What and Who of Fixed and Flexible funding campaigns

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One of the key things to dwell on before you launch your crowdfunding campaign is to decide on how much to raise? What should be the funding goal that is just enough?

However, another crucial question to address that can have a significant influence on the success of your campaign is whether to go for a fixed or a flexible funding goal. There are crowdfunding portals like indiegogo that allow for flexible as well as fixed goals to be set. On the other hand, a few sites like Kickstarter allow only and only fixed funding goals.

What is Flexible funding?

Flexible funding implies you do not have to reach the 100% goal on a mandatory basis to get the funds. That means if you have launched a campaign with a set goal of $10000 and you raise $8500 only. You will still get to use that money. Many investors do not approve of this methodology, as it creates room for fraud and scams happening. On the other hand, the pioneer of this concept Indiegogo stresses on the benefits of this concept and has created a niche for themselves after taking up big time on this revolutionary funding style.

Who is it most suitable for?

Flexible funding method is best for campaigns that are donation-based. Those looking money for some kind of charity can readily leverage from this concept. Raising money through crowdfunding campaign involves a good amount of hard work and some expenses too. Moreover, campaigns relating music, or films that can still be executed in a little less budget than the set one can also benefit immensely from this kind of funding option.

What is Fixed Funding?

In one word with Fixed Funding method you get ‘All’ or ‘Nothing.’ That means if your set goal is $10000, you will need to raise at least $10000 to get hold of that money. In case you could raise only $9990, you will get nothing at all. All the money raised in the event of a failed crowdfunding of fixed funding nature is reimbursed to the supporters. The method is a safer one for the investor’s community. Nonetheless, you can never say that a project that duly reached the 100% funding goal or even ended up as an overfunded campaign will deliver on its promises.

Who is it most suitable for?

The fixed funding goal is the method that is widely used as the sole funding option in most of the crowdfunding portals. After all, that is the flagship style. The flexible funding process is apt for those trying to fund a gadget or any kind of product. That is because when you set a goal, which is the minimum amount to manufacture a specific product; in that case, you need at least that much of it. Any amount less than that would mean no product or a product of low quality. Moreover, those looking to validate their ideas through crowdfunding should strictly stick to the fixed funding method. Otherwise, there will never be able to find out if their concept could truly pass the test.


This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated byCoAssets.com.
CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email [email protected]


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