One of the most popular methods of raising capital for a new project is through crowd funding, but at times it can appear as both overused and calculating.
Musicians commonly use this vehicle to gather funds for new recordings. I recognize that artists rarely make a living wage. Touring costs, vehicle repairs, food on the road, paying for accommodations, studio and production time, all create exorbitant costs that eat into their marginal financial returns. However I have limitations when it comes to profit making companies requesting funding for new business endeavours.
A Toronto based company recently began a crowd funding campaign to raise $40,000 US for a proposed Christian and Gospel music streaming service in Canada. For the company involved it’s was unsuccessful, garnering only $250 US by the end of the campaign.
I’m well aware that individuals help fund a wide range of worthy enterprises. Perhaps I’m being overtly critical, but should not a line be drawn between those who truly have a genuine need and businesses that should be dealing with a financial institution?