What is Nettfunder?
Nettfunder is a platform for all people looking to develop their innovative ideas and projects. Such creative people include engineers, scientists, developers, designers, filmmakers, musicians, artists, journalists, software developers, event organisers, entrepreneurs, importers and inventors. Nettfunder is like a crowdfunding platform and assists the Creator in gaining support for the project.
What is crowdfunding?
According to Wikipedia, crowdfunding is the coming together of Backers, generally through internet, to fund project ideas of other individuals/companies. This is done based on trust and we believe it is the most feasible way to muster support and generate funding so that ideas can become realities.
How does it work?
Nettfunder offers a platform for innovative and creative individuals, groups and companies (we call these Creators) to gain funding for their project by selling tangible and intangible perks we call these Perks to supporters of the project we call these Backers. The project Creator sets a funding goal they expect to be pledged to their project and a time limit. The time limit is usually between 30 to 45 days and the funding goal can be any amount. Then the project Creator advertises and promotes their project to friends, family, fans, Backers and raise pledges for the project within the pre-specified time limit. Those willing to pledge to the project simply do so via the payment pages on the website for that project.
What is “all or nothing” crowdfunding?
The project must raise an amount of funds equal to or more than the funding goal within the pre-specified time limit. The amount and time limit has to be clearly set in the beginning of the project and is fixed for the duration of the project. In cases where projects do not reach their funding goals within the time limit, the Creator forfeits all pledges and no funds are collected from Backers.
What is the project deadline and funding goal?
As previously mentioned, the project Creator has to pre-set a funding goal to be raised and a time-limit within which these funds must be raised. We normally advice a time limit to be 30-45 days, however you can have a time limit of anything between 14-90 days. Apart from any technical adjustment to the project, the deadline of all projects is 12 noon on the last day. Backers can pledge funds until this time but not after as this is a firm deadline.
What happens when the project reaches its deadline?
There are two possible outcomes when the project reaches its deadline:
Successful Funding: In cases where the project reaches its funding goal before the time limit is reached the Creator all funding will be collected forthwith! The amount of pledges made using will be instantly transferred to the accounts as provided by the Creator (in cases where Paypal or similar online payment method is used). Where pledges are made via credit card these will take seven (7) days after the project time limit (deadline) has been reached via a bank account as provided by the Backer. From this point onwards, Creators are liable to complete the project and fulfil the pledges promised to the Backers.
Unsuccessful Funding: No funds are transferred and all pledges are revoked. Nevertheless, don’t lose hope. Go back to the start, plan again and retry. The project Creator will not be charged any fees.
Does Nettfunder collect a fee for this service?
Nettfunder only collects fees in the scenario of successful funding, not otherwise.
Nettfunder Service Fee:
Standard = 5%
Debit / Credit Card on Nettfunder: 2.4% + 30c (Australian card) / 3.4% + 30c (international card) for each transaction.
When does Nettfunder start collecting the pledges?
Nettfunder collects the pledges as soon as the targeted amount of funding is reached within the time limit. The payments from online gateways such as PayPal are collected instantly when 100% funding amount is reached. Time is allowed for Backers and project Creators to discuss and work out any declined transactions or payment problems we normally allow 7 days after project deadline to do this.
Is there anything that isn’t allowed to be a project?
The details on the types of projects accepted by Nettfunder can be attained on our Project Guidelines.
Is it possible to raise more money than the project’s goal?
Projects can definitely carry on gaining funding until the deadline! And you definitely exceed the targeted amount. Continue promoting your project even if you have raised the targeted amount.
What are Perks?
Perks are basically your Unique Selling Proposition (USP), those factors that motivate Backers to fund your projects as compared to others! What you offer should be something which no one else is. So when you are establishing your perks, remember to be innovative! The second main reason for having perks is that nothing in this world is for free! So you give perks to the Backers to thank them for their funding. Other than some prohibitions, mentioned in our Project Guidelines, Nettfunder allows project Creators to plan out different levels of perks for different levels of funding. The availability and number of perks are under the Creator’s control.
What can be offered?
Creators can offer whatever they want but it should be something that influences your Backers to support your project, so think out of the box! Whether it is an mp3 download or a party in London, be confident. Just ensure that you are following the Project Guidelines and aren’t offering financial returns as perks. More importantly, make sure perks are calculated and deliverable.
Who is responsible for delivering the perks?
The perk delivery is the responsibility of the Project Creators; Nettfunder simply offers a platform for promoting the project and the perks. In cases where the Creator is not able to provide the promised perks to all Backers, the Creator is in violation of the consumer law and as described by the state laws, might have to return in full the funding received from the Backers.
