fundraising

Announcing our angel funding round

Announcing our angel funding round

Today is an incredible day. I’m very pleased to announce that we’ve closed a funding round with a couple of great investors and are excited to take an important step in our journey, which will include the launch of a new version of the StartSomeGood platform in June.

Leading the round is Trimantium Capital, a Melbourne-based technology and impact investment management company led by serial entrepreneur Phillip Kingston, who is joining the board. Phillip specifically and Trimanitum generally have incredible experience taking companies to scale and are at the forefront of the impact investing and social enterprise movements in Australia. We couldn’t have better or more aligned partners and we’re very grateful for their support for our vision.

At milestones like this it’s impossible not to look back at where we started.

Choosing the worst runner

Runner - The Happy Rower on flickrYou are running coach, the analogy goes, and you have to choose between two runners. One of them has textbook form, smooth and efficient in his stride. The other is a mess, straying out of his lanes, arms and legs flailing unattractively. Despite this they are neck-and-neck at the end of the race. Who would you want to coach?

You would choose the worst runner, the guy with terrible form but who somehow managed to stay in the race despite this, because your coaching has the possibility to make the greater impact. You can’t do much with the guy with perfect form; he’s just not fast enough. But the sloppy guy, with refinement and coaching, might just be able to be really fast. In sporting parlance his ceiling is higher.

I feel like that’s where we are at with StartSomeGood right now, as we stand on the brink of unveiling the new version of our site to the world.

It’s been two years since the first version went live and, simply put, we have done almost everything wrong.

We built the first version of the website with only conceptual feedback from our target market – we didn’t show them the actual site until it was live. We didn’t talk enough about what we were doing while we were building it, and so failed to prime the community for our launch. We didn’t even have a LaunchRock page up to collect emails, so we started with zero on day 1. We put far too much time and effort into coaching efforts which didn’t sufficiently move the needle. We recruited the wrong people and compensated them in an unstrategic fashion, giving away more entity than we should have to people no longer with us.

We failed to test or monitor a lot of what was happening on our site. We were so tech-resource constrained I think it was too depressing to constantly focus  what couldn’t, in the short-term, be fixed. We just worked harder and harder to connect with and serve entrepreneurs, but these efforts couldn’t all be scaled and didn’t overcome all the shortfallings of the site itself. This lack of attention to metrics and testing meant we didn’t have as much data or insight as we should have when we became (slightly) less constrained in our tech resourcing and were able to invest in this new site.

So many mistakes.

But we’re still here. Along the way we listened, we learned. And now we are ready to show you some of those learnings embodied in this next iteration of our platform.

We interact constantly with our community, social entrepreneurs and community benefit organisations looking to raise funds in a new way. We’ve been intimately involved in over 300 campaigns now, and have seen what has and hasn’t worked. We’ve been knocked back by organisations we wanted to work with and have always asked why. We recruited an amazing advisory committee LINK who have helped stretch and inspire our thinking, as have a wide range of informal advisers and friends.

I can’t claim that we’re doing it all perfect now because we’re not. We’re busy and over-stretched and making compromises. The new version hasn’t had enough testing or rounds of user-feedback, but it’s had infinitely more than the first version. We would have done more but our updated UI/look-and-feel was done probono by Source Creative, who were lovely and generous and did a great job but didn’t have capacity for ongoing testing and additional rounds of tweaks, which was fair enough. It’s often better to put something out there and learn from how people actually use it anyway.

Raising a small amount of family-and-friends investment has allowed us to get this new version shipped and we’re committed to being much more focused on testing and analytics than we were with the first version.

There are a number of key improvements I’m excited to show you: •    We’ve simplified our navigation and lightened the feeling of the site, giving it a cleaner and more modern look •    We’ve put more emphasis on success stories and user-interactions, highlighting the people-powered nature of the site. •    We’ve added alternatives to paypal, initially just for US ventures but coming soon for everyone else. •    We’ve upgraded the venture dashboard, to help you launch and manage campaigns and; •    We’ve improved the how to info and resources on the site to educate people about how to succeed at crowdfunding.

