Spacehive operates an all–or–nothing 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.