Top 6 Crowdfunding platforms in the Philippines
Development in information and communication technology makes a significant impact in the financial environment of any market – including a developing country such as the Philippines. Recent financial innovations make it easier for people to access financial assistance through what they call “crowdfunding.”
The crowdfunding approach involves three parties: (1) the project initiator; (2) the supporter; and, (3) the online platform that brings the project initiator and the supporter together. In the Philippines, they have begun recognizing different forms of crowdfunding activities: lending-based, equity-based, reward-based and donation-based.
Lending- and Equity-Based Crowdfunding
Instead of getting a personal loan from usual financial institutions (e.g banks), lending-based crowdfunding is where supporters lend money to a project initiator and receive the latter’s commitment to repay the loan at predetermined time period with interest; on the other hand, equity-based crowdfunding is where supporters invest in shares sold by a project initiator and the former receives a share of profit. Although these two types of fundraising are different in manner, they mostly target small to medium enterprises who need financial assistance to raise their business capital.
Philippines remains an agricultural country with almost 42% of land area dedicated to growing crops such as rice, corn, coconut, sugarcane and more. That’s why Cropital is a great crowdfunding platform to not only help farm owners with sustaining their main source of income, but also have an option for supporters to earn money online. This crowdfunding platform charges 5% service fee for every investment made by supporters, and net funds donated will directly go to farmers. Once harvest ends and all crops have been sold, supporters will earn a fixed percentage from farm profits. One farmer (and his supporters) who has had a successful crop harvest is Mang Roberto.
This is a creative crowdfunding type as supporters get to experience the products being promoted in exchange for their support in the project.
The Spark Project definitely sparks interest among Filipino artisans who are looking for a crowdfunding platform for their creative innovations. Although creativity is a requirement in opening a campaign via this crowdfunding platform, project initiators are expected to do the heavy work in promoting their projects due to the platform charges – 15% of total funds if your goal is not achieved, and 10% if you do (on top of the $50 setup fee). The first podcast for Filipina athletes has its beginnings here.
Similarly, Indiegogo has started as a platform for entrepreneurs to launch new and groundbreaking products for everyday problems; and since reaching its 10 year mark last 2019, it has diversified into more categories including that of community projects. Although Philippines accounts use the site more often for community projects such Bayanihan Fund and The Bells of Balangiga charging them with a 5% platform fee, Indiegogo remains to have more projects for tech & innovation and creative work categories providing a product reward experience for supporters.
This is the most famous crowdfunding type in the Philippines. With the Philippines’ poverty rate still at 19.8% according to World Bank, projects that are categorized under this crowdfunding activity are those for supporters to send in funds to sponsor a charity. Popular charitable causes range from animal care to rehabilitation projects to disaster funds.
Gava is one known go-to platform for social and charitable causes. With 19 categories to choose from, its top category contains projects focusing on medical care – more than 40% of total live campaigns at a time. With their diverse payment options available from credit card transactions to online banking to over-the-counter payments, campaigns may run in a flexible manner (reach your goal to end the project) or fixed manner (set an end date for your project); and, as it ends, project initiators may withdraw their funds with a 5% platform fee. Nonprofit organizations such as the Virlanie Foundation and the Children of Asia have been funded through Gava.
With no actual site for Philippines accounts, GoGetFunding boasts itself a variety of project categories initiators can create from – including extraordinary projects like weddings, honeymoons and sports. Although it has flexibility in category types, supporters only have the option to send in funds via one payment route i.e. PayPal plus a 2.9% processing fee. But the assurance of getting those funds directly to project initiators are kept intact by giving them the option to withdraw any time just like projects made by Eduardo Ramos, Tatiana Fermo and Aden Ray.
Airfunding goes beyond the crowdfunding’s one-way relationship i.e. the relationship between project initiator and supporter ends when the latter has sent donation. Airfunding is an online community for people with common goals and dreams, and work together to achieve them. From medical assistance to simple family projects or disaster funds to traveling around the world, a project initiator gets to know people within their community and even internationally to get support and gain awareness for their advocacy. For the hospitable Filipinos, coming together for a common goal is a philosophy they value most especially for a cause close to their heart like what Dhalia Torremoro has done.
Decades ago, “helping” in the Philippines has been limited to religious sector, nonprofit organizations or charitable foundations, and has been a practice among the rich giving to the less fortunate. However, with all these crowdfunding platforms now available in just one click, it has turned a new leaf for Filipinos as they give more meaning to helping their fellowmen through peer-to-peer fundraising network. Whatever status in life anyone may be in and for whatever advocacy they are pursuing, start helping today!