So where are we as a business? I truly believe we stand on the brink of great things.

Despite our abundant shortcomings we have built a vibrant community of entrepreneurs and changemakers. We have 10,000 subscribers to our newsletter, 10,000 followers on Twitter and 30,000 followers on Tumblr. We have successfully funded over 130 projects in 22 countries, and this is just the beginning.

We have a fantastic, talented, passionate team spread Australia, the US, England and Sweden. Everyone is involved because they believe in our mission and are driven to scale our impact and help changemakers around the globe. You can meet our newest colleagues here.

We have just announced a number of exciting partnerships, including with ING Direct who have committed significant funds to social entrepreneurs running campaigns on our site, and with the Global Food Startup Challenge, for which we are the global crowdfunding partner.

In terms of our financials we have started slow but all sites of our sort do. Crowdfunding is boom or bust. Once you pick up pace it tends to accelerate, but the vast majority of sites never even reach the point we are at, remaining extremely limited in terms of scope or traction.

I can understand the skepticism some feel about whether there is enough room for StartSomeGood in an extremely competitive crowdfunding market but I know we provide a unique service and truly believe we are the best home for most social entrepreneurs looking to raise money from their communities. The creative crowdfunding platform are simply not built with nonprofits and causes in mind. Our success rate (comparable with the creative crowdfunding sites), incredible partners and growing traction are strong positive indicators for this belief.

So if you’ve been holding off on getting your idea out there and launching a campaign for any reason I hope you’ll reconsider and give our site a try. If you launch before April 2 you’ll be in the running for the ‘Like-Off’ we are running, with a bonus $200 grant to the project with the most likes during a 24 hour period starting at midnight April 3 Greenwich Mean Time.

Please check out the new site and let me know what you think.

Onwards and upwards!

Image by The Happy Rower made available on a Creative Commons license via Flickr.

Peers vs Crowds

Language matters. It frames our expectations and can limit or expand our thinking. I’ve written before about my preference for the term “peerfunding” over “crowdfunding”. More recently I’ve begun to see a spectrum of activities which can be more crowd or peer-focused, making both terms relevant but the distinction important.

To me, crowdsourcing is a competitive process – the crowd is either helping select amongst alternatives or competing to win an award. As an example, GeniusRocket is a design crowdsourcing site – their community competes via the submission of ideas and proposals, to have their work selected and be paid by GeniusRocket’s clients.

The Pepsi Refresh Project is another example of the crowd in action. The crowd is helping Pepsi select where to invest its philanthropic dollars. It’s crowdsourcing because it’s a large mass of people who have little-to-no contact with each other making submissions, in the form of votes here and designs with GeniusRocket, to the organizer of the contest.

What Creating the Future is doing, on the other hand, is peersourcing. They have invited their community to co-create the criteria and process of the scholarship fund they recently raised funds for on StartSomeGood.

In this instance the participants are not an anonymous “crowd” and they are not competing with each other. Instead they are co-creating something together. They are peers, colleagues, collaborators. Whilst the number of responses isn’t large the quality of thinking behind the responses makes them enormously valuable.

If we simply refer to Pepsi Refresh, GeniusRocket and what Creating The Future are doing as “crowdsourcing” I think we are missing a key differentiator between them. I am loath to create more jargon but I fear that calling collaborative efforts like Creating The Future, or the way Beth Kanter aggregates contributions and best practices through wiki’s, Facebook and her blog crowdsourcing is to miss the most important aspect of these approaches: that they build a community of peers and invite co-creation, rather than setting up the “crowd” to compete for the organizers favor.

I believe what we and our ventures do at StartSomeGood is peerfunding rather than crowdfunding. On StartSomeGood, as with other fundraising platforms for entrepreneurs and creatives, the majority of the funding comes from the fundraisers existing community. Supporters feel an affiliation for the project and affection for the organizer, or connect to the cause via a shared identity or experience. These funders are not a crowd, they are peers, and they will be your most important asset in creating change.

