{"id":152994,"date":"2025-03-24T04:39:19","date_gmt":"2025-03-24T04:39:19","guid":{"rendered":"https:\/\/peraltafinancing.com\/agriculture\/crowdfunding-an-exciting-new-way-to-fund-a-project\/"},"modified":"2025-03-24T04:39:19","modified_gmt":"2025-03-24T04:39:19","slug":"crowdfunding-an-exciting-new-way-to-fund-a-project","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=152994","title":{"rendered":"Crowdfunding: An Exciting New Way to Fund a Project"},"content":{"rendered":"\n<div class=\"MsoNormal\" style=\"margin: 0in 0in 10pt\">\n<b><span style=\"font-family: Calibri\">By <a href=\"http:\/\/extension.psu.edu\/directory\/jse15\">Juliette Enfield<\/a>,<br \/>\nPenn State Extension Educator, <a href=\"http:\/\/extension.psu.edu\/warren\">Warren Co.<\/a><\/span><\/b><\/div>\n<p><\/p>\n<table align=\"center\" cellpadding=\"0\" cellspacing=\"0\" class=\"tr-caption-container\" style=\"margin-left: auto;margin-right: auto;text-align: center\">\n<tbody>\n<tr>\n<td style=\"text-align: center\"><a href=\"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEh7aJWT9QoVUF5wS2S7ob6vXc9NZTMdSCq_dighfqrHzJRQlYNLucqPHkNYHdT2jMLPIVhuGBhQybfays2HaR2_9PtWbu_zBsQbwCxyHUUUCv06c1Y_9CxJZBiyzvyPdEYeHbdXrlJYL6o\/s1600\/231.JPG\" style=\"margin-left: auto;margin-right: auto\"><img loading=\"lazy\" decoding=\"async\" border=\"0\" height=\"240\" src=\"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEh7aJWT9QoVUF5wS2S7ob6vXc9NZTMdSCq_dighfqrHzJRQlYNLucqPHkNYHdT2jMLPIVhuGBhQybfays2HaR2_9PtWbu_zBsQbwCxyHUUUCv06c1Y_9CxJZBiyzvyPdEYeHbdXrlJYL6o\/s320\/231.JPG\" width=\"320\" \/><\/a><\/td>\n<\/tr>\n<tr>\n<td class=\"tr-caption\" style=\"text-align: center\">The success of any business depends on the crowd that supports it.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div class=\"MsoNormal\" style=\"margin: 0in 0in 10pt\">\n<span style=\"font-family: Calibri\">Crowdfunding captures the essence of the entrepreneurial<br \/>\nspirit-that anything is possible. The size and scope of the projects on<br \/>\ncrowdfunding sites are awe inspiring. In 2012, the JOBS \u2013Jumpstart Our Business<br \/>\nStartups Act was passed by Congress and signed into law by the Obama<br \/>\nAdministration.<span>&nbsp; <\/span>This Act eliminated<br \/>\ncertain restrictions on how new startup businesses could be funded. Since 2012,<br \/>\ncrowdfunding has become a term that many people are familiar with, but may not<br \/>\nhave direct experience with. Have you ever considered crowdfunding for your<br \/>\nbusiness? Perhaps you are uncomfortable with the high interest rates that may<br \/>\nbe incurred with a loan, or maybe your credit isn\u2019t the best and you are unable<br \/>\nto access a loan in the first place. Crowdfunding can work in a few different<br \/>\nways. Investors can support a new business by buying a share in the business<br \/>\n(equity crowdfunding), making donations (donation crowdfunding), or lending<br \/>\nmoney (debt crowdfunding). According to <\/span><a href=\"http:\/\/www.forbes.com\/sites\/ryancaldbeck\/2013\/06\/23\/crowdfunding-trends-which-crowdfunding-sites-will-survive\/\"><span style=\"color: blue;font-family: Calibri\">Forbes.com<\/span><\/a><span style=\"font-family: Calibri\">,<br \/>\nthere are over 500 crowdfunding platforms online, so even if you understand the<br \/>\nbasic fundamentals of how crowdfunding works, you will need to do some research<br \/>\nto find a site that will work well for you. Some sites have stronger<br \/>\nreputations than others, and some have easier access to customer service. Also,<br \/>\nmany crowdfunding sites specialize in a certain type of project or industry.