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Crowdfunding: what it is and why it matters

Hub Helsinki is fully into a crowdsourcing activity now. Some of you have certainly been invited to take part of it, some of you may be wondering what the heaven that means. In a nutshell, crowdsourcing is when an organization—instead of appealing to contractors—give a public call for action regarding a specific need, be it software development, translation services… or building up a new house for Hub Helsinki!

The idea is relatively simple: instead of resorting on a bank loan that keeps the traditional way of making things happen—an entity has the idea, the other has the money—Hub Helsinki is trying out a new way of bringing its ambition to life: to inspire and support imaginative and enterprising initiatives for a better world. So why not focusing the efforts in getting the Hub community actively engaged in the project?

Here is how it works in practical terms: you can contribute with any amount starting from 10€ to be given as a loan. Interest rate is 1% and will be paid back as a lump sum after 3 years. Alternatively, you can buy a piece of Hub Helsinki for 500€ and, through this, join the current co-owners in making the decision on how to go forward, besides other benefits.

Crowdfunding also encourages creative and fun ways to be involved. We have currently two challenges going on: (1) one of our micro investors has given us a loan of 2,500€ and is willing to match whoever loan exceeds his offer up to 7,500€; and (2) as stated on our previous blog post, one of our lenders has promised 5€ for each “No” answer anyone would get by asking their connections a loan for Hub Helsinki, to a maximum of 25€ per participant.

So, are you up for the challenge? By doing that you are being a change agent in experimenting new, participatory ways of doing business. Who would be best to build the new Hub Helsinki than the Hub community itself?

For more information about how to contribute to the crowdfunding project at Hub Helsinki, check out the project page.

Want to know more about croudsourcing? Read Knowmads’ blog post on the topic or check out the Wikipedia article.