I’m thrilled to see a project which was successfully peerfunded on StartSomeGood now move on to peersourcing the details of how the scholarship will work. Check out their thinking so far and feel free to contribute!

What Apple cares about

Over the past couple of weeks two interesting and inter-related controversies have sprung up which reveal in stark terms Apple's lack of support for non-profits and values as a corporate citizen.

Beth Kanter, the nonprofit web guru, started drawing attention a couple of weeks ago to the iPhone's lack of support for donation apps.The essense of the issue is that apps cannot process donations natively. The best they can do is link to a charities website for people to make donations. This is clearly a more complicated process and we know that every addition step required to make a donation loses a significant proportion of your potential donors.

Apple's apparent reason for the ban (another example of Apple's restrictive approach to the universe of apps that runs on their devices) is the difficulty involved in verifying genuine charities. Jake Shapiro pointed out back in June that 'the excuse that “Apple doesn't want to be held responsible for ensuring that the charitable funds make it to the final destination” is a cop-out. Google Grants has tackled this already, and organizations like TechSoup and Guidestar do a sophisticated job of authenticating nonprofits and charities worldwide. Apple, of all companies, can’t credibly say it’s not up to the technical and logistical challenge.'

Following the earthquake in Haiti Apple itself requested donations through an iPhone app, raising hopes of a change of policy which has not been forthcoming. Earlier this year Paypal introduced the option to make a charitable donation through their iPhone app, with verification handled by an outside company MissionFish. Two months later they were forced by Apple to shut it down.  One possible issue may be that Apple takes 30% of revenue from the app store, an proportion way beyond what is considered acceptable for donation processing.

This is all pretty annoying in its own right, and you should certainly support the petition currently being run on Care2 asking Apple to rescind this policy, but just how galling it is was brought home to me by another news item last week.

A group of parents are crying foul after being hit with unexpected bills from their children playing games on the iPhone and iPad. The games, such as Smurf Village, are clearly designed for kids, allow you to skip over the hardest stages of the game by purchasing, for real money, in-game items such as Smurfberries. It is even possible to purchase a whopping $59.99 worth of Smurfberries in just two clicks. Other kids games sells virtual items for up to $100. One reason for this is that you only need to log into your iTunes account every 15 minutes to make purchases. So if a parent buys this game then immediately hands the device to their child  there's a window in which new purchases can be made without any need to re-enter account information. However several parents are reporting that they carefully waited for the required amount of time before allowing their child to play and still ended up with a nasty surprise when they saw their bill.

So on the one hand we have a situation where it's impermissible to make an in-application donation to a nonprofit organization doing good in the world, while on the other it's so easy to spend money inside an application that it's literally child’s play. There's no possible justification for this hypocrisy, and continues a trend of Apple disregarding the nonprofit sector. When I approach Apple for sponsorship when running Vibewire about five years ago I was told that Apple had a corporate policy of not supporting nonprofits or making any donations. Their job was the maximize profits, and shareholders could decide how to disburse those profits. So perfect right-wing corporatism in other words. And, indeed, they have been named one of America's least philanthropic companies.

To me this issue shows without any doubt Apple's true corporate culture. To the extent that they have involved themselves with nonprofits or made positive moves like decreasing the environmental impact of their devices, this can only be seen as cause marketing, something they felt they needed to do for their brand and sales, not something driven by a belief that business has any role beyond profit maximisation.

They sure do make pretty things though.

Sign the petition asking Apple to allow donations within their apps.

The new world of peer-funded projects

Цвета музыки (Colours of Muzik)

I have a confession to make. I'm a crowdfunding addict. Or as I think of these emerging platforms: peer-funding. For the first time projects can be funded by those who share the passion and vision of the creator. In other words, not the anonymous crowd, but your global peers getting together and saying "let's make this happen". That's new, powerful and very cool.

