The economic impact of the COVID-19 pandemic adversely affected the financial outlook for millions of people, and continues to cause significant fiscal distress to millions more, but such challenging times have also wrought a more resilient and resourceful financial system.
With the ingenuity of crowdfunding, considered to be one of the last decade’s greatest “success stories,” and such desperate times calling for bold new ways to finance a wide variety of COVID-19 relief efforts, we are now seeing an excellent opportunity for banks and other financial institutions to partner with crowdfunding platforms and campaigns, bolstering their efforts and impact.
COVID-19 crowdfunding: A world of possibilities to help others
Before considering how financial institutions can assist with crowdfunding campaigns, we must first look at the diverse array of impressive results from this financing option during the pandemic. As people choose between paying the rent or buying groceries, and countless other despairing circumstances, we must look to some of the more inventive ways businesses, entrepreneurs and people in general are using crowdfunding to provide the COVID-19 relief that cash-strapped consumers with maxed-out or poor credit do not have access to or the government has not provided.
Some great examples of COVID-19 crowdfunding at its best include the following:
- Consider Woks for Washington, in which a pair of sisters set up a GoFundMe page to raise funds that contribute to paying local restaurants to provide meals for essential workers, the homeless, and others in need, inspired by World Central Kitchen’s own programs.
- Or look at Kingston Mines, the historic and famous blues club in Chicago, where a similar crowdfunding campaign literally kept the lights on and the hot water running.
- Then, of course, there is the most obvious COVID-19 relief solution out there: A more functional face mask (or a more fashionable face mask) to improve protection for everyone from contracting the coronavirus.
The possibilities presented by crowdfunding in this age of the coronavirus are endless, and financial institutions can certainly lend their assistance. Here is how.
1. Acknowledge that crowdfunding is not a trend
Crowdfunding is a substantial and ever-so relevant means of financing all sorts of businesses, people and products. Denying its substantive contribution to the economy, especially in digital finance during this pandemic, is akin to wearing a monocle when you actually need glasses for both of your eyes. Do not be shortsighted on this. Crowdfunding is here to stay. In fact, countless crowdfunding businesses and platforms continue to make major moves within the markets globally. For example, Parpera from Australia, in coordination with the equity-crowdfunding platforms, hopes to rival the likes of GoFundMe, Kickstarter and Indiegogo.
2. Be willing to invest in crowdfunded campaigns
This might seem contrary to the original purpose of these campaigns, but the right amount of seed-cash infusions to campaigns that are aligned with your goals as a company is a win-win for both you and the entrepreneurs or causes, especially now in such desperate times of need.
3. Get involved in the community and its crowdfunding efforts
This means that small businesses and medium-sized businesses within your institution’s community could use your help. Consider investing in crowdfunding campaigns similar to the ones mentioned earlier. Better yet, bridge the gaps between financial institutions and crowdfunding platforms and campaigns so that smaller businesses get the opportunities they need to survive through these difficult times.
4. Enable sustainable development goals (SDG)
Last month, the United Nations Development Program released a report proclaiming that digital finance is now allowing people from all over the world to customize and personalize their money-management experiences such that their financial needs have the potential to be more readily and sufficiently met. Financial institutions willing to work as a partner with crowdfunding platforms and campaigns will further these goals and set society up for a more robust rebound from any possible detrimental effects of the COVID-19 recession.
5. Lend your regulatory expertise to this relatively new industry
Other countries are already beginning to figure out better ways to regulate the crowdfunding financing industry, such as the recent updates to the European Union’s handling of crowdfunding regulations, set to take effect this fall. Well-established financial institutions can lend their support in defining the policies and standard operating procedures for crowdfunding even during such a chaotic time as the COVID-19 pandemic. Doing so will ensure fair and equitable financing for all, at least, in theory.
While originally born out of either philanthropy or early-adopting innovation, depending on the situation, person or product, crowdfunding has become an increasingly reliable means of providing COVID-19 economic relief when other organizations, including the government and some banks, cannot provide sufficient assistance. Financial institutions must lend their vast expertise, knowledge and resources to these worthy causes; after all, we are all in this together.
Real-world results show users prefer to wait on COVID-19 vaccine dose, refer to a physician for guidance on timing, according to a new survey from Medisafe, a digital therapeutics platform that supports users with advanced medication management. The survey reveals sixty-five percent of patients say they will wait to receive the forthcoming COVID-19 vaccine even if it becomes available before the end of 2020. The majority of survey participants cited uncertainty in its overall effectiveness and potential side-effects from the vaccine as top reasons for the delay.
Read more here.
The post [Medisafe in HIT Consultant] Consumers Cite Trump as Leading Driver of COVID-19 Vaccine Skepticism appeared first on OurCrowd Blog.
On today’s episode of StartupNation Radio, Jeff chats with Kathryn Petralia and Amanda Lewan. Both guests speak to the changes that their respective businesses have faced as a result of the COVID-19 pandemic.
First up, Jeff speaks with Kathryn Petralia, co-founder of Kabbage, an online financial technology company that provides funding directly to small businesses. Since its founding in 2009, Kabbage has provided more than $ 6 billion to SMBs through a fully-automated platform that allows customers to apply in minutes.
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During the show, Petralia discusses:
- Her background in entrepreneurship and how she fell in love with being her own boss
- The early days of Kabbage
- The key steps in building Kabbage, from idea to the massive success it is today
- How Kabbage has pivoted during the COVID-19 crisis
- Where Kabbage is headed
For more information on Kabbage, visit the official website.
Next, Jeff introduces Amanda Lewan, co-founder and CEO of Bamboo Detroit, a co-working and shared office space in Detroit. Currently, Bamboo has approximately 200 hundred startup companies in its incubator.
During the segment, Lewan talks about:
- How Bamboo pivoted to a virtual environment at the onset of the COVID-19 crisis
- The behavioral changes related to co-working that will stick post-pandemic
- How work from home will be the new normal
- How the pandemic will impact the future of co-working spaces
- What Bamboo is doing to make its space safe during the pandemic
For more on Bamboo Detroit and its virtual membership option, check out the official website.
Tune in to the full show below:
In addition to weekly StartupNation Radio programming, tune in to News/Talk 760 AM WJR weekday mornings at 7:11 a.m. for the WJR Business Beat. Listeners outside of the Detroit area can listen live HERE.
Do you have a great entrepreneurial success story to share? Tell us your story here and you could be featured on an upcoming episode of StartupNation Radio.
The post StartupNation Radio: Kabbage and Bamboo Detroit on COVID-19 Impact appeared first on StartupNation.
The coronavirus outbreak triggered a worldwide economic recession, forcing both small and large companies to find ways to survive. Startups and SMEs have suffered the most due to a shortage of resources, a limited number of suppliers, and lower revenues. The US Census Bureau conducted a survey to estimate the influence of COVID-19 on small…
The post How can startups and SMEs cut costs in the time of the COVID-19 crisis? (Sponsored) first appeared on EU-Startups.