<br \/>\nFor example, <\/span><a href=\"http:\/\/www.quirky.com\/\"><span style=\"color: blue;font-family: Calibri\">Quirky<\/span><\/a><span style=\"font-family: Calibri\"> specializes in funding inventions<br \/>\nof new everyday tools, <\/span><a href=\"http:\/\/www.crowdrise.com\/\"><span style=\"color: blue;font-family: Calibri\">Crowdrise<\/span><\/a><span style=\"font-family: Calibri\"> specializes<br \/>\nin charitable projects, and <\/span><a href=\"http:\/\/www.giveforward.com\/\"><span style=\"color: blue;font-family: Calibri\">GiveForward<\/span><\/a><span style=\"font-family: Calibri\"><br \/>\nspecializes in funding medical expenses for people will illness. Another<br \/>\ndifference among crowdfunding sites is how and when payments are received for a<br \/>\nproject. For example, <\/span><a href=\"http:\/\/www.kickstarter.com\/\"><span style=\"color: blue;font-family: Calibri\">Kickstarter<\/span><\/a><span style=\"font-family: Calibri\"> only<br \/>\naccepts payments from investors if the project has been funded, and <\/span><a href=\"http:\/\/www.indiegogo.com\/\"><span style=\"color: blue;font-family: Calibri\">Indiegogo<\/span><\/a><span style=\"font-family: Calibri\"> accepts payments from investors<br \/>\nregardless of whether or not a certain goal has been reached. Crowdfunding<br \/>\nsites charge a fee ranging from 7-12% of the total project cost, so this may<br \/>\nalso influence your decision of which platform to use.<\/span><\/div>\n<p>\n\ufeff\ufeff\ufeff\ufeff\ufeff\ufeff\ufeff\ufeff<\/p>\n<div class=\"MsoNormal\" style=\"margin: 0in 0in 10pt\">\n<b><span style=\"font-family: Calibri\">Crowdfunding for Farm<br \/>\nand Food Businesses<\/span><\/b><\/div>\n<p><\/p>\n<div class=\"MsoNormal\" style=\"margin: 0in 0in 10pt\">\n<a href=\"http:\/\/birchrunhillsfarm.com\/\"><span style=\"color: blue;font-family: Calibri\">Birchrun Hills Farm<\/span><\/a><span style=\"font-family: Calibri\">,<br \/>\na dairy farm and cheese business in Chester County, PA successfully funded a<br \/>\nproject to build a new cheese cave on <\/span><a href=\"http:\/\/www.kickstarter.com\/\"><span style=\"color: blue;font-family: Calibri\">Kickstarter<\/span><\/a><span style=\"font-family: Calibri\">.<br \/>\nKickstarter is a popular donation based crowdfunding website. Kickstarter projects<br \/>\ninclude film, music, art, design, technology, and food. I spoke with Sue<br \/>\nMiller, Birchrun Hills Farm business owner, about her experience with<br \/>\nKickstarter. She chose Kickstarter because of the recognition of the site, she<br \/>\nliked the all or nothing philosophy of the site, and the fees were reasonable.<br \/>\nShe also knew of other farm businesses that had success with the site,<br \/>\nincluding <\/span><a href=\"http:\/\/www.northmountainpastures.com\/\"><span style=\"color: blue;font-family: Calibri\">North Mountain<br \/>\nPastures<\/span><\/a><span style=\"font-family: Calibri\"> in Newport, PA, a meat CSA farm with a charcuterie business. Sue<br \/>\nran a 30 day campaign in December 2014. For different donation levels, Sue<br \/>\noffered a variety of different prizes ranging from a hat with the farm logo on<br \/>\nit to private cheese and beverage pairing parties. She said the most popular<br \/>\nprize she offered was the chance to name a newborn calf on the farm. Sue<br \/>\nestimated that less than 5% of the people that were reached about the campaign<br \/>\nactually donated. Therefore, the campaign period is an intense marketing time,<br \/>\nand having a marketing strategy and a budget in place is essential. Sue