Peerfunding (or crowdfunding, if we must) is the facilitation of numerous small contributions to fund specific, time-limited, projects. Crowdfunding is an offshoot of crowdsourcing, the buzz term from a couple of years ago that gave us talent-mobilizing sites such as GeniusRocket for creative and InnoCentive for scientific problem-solving, outsourcing these functions to the crowd. But this new breed of sites are different, and not just because they are asking for money instead of logo designs or film concepts. Crowdsourcing is focused on producing a unique high-quality contribution (be it logo or film or chemical breakthrough), harvested from the crowd, these new funding platforms work cumulatively. Just as Barack Obama proved the power of small dollar fundraising in the political world we are now seeing the power of small dollar philanthropy in new sectors, especially the arts.

This model first caught my attention in the lead-up to this year's Burning Man, as numerous arts collective raised funds for their projects on Kickstarter. It was really exciting to see some of the amazing things in development and to be able to support in my own modest way a couple of projects I thought were most exciting. And I'll admit it, I did it for the perks too, including the promise of a ride on a very cool artcar (which I never took them up on sadly).

The focus on perks is another unique feature of this model of these new platforms. Across all the leading sites it is required that projects articulate "perks" for their funders. And I don't mean the usual "feel good about yourself" perks, I mean "give me something cool" perks. This works perfectly for many creative projects that are object-oriented - if it's a zine or book you can receive it (signed!), if a film you get a dvd or a credit, if an exhibition or catelogue a print. Digital projects tend towards the thank-you pages and downloads of code (woot). At the higher amounts everyone has to get more creative: dinner with the artist; consulting; an event at your house; an award in your honour.

It's all fun stuff, and it beautifully fuses the line between philanthropy and straight-up shopping. I have always enjoyed purchasing hand-made zines, now I simply pre-buy them and in so doing give the creator the confidence and funds to make it. I enjoy film, and spend money on a Netflix subscription, so why not actually chip in to see documentaries on issues I think are interesting or important made? Some of the projects on Kickstarter in particular have blown out their fundraising targets by seemingly-absurd amounts, raising 1000%+ of their goal, but this is usually really just an unexpected run on a groovy new product. Being quasi-philanthropy and quasi-shopping simultaneously attracts more supporters than either approach alone would engender.

Over the past few months I have supported the publication of zines both micro-micro and merely niche via Kickstarter, production of a documentary on avant-guarde culture in Jerusalem via IndieGoGo, a series of social change posters via LoudSauce and the relaunch of a much-loved independent media website via the Australian FundBreak. There is also Spot.us, which supporters journalistic projects.

These sites are not all the same. Kickstarter and Fundbreak are exclusive to creative projects while IndieGoGo is broader and LoudSauce and Spot.us even narrower, specifically funding public interest advertising campaigns and journalism respectively. All of these sites except for IndieGoGo operate on an "all-or-nothing" model whereby if the project doesn't raise its target by the deadline they receive none of it, with all contributions returned. This is a perfect fit for creative projects (and advertising campaigns) that have very specific amounts required to produce the project (whether it's printing costs or tv time) or else it can't happen at all. There's a necessary tipping point. If it project doesn't raise the necessary funds then the commitments are returned and its no-hard-feelings. It gives a security to contributors that the project will really happen or their money back and for creatives it reassures them that if necessary funds aren't raised they're not on the hook to those who have contributed thus far.

Not all types of projects have this tipping point and currently only IndieGoGo caters to them with a keep-what-you-raise system. This can create another, also important, sort of confidence, that those supporters people have been able to mobilize will see their support realized and delivered.

The biggest gap I see in the peerfunding space currently, in addition to having several valuable niches currently unserved, is that they are all based around one-off projects. There's nowhere where you can create a stable profile for an organization or enterprise and then fundraise for specific projects over time - building a community across these projects and deepening your engagement with these supporters. I'll have more to say about this soon.

Have you contributed to any projects on a peerfunding platform? What do you think is working and how could it be better?

