A newly-emerged crowdfunding platform is offering the lowest fees in the industry.
The rewards-based, international platform will charge 3% for those projects which raise up to $100,000, and just 1% for any which raise in excess of $100,000. In a seldom-seen twist, the platform will not work on an all-or-nothing basis – allowing entrepreneurs to retain all pledged funds without having to hit a pre-determined target.
“We are very pleased to offer the most flexible and affordable option in crowdfunding software,” said co-founder Ziv Aviv. “Now, those who want to find funding for their creative projects will be able to keep almost all of the money they earn instead of having to pay hefty fees to the crowdfunding company. No matter how much you’ve raised at E-Fundie, it’s yours.”
The platform is open to all manner of projects. The logic of removing the all-or-nothing system is that the often considerable amount of money and time spent crafting a project pitch will not be a wasted effort – even if a campaign falls shy of its target. The allure of E-Fundie is all about fund retention.
“We saw many projects at other platforms that either didn’t reach the goal and got nothing or did get funding and had to pay huge fees of 5 to 15 percent along with shipping and other fees,” said Aviv. “With all those fees, entrepreneurs and creative are often unable to have the full funding they need to make their dreams reality.”
One potential pitfall in E-Fundie’s makeup is the perks system. The website states that: “You must fulfill any perks promised to your donors at the completion of the project”. Rewards/perks tend to relate to the product which a crowdfunding campaign will create, i.e. a budding director may offer donors a first screening of his film. Without the all-or-nothing model in place, it is going to be difficult for entrepreneurs to confidently offer product-based rewards. How will the director bring donors to the premiere of a film for which he/she has only received half the necessary funds? We will be keen to see how E-Fundie navigates this issue.