Crowdfunding has become a part of the landscape largely through platforms that have legitimized its variations from Kiva's microlending to Kickstarters' rewards-based crowdfunding. With equity crowdfunding still on the way in the States and most crowdfunding platforms project rather than business-based, there haven't been many options for crowdfunding a new business rewards-style. Local Lift is a new rewards-based crowdfunding platform for local brick & mortar businesses like record stores and clubs.
Local Lift is starting small in Austin and New Orleans but the potential for what they're doing is quite large. Basically they offer rewards-based crowdfunding for small businesses emphasizing local support and opening a mostly new line of funding.
Austin Drum Company Crowdfunding Campaign
How It Works: Businesses set a goal and offer rewards, much like a Kickstarter campaign, and supporters pledge and pick rewards. This is not a loan. Businesses get the money and fulfill rewards.
Fees include "approximately 2.9% of funds raised + $0.30 per transaction" for Stripe and Local Lift takes 7% of money raised during the campaign.
Local Lift offers flexible funding rather than all-or-nothing campaigns.
You can find out more about Austin Drum Company's campaign from the above video and about Local Lift campaigns from their company blog.
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Hypebot Senior Contributor Clyde Smith (@fluxresearch) is also beta blogging at DanceLand. To suggest topics about music tech, DIY music biz or music marketing for Hypebot, contact: clyde(at)fluxresearch(dot)com.