said she<br \/>\nwas delighted to see how the community supported her project, and now that the<br \/>\ncampaign is over and she is building her new cheese cave, crowdfunding has helped<br \/>\nher expand her business network in the region and across the nation. For those<br \/>\nthinking about embarking on a crowdfunding endeavor, <span>&nbsp;<\/span>Sue recommend that they work for a year or so<br \/>\nprior to the campaign period to expand their social media network, since this<br \/>\nis the primary way crowdfunding campaigns are advertised. She also said that<br \/>\nnext time she might consider hiring someone to run the campaign for her, so<br \/>\nthat she would not have to run the farm and the campaign at the same time. You<br \/>\ncan still view <\/span><a href=\"https:\/\/www.kickstarter.com\/projects\/993112740\/birchrun-hills-farm-raise-a-cheese-cave\/description\"><span style=\"color: blue;font-family: Calibri\">Sue\u2019s<br \/>\ncampaign<\/span><\/a><span style=\"font-family: Calibri\"> on Kickstarter. <\/span><\/div>\n<p><\/p>\n<table align=\"center\" cellpadding=\"0\" cellspacing=\"0\" class=\"tr-caption-container\" style=\"margin-left: auto;margin-right: auto;text-align: center\">\n<tbody>\n<tr>\n<td style=\"text-align: center\"><a href=\"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEi7tOEkko0c83EnvoMha2xdzAZbSSuezhwzCdTQD6X7NojmU63we6-e_jWA_edYZgywRN2ZanjNkOGLLrDJVzQ1HeuVv-RNBw2wiXrlDeQe43L3P2_5Z5ylu_GdHKATCRpHgGwKI6cqzpw\/s1600\/046.JPG\" style=\"margin-left: auto;margin-right: auto\"><img loading=\"lazy\" decoding=\"async\" border=\"0\" height=\"240\" src=\"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEi7tOEkko0c83EnvoMha2xdzAZbSSuezhwzCdTQD6X7NojmU63we6-e_jWA_edYZgywRN2ZanjNkOGLLrDJVzQ1HeuVv-RNBw2wiXrlDeQe43L3P2_5Z5ylu_GdHKATCRpHgGwKI6cqzpw\/s320\/046.JPG\" width=\"320\" \/><\/a><\/td>\n<\/tr>\n<tr>\n<td class=\"tr-caption\" style=\"text-align: center\">What&nbsp;would you like to do next&nbsp;with your business? <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/p>\n<div class=\"MsoNormal\" style=\"margin: 0in 0in 10pt\">\n<span style=\"font-family: Calibri\">Another crowdfunding site that agricultural businesses<br \/>\nshould know about is <\/span><a href=\"https:\/\/zip.kiva.org\/\"><span style=\"color: blue;font-family: Calibri\">Kiva Zip<\/span><\/a><span style=\"font-family: Calibri\">. Kiva Zip is a<br \/>\ndebt based crowdfunding site that offers 0% interest loans to funded projects. Kiva<br \/>\nwas first created to help finance microloans to farmers and small businesses in<br \/>\ndeveloping countries, but it has recently grown in popularity in the US with<br \/>\nsmall and beginning farmers. Kiva loans are especially well adapted to new farm<br \/>\nand food businesses because the loans are small, from $5,000 to $10,000, and<br \/>\nare therefore less risky. Once the money is lent, the business has 3 years to<br \/>\nrepay the loan. The Kiva fundraising process has three tiers. First, the agricultural<br \/>\nbusinesses must be endorsed by a Trustee, a business or an individual<br \/>\n(non-family member) that will vouch for the character of a borrower. Then, once<br \/>\nthe Trustee is in place, a network of friends and family (ranging from 10-30<br \/>\ncontacts) must be the primary lenders to the project. This occurs during the<br \/>\nfirst 15 days that the campaign is launched. And finally, after this primary<br \/>\nnetwork has lent to the project, the project is opened for anyone to lend. Kiva<br \/>\nprojects are live for 45 days. Emily Keebler, Kiva City Pittsburgh Lead, says<br \/>\nthat the first 15 days of