The Development of a Social Entrepreneurship Ecosystem

Bill Drayton, founder of Ashoka and social entrepreneurship visionary, is fond of asking parents, firstly, “what would you do if your child was failing maths?” Parents instinctively have an answer for this. They would spend more time with them doing their home, get them a tutor, buy a math training program. Then he asked, “what would you do if your child was failing to develop as a changemaker?” and the answers come much less readily.

How do we create a culture of changemaking in young people? By giving them opportunities to share their ideas and participate in creating change of course!

You get better at maths by doing more maths. You get better at sport by joining a team,  practicing and playing. We have clear pathways for gaining expertise in academics and sports but it’s only more recently that we’ve begun to see a focus on providing changemaking experiences for people at a younger age and preparing them for active citizenship.

This is something Ashoka has understood for some time, having launched Ashoka Youth Venture over ten years ago to support 16-20 year-olds to develop their own initiatives, and more recently establishing AshokaU to foster a culture of entrepreneurship on college campuses.  In Australia we’ve seen the establishment of the School for Social Entrepreneurs, who run year-long courses supporting emerging social entrepreneurs of all ages to launch and scale social impact ventures and, on the opposite end of the spectrum, of Social Startup 48, a startup weekend-style event for aspiring changemakers. I’m proud to say all the above organisations are partners of StartSomeGood.

I’m also thrilled to see more and more organisations using StartSomeGood to fill gaps in this ecosystem of opportunity, inspiring, mentoring and training young people to create the future they wish to see.

One Can Grow finished a successful fundraiser on our site just a couple of weeks ago and is piloting a social entrepreneurship training program for students at three high school in Sydney. Hope Empowered is currently raising funds to engage an even younger cohort in entrepreneurial activity with their Academy for Young Entrepreneurs Initiative which will focus at the primary school level. (If you like the sound of this please chip in here). And the organisation I founded 12 years ago, Vibewire, has just, as of this writing, hit the tipping point of their StartSomeGood fundraising campaign to support three younger social entrepreneurs (under 35) to work on issues of critical importance including mental health and sustainable design.

At StartSomeGood we believe that social entrepreneurs need three types of capital to succeed: financial, intellectual and relational. Our mission is to reduce the barriers to raising early-stage financial capital for nonprofits and changemakers through peerfunding (also called crowdfunding). As these barriers come down more social entrepreneurs are stepping up to launch programs which general these other forms of capital, teaching skills and providing community for aspiring social entrepreneurs.

So these initiatives and those like them expand the answer to how to encourage your child to learn changemaking skills will become more apparent and a new generation of changemakers and entrepreneurs will, from an early age, know they can create the future we all need.

How do you think we could better support young changemakers?

Peers vs Crowds

Language matters. It frames our expectations and can limit or expand our thinking. I’ve written before about my preference for the term “peerfunding” over “crowdfunding”. More recently I’ve begun to see a spectrum of activities which can be more crowd or peer-focused, making both terms relevant but the distinction important.

To me, crowdsourcing is a competitive process – the crowd is either helping select amongst alternatives or competing to win an award. As an example, GeniusRocket is a design crowdsourcing site – their community competes via the submission of ideas and proposals, to have their work selected and be paid by GeniusRocket’s clients.

The Pepsi Refresh Project is another example of the crowd in action. The crowd is helping Pepsi select where to invest its philanthropic dollars. It’s crowdsourcing because it’s a large mass of people who have little-to-no contact with each other making submissions, in the form of votes here and designs with GeniusRocket, to the organizer of the contest.

What Creating the Future is doing, on the other hand, is peersourcing. They have invited their community to co-create the criteria and process of the scholarship fund they recently raised funds for on StartSomeGood.

In this instance the participants are not an anonymous “crowd” and they are not competing with each other. Instead they are co-creating something together. They are peers, colleagues, collaborators. Whilst the number of responses isn’t large the quality of thinking behind the responses makes them enormously valuable.

If we simply refer to Pepsi Refresh, GeniusRocket and what Creating The Future are doing as “crowdsourcing” I think we are missing a key differentiator between them. I am loath to create more jargon but I fear that calling collaborative efforts like Creating The Future, or the way Beth Kanter aggregates contributions and best practices through wiki’s, Facebook and her blog crowdsourcing is to miss the most important aspect of these approaches: that they build a community of peers and invite co-creation, rather than setting up the “crowd” to compete for the organizers favor.

