Entrepreneurs Affected by the DANA in Valencia Turn to Crowdfunding

The GoFundMe crowdfunding platform, originally from the United States, is the site where many entrepreneurs affected by the DANA in Valencia are looking for a solution to receive financial aid in order to refloat their small, sunken businesses.

It is a US-based crowdfunding platform for profit that allows people to raise funds for a wide variety of events, from life events such as celebrations or graduations to challenging circumstances such as catastrophes, accidents or medical treatments .

Founded in 2010 by Brad Damphouss and Andrew Ballester, it is estimated that to date more than 25 billion euros have been raised thanks to a global community of 100 million people, according to the platform’s website.

Many Valencian entrepreneurs seem to have found an additional way to finance their small businesses these days. We have already talked on this website about the campaigns launched by companies such as Don Pa Artesans or the restaurant La Mesedora , but there are many more.

In fact, a new window can be found on the platform, under the name ‘Help for Valencia ‘, inviting people to launch fundraising campaigns to financially support entrepreneurs and businesses affected by the sudden floods of October 29th. “Each donation is backed by our guarantee, ensuring that the funds go directly to the beneficiaries affected by this crisis,” they say on the website.

Influencer David Aliagas launched the initiative called Una copa por Valencia, inviting all young people to donate the 10 or 15 euros they spend on a drink at the club to entrepreneurs affected by the DANA. “I propose the challenge of organizing a ‘massive drink’ for Valencia,” the young influencer proposed to join forces in a campaign that, as of November 18, had managed to raise 304,805 euros of the €500,000 set as a goal. In total, more than 20,000 donations were received.

Adopt a business section: entrepreneurs try to raise money to save their businesses

Another section that has been included on the website is ‘Adopt a business’. Here you can find businesses of all kinds, from restaurants to bookstores, fruit shops or clinics, among many others.

There are also entrepreneurs who have seen their expectations exceeded. This is the case of the musical collective Sedajazz , in the small Valencian town of Sedaví. Before the catastrophe, Sedajazz was already operating as a music management company with more than one hundred trained professional musicians. “Unfortunately, our headquarters, where we teach music classes, has suffered the consequences of the terrible DANA,” they say in the presentation of their crowdfunding campaign .

The goal was to raise an initial sum of 20,000 euros to buy musical instruments, sound equipment or computer equipment, among other things. In the end they managed to raise 31,273 euros from 420 donations.

Another business that has managed to exceed the amount sought with the campaign is Veterinaris Massanassa.

The entrepreneurs introduce themselves as Belén and Eli, referring to the clinic not only as their job, but also as “our passion and dream since we were children.” With the water they say they have lost all the machines (ultrasound, x-ray machine, anesthetic machine, electrosurgery, oxygen generators…) “essential to provide a quality service, and we are faced with urgent expenses that neither we nor our families are able to assume.” Of the 30,000 euros initially proposed, the entrepreneurs have already reached 30,340 euros among a total of 748 donations.

It should also be noted that other similar initiatives have been adopted by ‘adopt a business’, such as ‘adopt a school’, a sports centre or a shelter.

What sets GoFundMe apart from other platforms

GoFundMe is one of the most popular and recognized crowdfunding platforms worldwide. It specializes in personal campaigns and charitable causes. In other words, it is aimed at raising funds for medical expenses, natural disasters or social causes, among others.

It uses a flexible funding model so that the funds raised are delivered to the beneficiary, even if the established goal is not reached . The way of funding is through the collection of a commission for each donation made, in addition to a percentage of the total funds raised. They charge a transaction fee of 2.9% and 0.25 cents for each donation.

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(Featured image by Themil via Pixabay)

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First published in Emprendedores. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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