Позитивные изменения. Том 2, №4 (2022). Positive changes. Volume 2, Issue 4 (2022)

The word “crowdfunding” is often hard to pronounce or spell in Russian — this is how the local meme “crowd-something” appeared on Planeta.ru. It reflects one of the problems of the crowdfunding industry — the problem of self-identification. Many people have heard that crowdfunding is “something to do with raising money online.” In fact, this is only part of the definition. Crowdfunding is different from philanthropy or co-sponsorship in that each project is limited to a specific financial goal and time frame. Prior to launching a campaign, its authors estimate how much money they would need to implement the initiative and how long it would take them to raise these funds. Repayment is an important rule of crowdfunding: if the money is not raised within the specified period, the platform returns it to the investors in full, and the project is deemed a failure.

Most crowdfunding platforms around the world operate on an all-or-nothing principle: the authors receive the funds raised only if their stated financial goal is reached in full. But Planeta.ru has less strict conditions, taking into account the peculiarities of the Russian mentality, so a project can be considered a success as long as it manages to raise at least half of the financial goal. As Fedor Murachkovskiy, Planeta.ru CEO and co-founder, explains, crowdfunding in Russia often works like crowdsourcing, that is, attracting resources rather than money. During a project's promo campaign (which is mandatory if you want to raise funds on the platform), you may well find people ready to contribute their hands to it.

So, for example, authors of the “Gallery of House Painting of the Kama Region” project managed to raise just 282 thousand rubles out of the 500 thousand declared, yet they consider their project quite a success, way more than 50 %. Large companies and private patrons learned about the new landmark on Solikamsk's cultural map from social networks and the media, and they got actively involved in setting up the gallery. One company provided the museum with equipment, another donated flooring and plumbing fixtures, and yet another offered a significant discount on the lighting installation. Which brings us to an important conclusion: crowdfunding is not only a fundraiser, but also an excellent PR tool that allows you to talk about an idea when it is still a concept, gather a community around it, and assess its relevance.

People supporting crowdfunding projects receive non-financial rewards — various bonuses related to the future project in one way or another. If an author wants to crowdfund a book, it makes sense to offer a copy for support. If the plan is to open an inclusive café, people can pay for a cup of coffee in advance. If you decide to renovate some public space, you might as well invite the project contributors to the opening party for free. At the same time, the possibility of reward is not the only motivating factor, and often not the main one. People participate in this kind of initiatives out of a sense of belonging, sympathy, or respect for the campaign organizers. According to a study by Planeta.ru, 34 % of users support projects out of a desire to solve a problem. Let us tell you how we managed to do it together in several regions.

TURYSH HONEY

Social entrepreneur Guzel Sanzhapova is perhaps the most famous heroine of Russian crowdfunding. In 2013, she launched her first crowdfunding project to help her father, who had inherited an apiary in the village of Maly Turysh, Sverdlovsk region. Guzel came up with the idea of whipping honey with added wild berries. Thus was born the “Small Turysh” family business (Cocco Bello before rebranding), which started employing villagers. Since then, Guzel has successfully completed six more crowdsourcing campaigns to the total tune of 9.5 million rubles. Guzel Sanzhapova's last three campaigns on Planeta.ru are dedicated to building a community center in the village — a modern 850-square-meter building that will include a bakery, a store, an education space and a tourist hub. She admits that she used to think her business was about honey, “but really it's about developing the territory, and honey is just one part of a larger problem.”