Can projects be edited after launch?
Once a project is launched it is expected that the Creator will meet all the commitments promised at the launch. In this way no edits are allowed to the Project Title, Time-frame, Funding Goal, Start-date Sold Perks, and Description. Ensure spelling is checked for these items. However, featured image, featured video, other images, additions to description and changes and additions to Perks unsold is ok.
What if my pledged payment is declined?
In such a scenario, your issue may be resolved by simply logging on to Nettfunder and clicking on the resubmit button on the banner present at the page top. This will transfer you to a secure payment portal. Here you can re-provide your credit/debit card details and re-submit. Upon processing of your payment, you will receive notification as a pop-up as well as a confirmation email that your card details have been accepted.
Can I resubmit my project if unsuccessful?
The project may be resubmitted with proper planning. You would need to revisit your marketing campaign and highlight those aspects that will convince us that your project is likely to be successful the second time.
Are pledges tax deductible?
Pledges are not tax-deductible since Nettfunder does not hold Deductible Gift Recipient status. In case the project Creator holds such status, tax-deductible receipts must be provided by the Creator. The Creator is obliged to support the paperwork for this.
What currencies does Nettfunder support?
Following are the currencies used across the World, in which you can set funding targets, perks and pledges:
How does Nettfunder determine which projects appear on the front page?
The appearance on the front page is not request based, rather it is based on an algorithm measuring various factors such as number of visitors/clicks, amount and frequency of pledges etc. However, being on the front page does not matter. What matters is your marketing campaign for successfully promoting your project.
Where can I download the Nettfunder logo?
Contact admin and we can provide you our logo.
Can charity organisations use Nettfunder to raise funds?
Charity organizations can use Nettfunder to gain funds for any innovative projects, not as a donation to their charity.
What is the funnel web?
The funnel web is Nettfunder’s step by step process Creators can follow for their innovations. The funnel web starts with a Creator, a Creator would visit the Showcase pages first as there are lots of articles on innovation to get inspiration from. Then with an idea in hand a Creator would use the pin-board to promote the idea to a few or many friends and colleague and other experts to get feedback and shape the idea. When the creator is ready they can run a crowdfunding campaign, beyond that if they need support for the development of the idea there are recommended developers and business consultants that can make the most of the project turning into a successful product and business.
Why are backers part of the Funnel Web?
Backers at Nettfunder are more than just people with money to pledge. At Nettfunder, Backers provide much needed guidance and feedback to Creators in the early phases of the project such as via the Pinboard, they are the first to offer support to promote the projects. Backers have status within Nettfunder and with that status they are offered lots of early-bird deals, they are first to receive rewards for this. Backers can be invited to be a Lead Backer and be first to have access to the rewards and earn cash when others in their network pledge support for a project.
How do I become a Lead Backer?
Lead Backers are invited by Nettfunder for each project as it approaches the campaign phase. The invitation is based on several factors including; the status of the Backer, the degree of involvement in that project to date, past history in promoting projects and contributions to the innovation process at Nettfunder. Also, Nettfunder believes in being fair and sharing the Lead Backer invitations randomly to all its members, this is a lottery and one or more Lead Backers are selected at random for each campaign. To be a lead backer, members must be part of Nettfunder’s loyalty program.
What is a Technology project?
At Nettfunder we offer the opportunity for Creators to generate funds for technology and for products. The difference is that whereas products are all-or-nothing based funding, technology is keep-all funding. Products are real tangible items that are delivered to Backers after the successful campaign, such items may include; electronics, software, games, housewares, widgets, gadgets essentially anything that you could buy in a shop. Technology based campaigns do not produce any of these items, instead the funds raised are used to developing a technology for example a new 3D printing process, a new material in science, a new mathematical process a new method for scrubbing CO2 from the atmosphere. Essentially, technology based campaigns are for the common good and Backers are rewarded mostly for being a part of the process, rather than for a product.
Why should I join the loyalty program?
The Loyalty program is the way members are rewarded for their contributions to the innovation process at Nettfunder. Nettfunder rewards its members with the highest rank first invitation to the best deals including the Lead Backer roles. See the Loyalty page for more details.
What is the Network Funding Program (NFP)?
This is how Backers can be financially rewarded for promoting a project at Nettfunder. When a Backer pledges support for a project and that pledge is part of the NFP then they can earn cash when other people in their network also pledge support to the same project. The amount each party earns throughout the process is set down at the start of the project campaign and cannot be changed until the project completes. To see how this works visit the Earn/Cash page and run the simulator.