Ever since App.net raised 500k using the same model, I believe that there is a need for someone to build a "Crowdfunding as a Service" app.
Imagine if I too wanted to make a crowdfunding campaign that was completely independent of kickstarter, indiegogo, or any other platform. I would have to build all this functionality on top of Amazon that would take credit cards, store them, charge them when a threshold has been met, and then ship my product out to those people who funded me when manufacturing has been completed.
I believe that if a company were to automate all of this and allow anybody to have their own platform independent crowdfunding campaign on their site, just like PayPal allowed anybody to have their own e-commerce site, they could truly rival the market share of Kickstarter.
Such a model could have tremendous benefits over the traditional kickstarter platform routine we see many crowdfunding sites copy today.
Seems like the challenge there is that you're setting yourself up for the liabilities without the control.
If anyone can use your service, you're going to have fraudsters left and right. If you have to vet them before they can use it, aren't you just another version of kickstarter?
What about a counterparty that just does due diligence? They can dig further and figure out if the team can actually accomplish the task and if the service is vaporware or real.
This could be a simple badge program (for some upfront fixed vetting fee) that lets people say they have been verified.
The problem is that Kickstarter isn't just filtering for viability. Some sort of DD would help say that the project is feasible and eliminate the politics.
That's a good idea. There's room for someone to come in and rate the viability of various projects. A need, really. Even with Kickstarter, as we've seen before.
Good point. I imagine you would have to find the right balance. Somewhere in the middle of anybody can join, and personally reviewing every single applicant.
I don't know a thing about this industry, but I'm sure if you make the applicant validate that they have a business license, and that they somehow prove their real identity, you could keep fraud to a minimum. Even when fraud does happen, I'm sure a company like Amazon (which you would probably build your service on top of) would return the funds back.
Imagine if I too wanted to make a crowdfunding campaign that was completely independent of kickstarter, indiegogo, or any other platform. I would have to build all this functionality on top of Amazon that would take credit cards, store them, charge them when a threshold has been met, and then ship my product out to those people who funded me when manufacturing has been completed.
I believe that if a company were to automate all of this and allow anybody to have their own platform independent crowdfunding campaign on their site, just like PayPal allowed anybody to have their own e-commerce site, they could truly rival the market share of Kickstarter.
Such a model could have tremendous benefits over the traditional kickstarter platform routine we see many crowdfunding sites copy today.