Crowdfunding platforms have been connecting entrepreneurs and backers for years now, revolutionizing the way we think about raising money and bringing products to market. We even held a sold-out conference covering the topic in Hong Kong two weeks ago.
As backers, we’ve never felt more personally invested in a product and its makers. Those startups that have built successful campaigns can all attest to the fact that crowdfunding platforms have helped changed their brand, products and relationship with their customers.
As a pioneer in Hong Kong’s crowdfunding space, Maryann Hwee is no stranger to novel ideas and new business models. With over two decades of experience in direct investment in IT businesses, Maryann has backed a lot of early stage ventures in power generation, infrastructure, telecom, mobile, green energy, life sciences and the internet.
And it’s this inclination for young and creative ideas that she created FringeBacker, a bilingual crowdfunding platform dedicated to artistic projects whether in film, music, performance or technology, just to name a few. Although generally a lot of creative projects aren’t seen as profitable by investors, Maryann says that thanks to new technology – artists can now bring their ideas and products to market without much help.
“You no longer have to go through the traditional channel anymore. In publishing, music or art, you don’t need to go through curator or a publishing company,” she said. “With technology, you can publish a book with a minimum order of 100 copies or even produce your own music album.”
It’s this game changer that also simplifies the financial backing process, and Maryann likens crowdfunding to a great equalizer between both backers and project owners. “The whole crowdfunding platform makes it a fair game, there’s a lot of transparency because you can see who’s in and who’s not,” she said. “You can see the amount of funding they’ve raised so far and you can read the whole proposal. There is a lot more protection for backers and for the project owners as well.”
The value in a crowdfunding platform like FringeBacker is the rigorous screening process. While some might see it as a barrier, Maryann says the vetting process actually helps project owners gain surer footing in their business plans. “The screening helps them a lot, because they have to pass that vetting. If they’re not ready yet, it’ll help push them ahead,” she said. “With their proposed budget in mind, we ask them: how do they plan on marketing their campaign? Who are these people you plan on reaching out to?”
Throughout the strict vetting process, project owners have the opportunity to revise, refine and resubmit their proposals to Maryann until she thinks they’re ready to start the campaign. She says that along with the screening process, which readies artists or startups for the real world responsibility of running a business, building a solid network of backers is also a plus point for investors.
“If you successfully gain that loyal base of early supporters, I think you’re increasing your odds of getting financial investment. If you’re an entrepreneur, this is what investors would like to see – that you’re all-rounded,” she said. According to Maryann, even if an investor thinks that a product or technology is great, they still worry about the founder being unable to run a business properly. Building a robust and loyal network of customers helps instill that confidence.
In the past while, we’ve gotten to know several Hong Kong-based crowdfunding platforms all tackling different niches. To name a few, we’ve got FringeBacker who focuses on supporting creatives, Bigcolors who raises capital for startups and Crowdbaron for real-estate crowdfunding. Following our Startup Saturday event on this very topic, we predict that there will be many more Hong Kong-based crowdfunding platforms that help bring ideas to life by harnessing the power of the masses.
Maryann Hwee on Startbase.HK: Maryann Hwee
FringeBacker on Startbase.HK: FringeBacker
