In 2013, IMC was contracted by DfID to conduct a review of Crowdfunding for Development Initiatives and provide a summary of crowdfunding initiatives that support developing country entrepreneurs. The purpose of the paper was to present an overview of the crowdfunding industry to help DFID assess the need and value of supporting such initiatives – particularly for climate and environment innovations.
The desk-based research approach undertaken for this study involved qualitative and quantitative analysis of information sourced from academic literature and the web. It provides an overview of the main concepts of crowdfunding and the role of crowdfunding in the development sector. It also provides an outline of the different crowdfunding models including donation-based, reward-based, social lending, lending and equity.
For each model, we describe the types of projects supported, average funding amount, frequency, financing arrangements, fees, funders, due diligence processes and rates of success. We also provide examples of relevant platforms, generic platforms and projects for each model. Lastly, this paper presents a range of examples of crowdfunded projects with a focus on pro-poor energy technology.