McAllen Chamber of Commerce
1200 Ash Avenue, McAllen, TX 78501 | (956) 682-2871

The Crowdfunding Catapult

Crowdfunding is fast becoming a serious alternative to traditional financing sources for the production of innovation, new products and content. Crowdfunding is asking a crowd of people to donate an amount of money for a specific cause, or project, in exchange for various rewards. In most of the projects, backers (people that support a project) donate to the project in exchange for tangible, non-monetary rewards such as the finished product, a t-shirt, or a thank you note.

In addition to funding, these platforms allow inventors and entrepreneurs to assess the interest of the public in the idea. In simple terms, if the project does not generate interest or backers, it could be a sign that the project will have problems entering the market. It could be a sign that the project needs more refinement. During this exercise, backers can provide useful feedback about the project and help polish the final launch.

There are several websites that allow creators to request crowdfunding. The most famous one is Kickstarter.com, but you may also consider indiegogo.com, rockethub.com or fundable.com. Most of these sites charge a commission from the obtained funding – normally the rate ranges from 4 to 7 percent. Before deciding which site to use, the creator needs to consider the commission the site charges, the focus of the site and the amount of exposure the website creates for itself.

The Crowdfunding Catapult in a new initiative offered by the McAllen Chamber of Commerce to assist inventors and entrepreneurs prepare successful crowdfunding campaigns. The campaign should include: a scope, rewards, timeline, video, and a project page. There is no charge for the assistance, but the entrepreneur needs to participate in a venture/product assessment to define the maturity of the idea. If you want more information on crowdfunding please contact Jorge Sanchez at (956) 682-2871 or jsanchez@mcallenchamber.com