I believe what we and our ventures do at StartSomeGood is peerfunding rather than crowdfunding. On StartSomeGood, as with other fundraising platforms for entrepreneurs and creatives, the majority of the funding comes from the fundraisers existing community. Supporters feel an affiliation for the project and affection for the organizer, or connect to the cause via a shared identity or experience. These funders are not a crowd, they are peers, and they will be your most important asset in creating change.

I’m thrilled to see a project which was successfully peerfunded on StartSomeGood now move on to peersourcing the details of how the scholarship will work. Check out their thinking so far and feel free to contribute!

Got an Idea to Change the World? The Time is Now!

It’s amazing to me how different starting a social change initiative is now to what I went through starting Vibewire ten years ago. There now exists the most incredible infrastructure for anyone with an idea to communicate it and find others who share your interests, to build a team of contributors from anywhere on earth and inspire people with your vision and story. It's so easy to share your voice through blogs and microblogs. If writing is not your thing video is cheaper and more accessible than ever. Social networks make it so much easier to maintain and engage with your friends, contacts and acquaintances, to share your new idea and seek feedback and support. A growing diversity of options allows you to fundraise around your idea in a variety of ways: not only those options which have traditionally existed for registered charities but various online competitions and new crowdfunding options for all sorts of different projects.

If you’re a social entrepreneur StartSomeGood , of which I am a co-founder, exists to help you turn your ideas into action and impact. If you have a social change idea you’re ready to start working on, or you’ve done a pilot you and want to expand, or have a great idea for a new product or service, then we want to hear from you! StartSomeGood is now accepting applications to be featured on our platform when it goes live in late February.

StartSomeGood is a Kickstarter-like crowdfunding platform for social good projects. Campaigns can be run by pro-profit, nonprofit, associations and unincorporated groups. In other word, your legal status doesn’t matter; your vision and drive does.

To qualify to be featured on StartSomeGood your initiative must:

•    be social-impact focused;

•    be creating social impact through your actual operations (ie. We want to support implementers, not simply fundraising programs passing funds on);

•    have a specific project which will be funded by your StartSomeGood campaign (launching a business/organization counts as a project);

•    have a compelling pitch, watchable-video and decent marketing plan.

You can apply now at www.StartSomeGood.com/apply. StartSomeGood.com will go live before the end of the month and we would love to have you be part of it!

The world is full of entrenched problems that need new thinking, of causes that need new champions. Creating the change we need will take all of us, contributing in myriad ways. Some as the entrepreneurs; some as supporters and advocates and storytellers. There has never been a time with more ways to make a difference than the moment we live in. There has never been a better time to tell your story, share your idea and start some good.

What is the future you wish to create?

Announcing StartSomeGood

A few months ago a friend from DC, Alex Budak, called me about a social enterprise he was starting called StartSomeGood. The idea, simply put, was to create a crowdfunding (or peerfunding) platform for social change initiatives. He wanted to know if I wanted to be involved in an advisory capacity, helping him design the communications and outreach strategy for the company. I was happy to agree, both because I’m always up for helping a friend and because the idea itself was compelling. While the crowdfunding model has been proved by sites such as Kickstarter and FundBreak these sites are exclusively for creative projects. There is a clear opportunity and a need to provide this service to the social sector.

Over the past few months I’ve been working with Alex to refine the vision and product. Over this time I have felt myself get more and more drawn in, and more and more excited about the potential of the project. We have refined our model to make it more distinct and, we think, better adapted for the sector we seek to serve. We realized that success would require more than just advice; Alex needed a collaborator equally-committed to the success of the enterprise. And so I’m really excited to announce that I’m joining as a full co-founder with Alex, and that we should be launching our site next month.

Why launch StartSomeGood.com?

There are so many people with ideas for how they want to make a difference in the world, yet they lack the resources that they need to get started.  StartSomeGood connects budding social entrepreneurs with the financial and intellectual capital that they need -- all in a fun, engaging and community-driven way.  Our site taps into the power of the crowd, allowing social entrepreneurs to ask for small amounts of money from lots of different people - rather than hope for one lump sum.  This crowdfunding model is becoming increasingly well-established, especially in the arts, and we believe it is perfect for supporting the launch and development of social change organizations.

