On Christmas Day I was delighted to receive a unique gift from my husband: a watch made of an iPod Nano. (see gorgeous photo) I love this watch. It makes me look infinitely cooler than I am, it rocks my favorite songs without worrying that my dancing is going to jerk the earplugs out of my computer, and I don’t know anyone else who has one. It was the gift trifecta. All this for about 30 bucks. (OK I forced him to tell me this)
On December 16, 2010 TikTok+LunaTik raised just shy of $1million making it the single highest fundraising success story of the incredibly compelling crowdfunding website Kickstarter. As you know, Kickstarter’s tagline “Find and Fund Creativity” pretty much sums up their approach: people can post projects/ideas/plays/films/books almost anything, and ask for financial support to get the project done. Investors pay only when sufficient funds have been raised for project completion.
And what was TikTok’s record-setting project? To manufacture a wristband that turns an iPod Nano into a wristwatch. Their original fundraising goal: $15,000. So, some might say, TikTok raised close to $1 million to produce a product that already existed on the market.
You should know that I LOVE Kickstarter. I have funded a few of their projects – ones with knock-your-socks-off originality and potential for human connection and impact. And have no regrets.
But the story of TikTok’s incredible fundraising success raised questions for me about crowdfunding. Some of these questions may have some implications for philanthropic crowdfunding which is also experiencing a meteoric rise.
- Enthusiasm should not be confused with due diligence. Crowdfunding depends upon friends telling friends. So if a friend sends you a link and says, “I’m really excited about this and you should be too!” it can create a groundswell of activity. A groundswell isn’t inherently good or bad, so how do we tell whether the underlying principle is one or the other?
- The one-at-a-time nature of a project’s presentation and consideration (often via email or Twitter) means that the ability to compare the strengths and weaknesses of one project idea against similar projects is almost non-existent. It can heighten our belief in the radical uniqueness of the project before us, which may or may not be true. Traditional philanthropy which gathers all the proposals and reviews them side-by-side skews SLOW whereas crowdfunding skews FAST. How do we take the best of both?
But it is also true that:
- TikTok offered people a chance to feel like insiders in the creative process of a well-designed product, something more and more people value. It also gave the company a clear indication of product demand. Is there a way to harness the predictive capacities of crowdsourcing to enhance philanthropy and social innovation? Perhaps new giving sites such as Crowdrise, Groupon (with its Kiva partnership) or Philanthroper will show us the way.
- Updates and information are critical. The fact that TikTok included photos and video from its manufacturing plant in China was probably compelling for people who are interested in being included in the whole chain of production from design to delivery.
- Crowdfunding is fun! It’s what I like to call excited philanthropy. Ultimately, Kickstarter helps people feel a part of a community of like-minds. That feeling of community is the jet fuel in the “crowd”-engine. And maybe the crowd doesn’t have to do it perfectly every time, just better than the other alternatives.
My hat is off to Kickstarter and these other pioneering sites for being platforms for a new type of funding. They are pushing the boundaries of collective thinking and giving. And hats off to TikTok for passing a huge crowdfunding milestone. But I can’t help wonder if any of the 13,512 TikTok investors might feel a little ticked-off when they see me walking down the street in what looks like their million dollar watch.
What excites you/gives you pause in the rise of crowdfunded philanthropy?
Full Disclosure: My husband works for Apple which makes the iPod Nano. Apple does not make an iPod Nano wristwatch holder.