fundraising is the most intense fundraising period. Emily<br \/>\nsays that many businesses that have a successful lending experience with Kiva Zip<br \/>\nthen become Trustees themselves for another business, and these small amounts<br \/>\nof money continue to support small businesses over and over again. <\/span><a href=\"https:\/\/zip.kiva.org\/loans\/2950\"><span style=\"color: blue;font-family: Calibri\">Healcrest Urban Farms<\/span><\/a><span style=\"font-family: Calibri\">, a farm that<br \/>\ngrows herbs and small fruits in Pittsburgh, PA successfully received a loan on<br \/>\nKiva Zip to pay for the use of a shared kitchen and purchase of an ice cream<br \/>\ncart to start their popsicle business, TeaPops. <\/span><a href=\"https:\/\/zip.kiva.org\/loans\/1216\"><span style=\"color: blue;font-family: Calibri\">Good Work Farms, LLC<\/span><\/a><span style=\"font-family: Calibri\">, a vegetable<br \/>\nfarm in Emmaus, PA received a loan on Kiva Zip to purchase draft horses for<br \/>\nplowing and lowering energy costs on their farm. <\/span><a href=\"https:\/\/zip.kiva.org\/loans\/12552\"><span style=\"color: blue;font-family: Calibri\">BEEBOY Honey<\/span><\/a><span style=\"font-family: Calibri\">, a beekeeper in Pittsburgh<br \/>\nreceived a loan to purchase more hives and a truck for honey deliveries. Kiva Zip<br \/>\nmay be an option for your food business if you decide that offering rewards for<br \/>\ndonations may be too much of a challenge and you would rather spend your time and<br \/>\nenergy repaying a small loan. <\/span><\/div>\n<p><\/p>\n<div class=\"MsoNormal\" style=\"margin: 0in 0in 10pt\">\n<span style=\"font-family: Calibri\">Be sure to do your research before choosing your<br \/>\ncrowdfunding platform. Spend time looking at the projects that are out there. Create<br \/>\na budget, marketing plan, and a clear, concise message about what you are<br \/>\ntrying to accomplish. Have you had any experience with crowdfunding? Share your<br \/>\ncomments and suggestions with us!<\/span><\/div>\n<p><\/p>\n<div class=\"MsoNormal\" style=\"margin: 0in 0in 10pt\">\n<b><span style=\"font-family: Calibri\">Sources for this<br \/>\nblog:<\/span><\/b><\/div>\n<p><\/p>\n<div class=\"MsoNormal\" style=\"margin: 0in 0in 10pt\">\n<span style=\"font-family: Calibri\">Caldbeck, Ryan. Crowdfunding Trends: Which Crowdfunding<br \/>\nSites Will Survive. Forbes.com. June 23, 2013. &lt;<\/span><a href=\"http:\/\/www.forbes.com\/sites\/ryancaldbeck\/2013\/06\/23\/crowdfunding-trends-which-crowdfunding-sites-will-survive\"><span style=\"color: blue;font-family: Calibri\">http:\/\/www.forbes.com\/sites\/ryancaldbeck\/2013\/06\/23\/crowdfunding-trends-which-crowdfunding-sites-will-survive<\/span><\/a><span style=\"font-family: Calibri\">&gt;<br \/>\nAccessed July 8, 2015.<\/span><\/div>\n<p><\/p>\n<div class=\"MsoNormal\" style=\"margin: 0in 0in 10pt\">\n<span style=\"font-family: Calibri\">North Carolina State University Cooperative Extension.<br \/>\nFunding Opportunities. June 2014. &lt;<\/span><a href=\"http:\/\/communitydevelopment.ces.ncsu.edu\/funding-opportunities\"><span style=\"color: blue;font-family: Calibri\">http:\/\/communitydevelopment.ces.ncsu.edu\/funding-opportunities<\/span><\/a><span style=\"font-family: Calibri\">&gt;<span>&nbsp; <\/span>Accessed July 8, 2015. <u><span style=\"color: blue\"><\/span><\/u><\/span><\/div>\n<p><\/p>\n<div class=\"MsoNormal\" style=\"margin: 0in 0in 10pt\">\n<span style=\"font-family: Calibri\">Pollack, Bridget. The Ins and Outs of Alternative Financing.