APR 21, 2014
Dana.io Aims to Shake up the Crowdfunding World
A new Vancouver-based crowd-funding platform is set for launch and will charge by donation only, challenging the business policy of such for-profit platforms.
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Be afraid, be very afraid, Kickstarter and Indigogo. A new Vancouver-based crowd-funding platform is set for launch and will charge by donation only, challenging the business policy of such for-profit platforms.
The Dana.io platform is non-profit and is scheduled to launch on May 14, which coincides with the birthday of Buddha.
The founder of the platform, Alan Clements, explains that the idea came to him when he visited Burma in 1979 and that dana means "'the practice of generosity” and "io" as inflow and outflow. "Thus the name," he said.
One of the biggest reasons for the founding of Dana.io was the series of roadblocks Clements faced as he was working on a crowd-funded book in Burma. Scott Nelson, the company’s chief technology officer explained that anytime the word “Burma” came up – which was all the time as the project was about the country – both Indigogo and Paypal would pull their support and funding from the campaign.
“They have it on a government list of countries you’re not supposed to do business with,” Nelson explained. Among other hurdles that Clements faced were fees that can be quite substantial.
Industry giants like Kickstarter apply a 5% fee of the funds collected plus 3% per pledge in payment processing fees. Indigogo charges 4% or 9% depending on the plan selected as well as a 3% processing fee per pledge along with a $US 25 wire transfer fee for each donation made to a campaign if it is outside of the US.
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