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Is Crowdfunding a Good Option for Your Research?

March 22, 2016


Is Crowdfunding a Good Option for Your Research

Picture this… It’s 8am. You take your first sip of coffee, ready to start your day. You check your email and…

You find out your latest grant application didn’t get funded. Bummer.

You give it a couple of days to get over the feeling of rejection, and then start working on your next application. Rinse and repeat until you either: 1) land the grant that will keep your research program going, or 2) run out of funding and have to leave academia.

You tell yourself that in an era of budget austerity, this is just what a researcher’s life entails.

Then, in a flight of fancy, you image that maybe it doesn’t have to be this way. Maybe you could crowdfund your next research project and show the narrow-minded review committees you were right. After all, if glowing plants raised half a million dollars, you could raise $10,000 to run your study. No?

Well, maybe.

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Crowdfunding can be a viable option to obtain research funds, but it’s hard work and it’s not a cash machine. So if you’re thinking about crowdfunding one of your research projects, use this Q&A to help you decide whether it’s worth the effort.

Q: How much money can I raise through crowdfunding?

A: Like so much in life, it depends.

Based on a range of estimates, the vast majority of research crowdfunding campaigns to date have raised $7,000 or less.

Some research teams, however, have managed to raise a whole lot more. If you happen to be working on Ebola during a panic-inducing epidemic, you can raise a hundred thousand dollars in short order. In fact, medical research campaigns seem to be able to raise significantly more than the average figures. A study published in Drug Discovery Today, for example, found that 97 crowdfunding campaigns focused on cancer research raised an average of about $45,500 each.

The larger amounts raised by many medical research projects are in large part due to alliances between researchers and existing medical research foundations, who are typically much better placed to raise money. The Tisch MS Center, for example, recently raised over $300,000 on Indiegogo to help fund a Phase I clinical trial of a stem cell therapy for multiple sclerosis. And in perhaps the most impressive example to date, a coalition of foundations have raised over $2 million to support a Phase I trial for Abeona Therapeutics’ experimental gene therapy for Sanfillipo Syndrome.

Long story short, the amount you can plausibly raise through crowdfunding will depend on how appealing your project is to potential donors and on how big of an audience you have at your disposal, but will most likely be under $10,000.

Q: What can I do to increase my chances of success?

A: Build an audience.

Fundraising takes a lot of work. Ultimately, you’ll only attract sufficient donations if you actually ask a lot of people for money. This means you’ll have to go beyond your own personal network, and the single most important thing you can do to make that easier is to invest in building a personal following long before you even think about launching a crowdfunding campaign.

Thankfully, social media makes this possible even if you don’t get invited to appear on TV on a regular basis. In fact, building up a sizeable online audience could be worth tens of thousands of crowdfunding dollars a year. Twitter, email, and the number of media contacts fundraisers made, for example, were the three key drivers of donations in the #SciFund Challenge campaigns. In fact, taken together, Facebook (38%) and Twitter (12%) drove half of the total traffic to Hubbub, a crowdfunding service provider that focuses on higher education and non-profits. So you really need to build your online network if you’re going to crowdfund.

One thing to keep in mind is that running even a small crowdfunding campaign can help to build your audience, and that the true value of your audience goes way beyond the money you raise in your first campaign. Not only can you go back to your donors in subsequent crowdfunding campaigns, but if you keep engaging with your new followers, they will also follow you over the course of your career, and could potentially connect you to new collaborators, high-net-worth philanthropists, and investors years down the line.

Q: Which crowdfunding platform should I use?

A: It probably doesn’t matter much.

If you’ve built a large following before launching a campaign (you have, haven’t you?), then the choice of crowdfunding platform is less important than you might think, since you’ll be driving most donors to the fundraising page yourself. That said, there are a range of options.

Most smaller projects use one of the niche research-focused portals. Some of these have geographic limitations about where project creators can be based, and you’ll want to check with your university to make sure that your campaign complies with institutional policies. Be warned that most of these sites also take a percentage of any money donated (usually between 5% and 10%) as a commission.

An alternative might be to use your university’s own crowdfunding portal. More and more universities are creating their own crowdfunding sites for faculty, staff, students, and alumni to use, and they typically do not take a cut of the donations. In addition, the service providers used by many of these universities, such as Hubbub, offer in-person training and marketing advice for prospective fundraisers. If your university doesn’t have its own platform, you might also consider Hubbub’s open crowdfunding site, which doesn’t take any commissions.

Finally, a new set of online fundraising platforms for researchers are aiming to move beyond the traditional campaign-centered crowdfunding model, and to fund researchers instead of research projects. If you’re interested in doing video-based science outreach and getting viewers to “sponsor” you, you can try Thinkable, and if you’re thinking about fundraising to support your medical research lab over the long-term, you might want to check out LabCures.

Ultimately, though, the choice of platform is not as important as actually starting to talk to the public about your research and building a community of supporters.

Q:  So should I try to crowdfund my research?

A: Yes, if the conditions are right.

For most researchers (i.e., if you’re not already a super-star with a huge media presence), crowdfunding might make sense if you meet any or all of these three criteria:

  • You have an experiment that you could do for under $10,000, and data from this experiment could help you to attract funding from other sources.
  • You have a very marketable topic and/or you have the backing of a foundation or other group with an existing network of donors and supporters.
  • You want to build your online network as a long-term investment – i.e., it’s not about the money, but crowdfunding can provide the impetus for you to put in the work necessary to build your network.

And if you’re still not sure, you can always ask the crowd.

What do you think? Have you looked to crowdfunding to enable your research, or are thinking about putting together your first campaign?

Source: bit.ly/1Rsov0a