Fifth anniversary: Fund It investors show wisdom of crowd
The Irish crowdfunding website has a 71% success rate for projects in creative areas
Aoife Scott, left, whose debut album appeared on Fund It, with her cousins Danny O’Reilly and Róisín O in Kilmainham Gaol as part of RTÉ’s 1916 commemorations.
Since 2011 it has established itself as a leading platform for crowdfunding – particularly in the areas of music, performance, film and art – giving rivals Kickstarter and Indiegogo a run for their money.
For Ireland’s creative community, Fund It has become much more than a place to try to raise capital to get a project off the ground. It is where hopefuls can sharpen their ideas, focus on goals and build a network of people who believe in and support their vision.
Fund It is run by the Business to Arts charity, whose goal is to nurture creative partnerships between the worlds of business and arts and culture.
Fund It encourages companies and investors to support artistic endeavours, whether it be a singer’s new album, a new Fringe theatre production, or a short feature film.
Andrew Hetherington, chief executive of Business to Arts and Fund It, says the site has raised more than €3.6 million, and he doesn’t see the bubble bursting just yet. Fund It has a success rate of 71 per cent, making it one of the world’s most successful reward-based crowdfunding websites.
“We’re lucky that we have a high success rate amongst comparable websites,” says Hetherington. “It’s nice to see projects come up on the site and then go on to greater things. It’s amazing what a couple of thousand euro can help to happen, and where a film might end up in international festivals, or where a musician might get critical success, or where people who have an idea for an event can bring it to life.” Part of Fund It’s success is the loyal audience the platform has built among the creative community. And it doesn’t just leave its users to fend for themselves.
“We have moderators who give users boot camps and help them craft and present and plan for what can be an intensive time in terms of fundraising and project delivery,” says Hetherington.
Linda Allen, who crowdfunded her book, See You in Two Minutes, Ma!, through Fund It, says: “You have to have an idea that is grounded in reality, because you are making a contract with people who you don’t necessarily know, that you’re going to produce something, so you have to know that you’re going to follow through.”
“You’re going to need some level of passion, some level of structure – you have to do the groundwork, because otherwise people could be pulling ideas out of the sky.”
“I didn’t set out to become an author and write a book – I was just responding to something tragic that happened in my life, that turned everything upside down.”
Having submitted the manuscript to several publishers, Allen decided to go down the crowdfunding route. When she reached her target of €6,220, she felt “massive relief, because I bravely or stupidly had paid the downpayment to start the publishing process, really believing that I would get the funding”. Allen will launch the book on May 11th in Dublin.
Some Fund It projects go on to greater things. We Banjo 3, who funded their album through the site, performed recently for US president Barack Obama, while the short film Breathe will be screened at the BFI Flare Festival.
But the people who pledge money to these projects are not motivated by the expectation of huge returns on investments.
“We’re reward-based. We’re looking for our users to offer genius rewards. There are other types of crowdfunding, such as equity-based or loan-based, but they don’t have the same traction in the creative industries,” says Hetherington.
It is up to the users to come up with interesting ideas to reward their supporters.
Guest passesAoife Scott Carry the Day
“The great thing about crowdfunding is that people feel involved in your project, they feel they made it happen,” says Scott, who performed yesterday with her cousins Danny O’Reilly from the Coronas and Róisín O on RTÉ’s commemorative programme, Centenary.
Next October, a crowdfunded event, Zeminar, will take place in the RDS, after hitting its funding target of €15,000. Zeminar is the brainchild of Damien Clarke, who is currently studying for a doctorate in counselling psychology at Trinity College. It is aimed at young people aged 15-18 who are looking for inspiration and guidance as they go into adulthood.
Last September Bank of Ireland rowed in to support Fund It with a three-year investment and partnership deal, which will allow the site to develop its technology and work closely with its entrepreneurs.
“We’re going around Ireland and giving people masterclasses with previous project creators to show people how to go about crowdfunding,” says Hetherington. “We want to see more creative ideas and people’s ideas come to life.”
* This article was corrected at 12.40 on Tuesday, March 29th