Help open a window on the world

Both Thanksgiving and Christmas are good times for taking stock and thinking about the things we have to be grateful for. For me this means thinking about my global tribe and how lucky I am to have you all in my life. Thinking about this made me realize, once more, how important travel has always been for me, for the relationships I've gained and the experience of other cultures and the global perspective that grows from this. I sincerely wish everyone could have the opportunity to travel and, in the absence of that, I support anything that opens up a window on the world and gets people thinking more globally.

At this time of year I know everyone gets hit with endless requests for support and, yes, I'm putting one out also. I wrote previously about my involvement with Razoo.com's zooGooder council and how impressed I've been with Global Lives Project since coming across them after moving to San Francisco. Over the coming week the members of the zooGooder council are having a friendly competition to see who can raise the most funds and attract the most donors for their favourite nonprofit. Naturally I've chosen Global Lives Project.

Here's my video explaining why:

[youtube=http://www.youtube.com/watch?v=xSuwtypec_o]

(Aside: My first video blog! Kinda scary! What do you think?)

Razoo have generously made available a $2000 prize pool for the person who brings in the most donors and with your help I'd love to be competitive in win! this category. Every donation, however modest, counts as a point towards this prize. In addition I’m also a fundraiser for Global Lives Project’s own group fundraising challenge this month. As part of the launch of this new service Razoo will match the first $200 I raise. What’s more Global Lives Project has a matching grant of up to $30,000 if raised before the end of the year.

Follow all of that? This means any money you donate could be matched up to THREE TIMES! That’s a pretty good return on your investment.

More to the point, whatever money we raise will support Global Lives Project to expand their activities next year - holding new exhibitions and developing educational materials for use by school groups. These videos undoubtedly have artistic merit but it's this educational element I'm most excited about as I think facilitated contact with this content could really get people thinking in new ways, more globally and empathically. In other words, sharing with those who might not have the chance to travel some of the most important benefits we get from the travel experience.

As little as $10 counts towards the most donors challenge and would mean so much to both Global Lives Project and me. If I can raise $1,000 this week I will be stoked, and we will know we've made a real difference to this small but important organization.

But I know not everyone has even $10 to spare so there are other ways you can help as well:

•    Tell your friends! Use the share buttons at the bottom of this post to share the link on Twitter, Facebook ,etc. •    Share your story! All this week I’ll be sharing things travel has given me using the hashtag #travelteaches. Join in! Share your own #travelteaches insight on Twitter and, space permitting, link to http://bit.ly/trvlteach where I’ll be collecting the responses.

Of course, please donate if you can:

I can't wait to hear your stories! Thank you for your support.

More on Global Lives Project:

[youtube=http://www.youtube.com/watch?v=3uFdO8k6IHA&feature=player_embedded]

Artist's statement from GLP's Yerba Buena Center for the Arts Exhibit:

Framed by the arc of the day and conveyed through the intimacy of video, we have slowly and faithfully captured 24 continuous hours in the lives of 10 people from around the world. They are screened here in their own right, but also in relation to one another.

There is no narrative other than that which is found in the composition of everyday life, no overt interpretations other than that which you may bring to it.

Why I'm supporting the Global Lives Project

San Francisco is a place full of energy, overrun by people with big dreams working hard to make amazing things happen. One person who fits this description that I was lucky enough to meet upon moving to San Francisco is David Harris, the founder and Executive Director of the Global Lives Project. He has spent the past five years driving this art/social change/education hybrid project, coordinating 500 volunteers who together have completed shoots in ten countries and staged numerous exhibitions. As he explained the project to me I was inspired by its vision, intrigued by its potential scope and very impressed by the way it had been executed. I knew I wanted to help. [youtube=http://www.youtube.com/watch?v=3uFdO8k6IHA&feature=player_profilepage]

Global Lives Project aims to "collaboratively build a video library of human life experience that reshapes how we as both producers and viewers conceive of cultures, nations and people outside of our own communities."

Global Lives is a series of 10 (so far) 24-hour continuous shoots of the lives of ten diverse people from ten countries around the world. The content is moving in its simple humanity, showing how despite our geographic and cultural differences we have so much more in common, we are one people.

