Innovations

Crowdfunding

Code

OB1.34

Title

Crowdfunding

Case study/reference

http://www.fomentosansebastian.eus/donostiainn/images/Servicios_proyectos/descargas/Innovate-Social-Innovation-Case-Studies.pdf

Recommendations for the design

Crowdfunding is a trend that attracts lots of people willing to fund projects that are promising. It could be very successful when resources are limited. In periods of economic recession when public funding for Public Transport Authorities and Operators is limited and not enough to support services, the local community might be able to contribute in order to keep a service running or implement a specific project. Concerning the initiator, Public Transport Authorities and Public Transport Operators can assume this role, while the geographical scope of a crowdfunding campaign in Public Transport should probably have a regional scope, as the chances of being successful increase, when it addresses the needs of the actual audience addressed (Public Transport users and non-users) that will benefit from the fund seeking idea. Crowdfunding is suitable for early stage innovations to assist their market take up. It is recommended to use them for short/medium-term well focused project resulting in tangible (visible) and easily verifiable results.

Recommendations for the implementation

Clearly determine meaningful projects for people to invest, showing fully awareness that this is a well-planned project, which is worth the investment by users.
Build a straight forward platform easy to explore and provide accessibility for people with special needs.
Improve-enhance platforms’ visibility and public engagement through a strategic use of Social Media.
Create a video explaining the project and the idea behind crowdfunding.
Appeal to existing fans of these kind of platforms, but also create awareness campaigns to reach everyone else who is new to this concept.

Brief description

Foster the implementation of Public Transport initiatives/tangible implementation through crowdfunding process.

Full description

Crowdfunding is the practice of funding a project by raising contributions from citizens/users. It has been mostly used through websites, around the world providing a platform where people can upload their work/plan/idea and receive funding in order to complete their work. Sandawe is a clear example of the new fundraising channel based on public engagement: “crowdfunding”. The Belgian platform facilitates fund raising for comic designers by providing a collaborative platform for crowdfunding. For each project, Sandawe calculates the budget needed to support the book launch. Then, the project is presented and the people decide whether the project will be funded (investments can start from few euros). In exchange, they have a share in the profits along with Sandawe and the project presenter by receiving 60% of net gains until they recover their investment and 40% after that point, until 5 years after publication. They also receive exclusive items (for example collectables) and enjoy moral benefits from contributing to the realization of the project that they liked.

CIPTEC score

3.1