Crowdfunding vs. investment based funding

One of the key questions we encounter in almost all discussions is if Idyabooster is a crowdfunding platform. The comparison with large global players like Kickstarter and Indigogo is natural as Idyabooster focuses on funding for creative projects

So here goes: Idyabooster is not a crowdfunding platform. It is an investment based funding platform that uses technology to bring curated projects to investors looking to invest in a new asset class

The key feature of a crowdfunding platform is that the funders are not expecting financial returns i.e. the money is not an investment but a contribution towards the project

So a crowdfunded project, offers one or more of the following to its funders

• Rewards: Signed T-shirts by the lead actors
• Incentives: attend a premier show with cast and crew
• Acknowledgement: Associate producer
• Participation: Act in the movie

An investment-based platform on the other hand, brings curated investible projects to investors looking primarily for financial returns

So an investment based funding will work as any other investment focusing on

• Investment Opportunity: both equity and debt
• Returns on investment: either valuation, dividend or interest
• Revenue Potential: A great project also needs to make money
• Risk Evaluation: Each project is evaluated on its risk and earning potential

While an investment in any creative project can have any of the above rewards mentioned in crowdfunding, those are add-ons and projects will get funded only when they look financially viability 

As a new breed of creators reach out to a new set of investors, Idyabooster is looking to build a market of technology-enabled investments for smaller budget, independent productions that are viable both from creativity and profitability perspectives