Global Lives Project has mounted exhibitions at the Yerba Buena Center for the Arts in San Francisco and elsewhere, allowing people to wander from room-to-room catching glimpses of these diverse lives. Sometimes they all begin together, at the same time in each day. Sometimes they are played according to their time zones, so 5pm in San Francisco is 8am in China and so on.

Here's David's Artist Statement from their Yerba Buena Center for the Arts Exhibit:

Framed by the arc of the day and conveyed through the intimacy of video, we have slowly and faithfully captured 24 continuous hours in the lives of 10 people from around the world. They are screened here in their own right, but also in relation to one another.

There is no narrative other than that which is found in the composition of everyday life, no overt interpretations other than that which you may bring to it.

I've seen longer reels of film than that featured in the video above but I can fully appreciate how much more impactful this footage can be when situated alongside each other, when people can wander in and out, getting a window into another person's world. Their opening night event and exhibition at Yerba Buena got rave reviews:

[youtube=http://www.youtube.com/watch?v=GHbDGMzdl0g]

It's the immediacy of this live viewing, the context of the ten films played alongside each other, that I believe would give the most powerful sense of looking through a window into the world of another. I would love to experience this, would love to see Global Lives Project being able to mount more events and exhibitions and organize new shoots to continue to build their library of human experiences. When I needed to choose a nonprofit to fundraise on behalf of as part of Razoo's 'zooGooders Council, I immediately thought of Global Lives Project.

Between now and the end of the year I'd love to be able to make a contribution to the expansion of GLP's activities next year, supporting them to hold new exhibitions, develop educations programs around their content and grow the library itself. My main motivation in supporting GLP is to help get this great content before more people.

Please consider supporting my fundraiser. My fundraising widget is here. Every bit makes a difference. Anything that gives people a window into the lives of another, that increases our understanding and empathy of other lives, helps create a more peaceful, more just world.

I'm a zooGooder!

A couple of weeks ago my friend Geoff Livingston called me up and asked me how I'd like to be part of a new group advising Razoo, the excellent nonprofit fundraising platform, on the development of a new personal fundraising tool. The group would involve fundraising, community-building and social media experts who would engage in a series of exercises followed by conference calls and Twitter chats to share what we're learning. In other words, a chance to connect with smart people and learn from their collective wisdom while supporting an organization or my choice to raise funds and expand their community? Hell yeah I'd like to be involved.

The group is know as the zooGooder Council and is every bit the great collection of advocates and nonprofiteers I imagined. In addition to myself it includes:

• Andre Blackman of Pulse and Signal. • Nicole D’Alonzo of Niki’s Notes • Abby Flottemesch of Atlas Corps • John Haydon of his eponymous blog, http://www.johnhaydon.com • Rachel Matthews of A Southern Fairy Tale • William Neuheisel of DC Central Kitchen • Armando Rayo of El Mundo de Mando • Jennifer Roccanti of Miriam’s Kitchen • Amber Rodriguez of Noah’s Kitchen • Jenna Sauber at Lagniappe • Andy Sternberg of his eponymous blog, http://andysternberg.com/ • Andrea Weckerle of CiviliNation • Jennifer Windrum of WTF Lung Cancer

This is a fantastic group of experienced do gooders and I'm excited to have the opportunity to learn from them and share my own experiences along the way. We'll be testing the new DonateAnywhere widget that Razoo have launched, which allows a blogger or organization to fundraise without sending their visitors to another site.

Unfortunately I cannot fully test out this functionality, which is a genuine step forward, as it requires that the host accept external javascript (that's what allows the widget to process financial payment securely). Wordpress.com does not. Another reason for me to update to a wordpress.org install soon I guess.

Regardless I'm excited to play with Razoo's tools and help an organization I admire: The Global Lives Project. I'll be blogging about why I chose this organization tomorrow but if you'd like to check out the DonateAnywhere widget in action and, even better, donate to this cause check out my donation page.

You can participate in the learning and conversation around the zooGooder program by joining the weekly #zooGood twitter chat, 6-6.30pm Pacific each Tuesday.