“We believe that any business today must focus on improving lives of the underprivileged, and the only way to do that effectively and in a sustainable manner is through profits generated by adding value to backers and customers. "
DOVER, Del. (PRWEB) October 25, 2018
Crowdfunding has become extremely popular of late, with the smallest of start-ups, innovators and the biggest of brands leveraging its power to launch and scale ideas. Kickstarter and Indiegogo are two of the most popular rewards based crowdfunding platforms that have collectively raised over USD 5.5 Billion since inception. Research shows that the most funded campaigns are innovative technology products, and those that offer the best perks or rewards for early backers.
While sites like Gofundme are for personal / altruistic fund raising, even platforms like Indiegogo have been used effectively by brands to leverage the crowd’s conscience and make a profit while making the world a better place. Brands, start-ups and innovators leverage rewards based crowdfunding platforms to tap in to the innately altruistic and prosocial nature of human beings to help fund projects that share a percentage of the funds raised by way of donations or perks claimed towards social causes. Some campaigns share a percentage of funds raised, while some set aside exclusive social perks like a recently launched campaign for a Balance Bike on Indiegogo by Bril. This campaign that is running a global crowd-funding pre-launch campaign on Indiegogo for a baby balance bike, has rewards for backers and two social perks. Backers can choose to donate USD 1, which Bril, the Indian stationery and toys family business that is running the campaign, will use to give a poor child school stationery products that will last for 6 months. A $5 contribution will go towards a free Brilrider Balance Bike for an underprivileged child each time the contributions to that perk reaches USD 100.
“We believe that any business today must focus on improving lives of the underprivileged, and the only way to do that effectively and in a sustainable manner is through profits generated by adding value to backers and customers. Crowdfunding helps brands do that by reaching out to people across the globe ” says Jayaram Rajaram, Bril’s Director
While the world debates whether capitalism or socialism is better, some companies are quietly tapping into the crowd’s conscience to make the world a better place while also making a profit. Could we call this capitalistic socialism or maybe socialistic capitalism?