GoFundMe VS GoGetFunding: Which is a Better Crowdfunding Platform?

They have a network of over 10,000 institutional and individual accredited investors who are averaging $15,000 investments. Consider doing the same…rewards-based crowdfunding, followed by an equity-based campaign that leverages the first campaign’s momentum. In my newest book BOLD, I have a whole chapter that teaches you how to run a “reward-based” crowdfunding campaign. It’s a mechanism I’ve personally used to raise $1.5M for Planetary Resources and $950,000 for the Global Learning XPRIZE.

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This system is largely designed to deliver accountability and transparency to the U.S. government, Congress, and the U.S. taxpayer. The other source of official finance—DFIs—should be more willing to take risk but again defaults to seeking safe, higher returns on investment. The risk-return calculus for DFIs is too skewed in seeking private equity-type returns when they could take smarter risks and provide the type of investment needed to help bring innovations to scale. Funding to support innovation has been somewhat lopsided, with significantly more resources provided to the grand challenges model than to the other models discussed.

There are no complicated procedures involved in using these platforms, and you would be able to start raising capital within minutes of your registration. You find everything on their website, which makes for an enjoyable experience overall. GoFundme makes it easy to help others who are having difficulties during challenging times by providing access to an online platform usable on either your smartphone or desktop device. GoFundMe will charge you a 5% fee from the total amount raised in your campaign – This percentage is taken off the top of every donation. One of the most significant benefits of using GoFundMe is that there are no limits on how much you can raise as long as your campaign reaches its target figure. GoFundMe is great for personal things, but I never recommend for products or business projects.

Suitable for creative projects.

Teams worked in silos, and most of the senior managers were pursuing their own agendas with little regard for what others were doing. The Pono team next came to Crowdfunder to raise equity and allow their community to also become shareholders. Based upon the massive market interest, they then raised $10.2 million in equity funding for Pono music…in 12 days.

Even with greater evidence of impact, a larger investment implies greater risk. At present, GIF’s portfolio is more weighted toward Scale and Test & Transition (GIF’s terms for the second and third stage of funding), suggesting a slightly greater risk tolerance than DIV. GIF can take greater risk because it is backed by multiple governments and because it is an “off-balance sheet” fund; its risk is borne by GIF alone. While DIV should be applauded for its pioneering approach, it still reflects the overall risk-averse nature of the U.S. government by concentrating more on early-stage pilot projects or funding for research, such as randomized control trials.

One of the best things about GoFundMe is that it has a high success rate with donors. You might have to send a message to your donors explaining that your campaign is currently being reviewed and asking them for additional gogetfunding contributions. The fund will invest in about 25 startups at $100,000 in the form of a convertible note. COVID forced the project to skip a year in 2021, but submissions are now being accepted for 2022 until August 8.

Grants and investments supported by these models have yielded measurable impact and changes to the way donors program their development assistance. The grand challenges concept has existed for some time in global development, but its most recent incarnation came in 2010 when USAID launched Grand Challenges for Development. These are a series of time-limited (five years) challenge funding programs tailored to address a specific development challenge. USAID will frequently partner with donors—official or nongovernmental—to provide small grants for a large range of innovations that hold the potential of solving or addressing identified problems. Since 2011, USAID has launched 12 grand challenges, including scaling off-grid energy, fighting Ebola, powering agriculture, saving lives at birth, and supporting early education. Through partnerships with other funders, these grand challenges have provided $534 million in grants to 786 innovations.

Separate from USAID, the Canadian government launched Grand Challenges Canada, which provides a complement to USAID’s work and other donors in this space. For the public sector, donors can play an important role in helping generate additional resources that could scale up innovations focused on improving the delivery of social services. This could include work targeting domestic resource mobilization, which includes efforts to increase the amount of government revenue available for issues such as the delivery of social services.