?
By leveraging smart contracts and backer insurance, the backers will be able to keep the creators accountable for their actions. By knowing exactly how their money is going to be used, we will be organically attracting more funding and more backers into our ecosystem.
Leveraging our Market Network and Smart Crowd
Crowdfunding can be a very hectic process. It is a chore just to get enough eyeballs on your project since the market is oversaturated. From our experience, we have seen several creators led astray by concentrating all their