Over the past 10 years an incredible online fundraising infrastructure has been created for social change organizations. Organizations can fundraise through Facebook and Twitter, supporters can establish their own fundraisers on platforms like Razoo, Global Giving can help you support projects in the developing world from the comfort of home. But almost all the infrastructure that exists has been created exclusively for use by only one type of organization: tax-deductible nonprofits. And we all know that there are many ways to make a difference other than simply establishing a new charity.

In all the commentary about the Kickstarter the most overlooked aspect of their success is the fact that they allowed fundraising by unincorporated groups. The two sectors where a huge amount of value is created by unincorporated groups are the creative industries and the social change movement. StartSomeGood will allow any type of group, unincorporated, nonprofit and for profit to find supporters and raise funds for social good projects. Having been part of many grassroots initiatives I know how much good gets created by small teams, formed for discrete projects. We hope to help more people make a difference in their community.

Ultimately our goal is to contribute to creating a world where every person has access to the financial, intellectual and relational capital they need to become changemakers, where every person can create the future they wish to inhabit.

How is StartSomeGood different from other crowdfunding sites?

StartSomeGood has several critical differentiators from existing crowdfunding platforms:

• We focus on social change organizations. The biggest existing crowdfunding platforms, Kickstarter in the US and FundBreak in Australia, are exclusive to creative projects. We want to provide this same functionality to social entrepreneurs working to address poverty, crime, climate change and more.
• Blended-risk fundraising model. Kickstarter and FundBreak both use the all-or-nothing fundraising model. This makes perfect sense of creative projects, many of which have specific fundraising tipping points (enough money to print the book, finish the film, go on tour, etc). IndieGoGo allows you to keep whatever you raise, regardless of how you did against your stated goal. StartSomeGood will have a blended model, whereby an initial amount is all-or-nothing, depending on the specific tipping point of that project/organization, but there is also a best-case goal beyond that, which they can keep any funds raised towards. This allows the individual entrepreneur to set their own level of risk/reward, as it should be.
• StartSomeGood is based around both organizations and projects. Social change organizations can maintain permanent profiles fueled by dynamic feeds, aggregating and building their community of supporters across multiple fundraising campaigns.
• The StartSomeGood platform will allow for not only financial contributions but other forms of probono support needed by social entrepreneurs.

Get Involved:

Do you think this sounds exciting? Do you want to help? Great!

Support our fundraiser on IndieGoGo – we are currently fundraising on another crowdfunding platform, IndieGoGo, and would love your support. You get half of your contribution back in the form of a voucher to pay forward to a social good organization on our site when it goes live. So you'll not only be supporting the launch of our new social enterprise but another beyond that! The remaining funds will support our outreach and promotion around the launch (including competitions to give away more vouchers, most of it will ultimately flow directly to the enterprises launching on our site), hosting costs, etc. This modest amount of start-up funding is important to allowing us to launch effectively, and having pre-committed funds ready to support new enterprises is critical to building early momentum when we launch.  Please contribute.

Help us find great ventures – task 1 for us is to find inspiring initiatives to help launch. We have several really exciting groups lined up for the launch but are looking for more. If you know of a great social change initiative looking to launch in the next six months please put them in touch.

Become a StartSomeGood Mobilizer – we are recruiting a team of Mobilizers to help get the word out, people who are passionate about social change and innovation, enjoy meeting new people and talking up new things. I am so thrilled with the caliber of people who have agreed to get involved, thank you friends! But there are gaps in our network so if this sounds like you or someone you know I’d love to hear from you, especially if you are in Perth, Adelaide, Toronto, Vancouver, Seattle, Portland, Chicago, Denver, Boston, Philadelphia, or Pittsburgh.

Stay in the loop – if you would like to be the first to know when the site goes live please sign up for our newsletter at www.StartSomeGood.com.

I'm very excited to be commencing on this journey. I think there's a real opportunity to create something sustainable of real value, and to learn a lot along the way. I look forward to your support and collaboration and to starting some good in 2011!