<br \/>\nU.S. Small Business Administration Blog. June 4, 2015. &lt;<\/span><a href=\"https:\/\/www.sba.gov\/blogs\/ins-and-outs-alternative-financing\"><span style=\"color: blue;font-family: Calibri\">https:\/\/www.sba.gov\/blogs\/ins-and-outs-alternative-financing<\/span><\/a><span style=\"font-family: Calibri\">&gt;Accessed<br \/>\nJuly 8, 2015.<b><\/b><\/span><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>By Juliette Enfield, Penn State Extension Educator, Warren Co. The success of any business depends on the crowd that supports it. Crowdfunding captures the essence of the entrepreneurial spirit-that anything is possible. The size and scope of the projects on crowdfunding sites are awe inspiring. In 2012, the JOBS \u2013Jumpstart Our Business Startups Act was [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":152995,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12026],"tags":[15280,4013,11460,5401],"dealstore":[],"offerexpiration":[],"class_list":["post-152994","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agriculture","tag-crowdfunding","tag-exciting","tag-fund","tag-project"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Crowdfunding: An Exciting New Way to Fund a Project - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=152994\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Crowdfunding: An Exciting New Way to Fund a Project - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"By Juliette Enfield, Penn State Extension Educator, Warren Co. The success of any business depends on the crowd that supports it. Crowdfunding captures the essence of the entrepreneurial spirit-that anything is possible. The size and scope of the projects on crowdfunding sites are awe inspiring. 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Som2ny Network","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/fivemor.com\/?p=152994","og_locale":"en_US","og_type":"article","og_title":"Crowdfunding: An Exciting New Way to Fund a Project - Som2ny Network","og_description":"By Juliette Enfield, Penn State Extension Educator, Warren Co. The success of any business depends on the crowd that supports it. Crowdfunding captures the essence of the entrepreneurial spirit-that anything is possible. The size and scope of the projects on crowdfunding sites are awe inspiring. In 2012, the JOBS \u2013Jumpstart Our Business Startups Act was [&hellip;]","og_url":"https:\/\/fivemor.com\/?p=152994","og_site_name":"Som2ny Network","article_published_time":"2025-03-24T04:39:19+00:00","og_image":[{"width":1200,"height":630,"url":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/03\/231.JPG","type":"image\/jpeg"}],"author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/fivemor.com\/?p=152994#article","isPartOf":{"@id":"https:\/\/fivemor.com\/?p=152994"},"author":{"name":"admin","@id":"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371"},"headline":"Crowdfunding: An Exciting New Way to Fund a Project","datePublished":"2025-03-24T04:39:19+00:00","mainEntityOfPage":{"@id":"https:\/\/fivemor.com\/?p=152994"},"wordCount":1195,"commentCount":0,"publisher":{"@id":"https:\/\/fivemor.com\/#organization"},"image":{"@id":"https:\/\/fivemor.com\/?p=152994#primaryimage"},"thumbnailUrl":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/03\/231.JPG","keywords":["Crowdfunding","Exciting","Fund","Project"],"articleSection":["Agriculture"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/fivemor.com\/?p=152994#respond"]}]},{"@type":"WebPage","@id":"https:\/\/fivemor.com\/?p=152994","url":"https:\/\/fivemor.com\/?p=152994","name":"Crowdfunding: An Exciting New Way to Fund a Project - 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