You’ve probably heard of Kickstarter and Patreon. Add to that a vibrant community, gamification and crypto, and you have Polinate: a next-gen crowdfunding platform that wants to enable creatives and artists to make their dreams come true, yet does things completely differently from its conventional counterparts. At least that’s what they think…
Crowdfunding has become a popular source of funding for new ventures and startups in recent years. Not surprising, because many entrepreneurs have difficulty raising sufficient capital from conventional financial providers such as banks. Moveco.io cryptocurrency has enough information. In addition, the lack of valuable assets to serve as collateral is one of the biggest challenges investors face with traditional financial providers. In other words; many startups and creative entrepreneurs get no answer.
Creators behind Polinate
The creators behind Polinate do things very differently. Using blockchain technology, the aim is to design an ecosystem for creative makers, investors, sponsors and fans to communicate on a fair and permission-free infrastructure and together reap the benefits of each other’s dedication.
Because imagine if you, as a creator and creative person, have access to financing, even without a bank account? That fans can support creators and the causes they believe in? That you can capitalize on your social relationships to act as a patron for an exciting project? And that investors can earn money on creative projects before they are launched? It almost sounds too good to be true and yet that is exactly what Polinate wants to do.
Challenges and disadvantages of conventional crowdfunding platforms
If we look at the current climate, there are various crowdfunding platforms that have made a name for themselves in recent years. However, they are not the ultimate solution and, according to Polinate, there are quite a few challenges and problems with the existing platforms.
Crowdfunding platforms have a so-called gatekeeper function. In practice, this means that some projects are shown and others are not. The idea behind this is to create a good reputation for the crowdfunding platform as a reliable investment tool. At the same time, in practice this means incorporating some companies and disqualifying others. As a result, the goal of providing an inclusive system is not achieved.
Crowdfunding platforms have quite high commission costs. For example, they charge a fee on the total investments that have been made. Kickstarter, for example, charges a 5 percent commission for a creator’s capital raised. In addition, there will be an additional credit card processing fee of 3 percent plus $0.20 for each commitment.
Indiegogo is another crowdfunding platform that offers flexible and fixed campaigns. Flexible crowdfunding allows the person in charge of the crowdfunding campaign to keep the capital raised regardless of whether the original goal has been achieved or not. With fixed crowdfunding, the capital can be transferred if the original funding goal has been reached. For example, Indiegogo charges a 9percent fee for fixed crowdfunding or 4 percent if the initial goal is not reached because the capital is returned. In addition, credit card processing fees of between 3-5 percent are also charged for both fixed and flexible crowdfunding.
Finally, saturated marketplaces give little exposure to projects. In many cases, a competitive market is basically seen as a good thing because it shows high demand. Renovato.io has enough information. A project must be original and have unique features to remain competitive and attract many customers. For many creatives this is quite difficult.
Polinate wants to completely shake up crowdfunding conventions
By using blockchain technology and smart contracts, Polinate aims to provide fair financing options to a variety of creators. In their own words, for example, the conventional crowdfunding model is disrupted by three distinguishing features:
Permissionless – unlike traditional crowdfunding platforms, Polinate proposes to provide an infrastructure without permission for creators to display their ‘art’ and build an audience.