How does the all-or-nothing crowdfunding model work?

Spacehive operates an allornothing model, which means that if you don’t hit your target, none of the pledges are collected. This can seem daunting at first however it has many benefits.

  • It helps you raise more money than possible with a keep-it-all model due to the sense of urgency it creates.
  • It’s less risk for everyone. If you need £5,000, it’s not much good having £1,000 and crowd of people expecting you to complete a £5,000 project.
  • It’s easier to make backers part with their money. They will only be charged if you hit your target and deliver some community transformation.
  • It works. 53% of Spacehive projects are successful, which is much higher than the crowdfunding industry standard.

Once the initial funding target has been reached, projects can continue to raise additional funds to make the project even bigger and better in overfunding. If the project has overfunding enabled, details of how the extra funds will be spent are explained on the project page and backers can choose whether to keep pledging towards those cost items too. Find out more about overfunding here.

By |2018-11-22T15:13:35+00:00June 6th, 2016|

About the Author:

From teaching in the Tanzanian mountains to the digital universe of Spacehive, Aaron has stopped off in a few places along the way. After receiving an MA in Publishing from Oxford Brookes University, she worked for big internationals including Oxford University Press and the International Labour Organization, small but interesting types including Pambazuka Press and Internet Retailing Magazine before heading up the award-winning eSeller.net. Looking for her next big adventure she joined Spacehive as their Content Marketing Manager. Here she works the words whether describing the awesome potential of a civic crowdfunded future or outlining the many dazzling features of our grant-making software. She gets to meet the project creators and share their stories as well as working with our partners to ensure they have the material they need to make impact. Outside of work she mentors with The Girls’ Network, solves mysteries and once made jam from the blackberries in her garden of which she is inordinately proud.