The new world of peer-funded projects

I have a confession to make. I'm a crowdfunding addict. Or as I think of these emerging platforms: peer-funding. For the first time projects can be funded by those who share the passion and vision of the creator. In other words, not the anonymous crowd, but your global peers getting together and saying "let's make this happen". That's new, powerful and very cool.

Peerfunding (or crowdfunding, if we must) is the facilitation of numerous small contributions to fund specific, time-limited, projects. Crowdfunding is an offshoot of crowdsourcing, the buzz term from a couple of years ago that gave us talent-mobilizing sites such as GeniusRocket for creative and InnoCentive for scientific problem-solving, outsourcing these functions to the crowd. But this new breed of sites are different, and not just because they are asking for money instead of logo designs or film concepts. Crowdsourcing is focused on producing a unique high-quality contribution (be it logo or film or chemical breakthrough), harvested from the crowd, these new funding platforms work cumulatively. Just as Barack Obama proved the power of small dollar fundraising in the political world we are now seeing the power of small dollar philanthropy in new sectors, especially the arts.

This model first caught my attention in the lead-up to this year's Burning Man, as numerous arts collective raised funds for their projects on Kickstarter. It was really exciting to see some of the amazing things in development and to be able to support in my own modest way a couple of projects I thought were most exciting. And I'll admit it, I did it for the perks too, including the promise of a ride on a very cool artcar (which I never took them up on sadly).

The focus on perks is another unique feature of this model of these new platforms. Across all the leading sites it is required that projects articulate "perks" for their funders. And I don't mean the usual "feel good about yourself" perks, I mean "give me something cool" perks. This works perfectly for many creative projects that are object-oriented - if it's a zine or book you can receive it (signed!), if a film you get a dvd or a credit, if an exhibition or catelogue a print. Digital projects tend towards the thank-you pages and downloads of code (woot). At the higher amounts everyone has to get more creative: dinner with the artist; consulting; an event at your house; an award in your honour.

It's all fun stuff, and it beautifully fuses the line between philanthropy and straight-up shopping. I have always enjoyed purchasing hand-made zines, now I simply pre-buy them and in so doing give the creator the confidence and funds to make it. I enjoy film, and spend money on a Netflix subscription, so why not actually chip in to see documentaries on issues I think are interesting or important made? Some of the projects on Kickstarter in particular have blown out their fundraising targets by seemingly-absurd amounts, raising 1000%+ of their goal, but this is usually really just an unexpected run on a groovy new product. Being quasi-philanthropy and quasi-shopping simultaneously attracts more supporters than either approach alone would engender.

Over the past few months I have supported the publication of zines both micro-micro and merely niche via Kickstarter, production of a documentary on avant-guarde culture in Jerusalem via IndieGoGo, a series of social change posters via LoudSauce and the relaunch of a much-loved independent media website via the Australian FundBreak. There is also Spot.us, which supporters journalistic projects.

These sites are not all the same. Kickstarter and Fundbreak are exclusive to creative projects while IndieGoGo is broader and LoudSauce and Spot.us even narrower, specifically funding public interest advertising campaigns and journalism respectively. All of these sites except for IndieGoGo operate on an "all-or-nothing" model whereby if the project doesn't raise its target by the deadline they receive none of it, with all contributions returned. This is a perfect fit for creative projects (and advertising campaigns) that have very specific amounts required to produce the project (whether it's printing costs or tv time) or else it can't happen at all. There's a necessary tipping point. If it project doesn't raise the necessary funds then the commitments are returned and its no-hard-feelings. It gives a security to contributors that the project will really happen or their money back and for creatives it reassures them that if necessary funds aren't raised they're not on the hook to those who have contributed thus far.

Not all types of projects have this tipping point and currently only IndieGoGo caters to them with a keep-what-you-raise system. This can create another, also important, sort of confidence, that those supporters people have been able to mobilize will see their support realized and delivered.

The biggest gap I see in the peerfunding space currently, in addition to having several valuable niches currently unserved, is that they are all based around one-off projects. There's nowhere where you can create a stable profile for an organization or enterprise and then fundraise for specific projects over time - building a community across these projects and deepening your engagement with these supporters. I'll have more to say about this soon.

Have you contributed to any projects on a peerfunding platform? What do you think is working and how could it be better?