If you’re looking to raise funds for a personal creative project in Malaysia, you may want to consider crowdfunding. By crowdfunding, we are referring to individuals and organisations raising funds through people on the internet. Also, those who contribute funds (i.e. pledges) don’t receive an equity stake in the project but instead are eligible for rewards and incentives if the project is successful.
One of the most successful crowdfunding websites in the world is Kickstarter.com, which we discussed in a previous post. However, if you aren’t a permanent resident of the US, UK or Canada then you won’t be able to raise money through Kickstarter; you’ll only be able to pledge money to help someone else develop their project.
Fortunately, there are a few local crowdfunding sites emerging in Malaysia, which might just revive your hope of getting that creative project out there. Below are three to consider.
1. Pitchin.my
Operating since: June 2012
Pros: Covers all types of projects. Successfully funded 11 out of 20 projects.
Cons: Paypal only, currently does not support bank transfers, raises barrier to fund for backers.
Fees: 8.5% of total financial pledges
Most successful project: TeeSomethingNice, T-shirts with a patriotic purpose. It had a goal of $1,000 (approx. RM 3,290) and concluded its campaign with $7,382 (approx. RM 24,261) from 68 pitchers (i.e. people who pledged/contributed money to the project).
2. SocialSharity.com
Operating since: 2012
Pros: The first social engagement portal with crowdfunding. Uses MOLpay for bank transfers. No minimum
Cons: Must register as a non-profit organisation, non-government organisation, or social enterprise. Only valid for social projects.
Fees: 8% of total financial pledges
Most successful project: Christmas and Back to School Cheer, a project to fund Pusat Jagaan Siddhartan that provides school supplies to orphans and disabled children. It’s the only successfully funded campaign out of five campaigns listed on SocialSharity.com. This campaign had a goal of RM 2,160, and the project concluded raised RM 2,266.80 from 21 donors.
3. Mystartr.com
Operating since: March 2012
Pros: Also uses MOLpay for bank transfers. Has a total of seven successful projects.
Cons: Not available for charities or causes. (alternatives are as above)
Fees: 15% of financial pledges
Most successfully project: Portraits of Perseverance, a documentary about Jenny Pong Seow Chin and her ability to carry on after several tragedies, including a stillborn child that caused her to fall into a coma for two years due to postnatal viral infection. This project successfully raised RM14,741 from 58 backers and had an original goal of RM 12,000.
Malaysia is still young in terms of accepting crowdfunding as a viable source of funding. In terms of backing projects, the idea of investing money into a project without immediate rewards has to be offset by the familiarity and recognition of campaign creators. On the other hand, campaign creators can’t just rely on crowdfunding sites to reach out to the mass market. These successful campaigns have proven that crowdfunding works but has yet to fully mature in Malaysia.
What are your thoughts about crowdfunding in Malaysia? Post a thought in the comments below.
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