Germany is gradually returning to normal, but this can hardly compensate for the economic damage in many places. This means that municipal crowdfunding platforms are in greater demand than ever before.
It was only a few days after the corona lockdown that municipal utilities and municipal suppliers realized the potential their crowdfunding platforms offer for restaurateurs, retailers and clubs to cushion the financial crisis caused by the pandemic.
Without further ado, numerous crowdfunding platforms relaxed their access requirements so that those affected can be helped quickly and without the administrative burden associated with local government funds. As the Leipzig Group emphasisez: “The current situation presents us all with major challenges – including associations and initiatives. Solidarity and support is needed more than ever. And since we as the Leipzig Group understand services of general interest to mean much more than just the supply of energy, mobility and water, it is a matter close to our hearts to prove once again that we are there for Leipzig.”
The people of Leipzig have put in a strong showing. $56.000 (€50,000) was raised for the sports club SC DHfK Leipzig alone to cover the running costs and to maintain the offer for post-corona times.
Boards have special needs
Potsdam, Jena, Oberhausen and also the people in the Wemag network area showed similar solidarity. The willingness to support the boards in the region stood out in particular. There were several project inquiries on this topic, one of which made it onto the platform of the Schwerin-based company. Instead of the planned $565 (€500), $5,436 (€4,815) was collected. The entire WEMAG promotion pot flowed into this project in April. “It is a great example of how several small amounts can make a big difference and how well the platform works to find many supporters quickly and easily,” said Wemag.
One of the decisive factors for the success of the municipal crowdfunding projects as a Corona emergency aid measure was the rapid, technical adaptation of the platforms. It did not even take 24 hours until the Wemag crowdfunding platform was open to all those affected. However, it was not only the “old hands” of the municipal crowd funding that showed solidarity; VKU members without their own crowd also supported crisis-stricken restaurateurs, retailers and clubs. This was made possible through the national crowdfunding platform of VKU Verlag (https://www.kommunales-crowdfunding.de/).
65 projects and $135,500 (€120,000) in funding
Under the motto “Crowd against Corona”, not only all projects of the 20 existing crowdfunding platforms are advertised on the national platform, but also municipal utilities and suppliers without their own crowd funding platform can use the offer of VKU Verlag. Project starters can apply directly to the national platform, and once the project goes online, it is played out via a widget on the respective homepage of the municipal company. To increase the chances of successful financing, the projects are assigned to the respective crowd newcomers by postcode.
In the meantime, according to Torsten Lührs, managing director of fairplaid, more than 30 partners have accepted the free offer of help and helped to develop it further in order to help as many associations and institutions in the regions as possible. They are using promotion pots and promotion forms at a value of over $135,500 (€120,000). “Together with our team, we are now working on these projects on a daily basis in order to prepare them in the best possible way and make them successful.
Test Crowdfunding as a sponsoring tool free of charge
This has already worked for Stadtwerke Troisdorf, which has already successfully supported two projects. While the tennis club “TCT Haus Rott” has collected almost $2,200 (€2,000) for a hygiene tower, the city’s women’s center can now build up hygiene protection walls with over $565 (€500). “Through crowdfunding, maximum coverage is achieved and attention is drawn to the population. An association or a company alone would not be able to achieve this on its own,” said the Troisdorf resident.
In addition, the success proves how well the system is received by the people on site. The VKU Verlag has opened its national platform for the time being until the end of July. The Troisdorf-based company wants to use this time to test crowdfunding as a new sponsoring approach, as this is the only way to find out the advantages and disadvantages of the previous model.
First project in the pipeline
Stadtwerke Speyer also uses the offer of VKU Verlag and plans to publish a project on its homepage soon: “With crowdfunding, Stadtwerke Speyer is breaking new ground. What particularly impressed us about crowdfunding is that we are not the sole donor, but are supporting a project sponsor who wants to convince people of his project. Projects that involve several people are usually associated with strong emotional ties, creativity and innovation. Qualities that also go well with Stadtwerke Speyer.”
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in ZfK, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Taur, a high-tech electric scooter that was funded via Kickstarter
Taur, a new electric scooter that was funded through a crowdfunding campaign on Kickstarter can now be purchased for $1.106...
V recovery versus K recovery: what is it going to be?
The markets continue to trace out what could prove to be an important top. There are no sell signals yet,...
Gold & Dow Jones’ step sum symmetry
Like the Dow Jones, gold too is range bound between its BEV Zero and BEV -10% lines below. This is...
Alibaba’s fintech branch goes public after receiving the permission
Ant received this Wednesday, October 21st the permission from the China Securities Regulatory Commission. The jump to the stock market...
Roche signs its new diabetes business manager in Spain to Isdin
The company Roche Diabetes Care Spain, part of the Swiss pharmaceutical group, has appointed Josep Maria Vallmajó to hold the...
Africa6 days ago
Why countries in southern Africa could become leaders in the cannabis sector
Business6 days ago
How COVID-19 has changed the VC landscape
Business6 days ago
How to market your business during and after the pandemic
Business6 days ago
Hot junior miner Rockridge Resources goes all-in at the Raney Gold Project