Should You Do Crowdfunding in 2025?

Key Concepts:

• Crowdfunding (Rewards-based, Nonprofit, Real Estate, Debt-based, Subscription-based/Patreon, Equity)
• Idea Stage vs. Action
• Planning & Execution
• Tribe Building & Community
• Validation
• Cutting out the Middleman
• Ethical Obligation

1. Types of Crowdfunding and Project Fit:

• Rewards-based Crowdfunding: Platforms like Kickstarter and Indiegogo. Suited for films, indie projects, publishing (card games, video games), e-commerce innovations (gadgets, gizmos, design products), and music projects. Backers pre-order the product.
• Nonprofit Crowdfunding/Peer-to-Peer Fundraising: Raising money for nonprofit organizations.
• Real Estate Crowdfunding: Funding properties using crowdfunding.
• Debt-based Crowdfunding: Raising money through micro-investors for debt offerings.
• Subscription-based Crowdfunding: (Patreon) Ongoing support through subscriptions.
• Equity Crowdfunding: Platforms like WeFunder, StartEngine, Republic.co. Raising funds for startups in exchange for equity. Investors expect a financial return.
• Key Point: Projects must fit into one of these major categories. Avoid trying to combine multiple types simultaneously (e.g., nonprofit with equity shares and e-commerce). Sequential use of different types is possible (e.g., Kickstarter -> Patreon -> Equity Crowdfunding).

2. Stage of Idea and Willingness to Take Action:

• Crowdfunding is not suitable for vague ideas that are kept secret or for those unwilling to develop them.
• Actionable Steps: Create a pitch deck, develop a prototype, design artwork.
• Key Point: Crowdfunding requires demonstrating progress and inspiring others with a tangible representation of the idea.

3. Planning and Execution:

• Successful campaigns require a plan from point A to point B.
• Key Point: Crowdfunding is not a get-rich-quick scheme. It requires hard work and dedication.
• Backers expect creators to continue taking action after funding, whether it's delivering a product, helping a target demographic, or building a startup.

4. Value of Tribe Building and Community:

• For successful campaigns, funding is not the only important aspect.
• Key Benefits: Building a tribe, media mentions, community feedback, and validation.
• Validation: Crowdfunding helps determine if the project is worth pursuing long-term. It saves time and money by compressing the validation process.

5. Cutting Out the Middleman:

• Crowdfunding cuts out the middleman (e.g., music labels, publishers).
• Drawback: The creator is responsible for marketing and promotion.
• Key Point: Creators must be willing to actively promote their campaign and involve the public's imagination.

6. Ethical Obligation:

• Creators have an ethical obligation to pursue projects that can positively impact others.
• Key Point: Whether or not crowdfunding is used, the creator should commit to taking action and moving the idea forward.

7. Notable Quotes:

• "One of the biggest ways that the crowing industry has been hurt over the years is people who don't understand whether or not they should actually do crowdfunding." - Salvador Brigman
• "Crowdfunding is really great if you are willing to take action on that idea." - Salvador Brigman
• "Every single successful crowing campaign has a plan and is willing to execute on that plan." - Salvador Brigman
• "These are the reasons why crowdfunding would be a good fit for you." - Salvador Brigman
• "...you have an ethical obligation to move this forward." - Salvador Brigman

8. Technical Terms and Concepts:

• Pitch Deck: A presentation used to showcase a business plan to potential investors.
• Prototype: A preliminary model of a product.
• Tribe: A dedicated community of supporters.
• Validation: The process of confirming the viability and desirability of a product or idea.

9. Logical Connections:

• The video starts by addressing the potential bias of the speaker, then moves into the reasons why crowdfunding might not be a good fit for everyone.
• It progresses from the broad categories of crowdfunding to the specific requirements for success, such as taking action, planning, and valuing the community.
• The discussion of cutting out the middleman leads to the importance of self-promotion and marketing.
• The video concludes with a call to action and an emphasis on the ethical obligation to pursue impactful ideas.

10. Synthesis/Conclusion:

The video provides a detailed overview of whether or not crowdfunding is a suitable option in 2025. It emphasizes the importance of fitting into a major crowdfunding category, taking action on an idea, having a solid plan, valuing community building, and being prepared to market the campaign. The speaker underscores that crowdfunding is not a passive endeavor and requires dedication, hard work, and a genuine desire to create a positive impact. Ultimately, the video encourages viewers to assess their readiness and ethical obligation before embarking on a crowdfunding campaign.