Hack Manhattan, a crowdfunded hackerspace

Hack Manhattan is a so-called "hackerspace", which is a workplace filled with tools allowing designers and hackers to realise their ideas. At first, we thought hackers were strictly criminal computer programmers. The hackerspace, however, disproved this completely. The term "hacker" was used in a very different context. It referred to designers adjusting or building electronics for creative means. For example, one of their stunning (crowdfunded) projects includes a ping-pong game that can be controlled entirely by brainwaves:

The community does not have a clearly defined hierarchy or boss, all of the approximately 50 members have an equal status. Every member has a key of the workplace, and has an equal vote for decisions in their regular meetings. Especially this flat organisational structure makes the project unique.

When Hack Manhattan wanted to expand their workplace, they required funding for the removal of a brick-wall. Because no single individual owned or ran the place, traditional sources of funding were impossible. Bank loans are simply not given to a non-profit organisation without making a single person legally responsible. Crowdfunding offered a solution. Due to its simple legal structure, members and others in the community were willing and able to contribute to the expansion of the hackerspace.

Only a few hundred dollar was necessary for the garbage disposal of the demolished wall, so the $1,769 raised was more than enough. The rest of the expansion plans were executed on a voluntary basis. The case of Hack Manhattan really demonstrates the power of crowdfunding for circumventing complex legislation surrounding traditional financing. Crowdfunding can play an important role in non-profit organisations lacking a capital buffer.

We were impressed by the way the hackerspace was run. The small workplace was sufficient to allow for the community to realise and share their unique ideas. Read more about their current projects on their website: hackmanhattan.com!

CrowdsUnite, advising the world on crowdfunding platforms

Wednesday, we have had the chance to interview Alex Feldman who founded CrowdsUnite. His company does not offer a crowdfunding platform, but rather focuses on the education and advising side. CrowdsUnite maintains a database with more than 400 crowdfunding platforms, each of them reviewed with regard to their features, popularity and costs. They also give workshops to entrepreneurs to spread their knowledge on crowdfunding.

One strength of crowdfunding Alex particularly emphasised, was the removal of the middleman. The government can be seen as a large intermediate between the taxes and public goods. By taking out this party, an individual can choose to fund his or her own needs within the neighbourhood directly. Crowdfunding allows everyone to convey their support for a project, which gives direct feedback on the desire of the project. It also creates a community by connecting the people involved in the project.

We also asked Alex whether the growing number of platforms is a positive development. Accordingly, he answered that many crowdfunding websites target a niche market and offer features specific to that market. For example, some platforms are exclusively for the funding of novels. When someone donates, he or she will also be kept up to date on the writing process and potential sequences. Such features do not exists with the larger, well-known general platforms like Kickstarter and Indiegogo. However, he still expects many platforms to cease existing in the future.

If the government would like to stimulate the use of crowdfunding in community projects, Alex would definitely recommend the creation of a custom platform. The city of Rotterdam can also be seen as a niche market, exclusively for its citizens. Alex even hypothesised about converting part of income taxes to credit on the city's crowdfunding platform, so people have a more direct influence on the allocation of their tax money.

We learnt a lot about Alex Feldman's expertise on crowdfunding platforms. If you seek a comparison between crowdfunding platforms we would strongly advise you to take a look on his website: crowdsunite.com

Teresa's park, a serene streetcorner in the middle of Manhattan

Our first interview of the week was with Michael Keeler, an initiator of the Teresa's park crowdfunding campaign last year. The initiative to renovate the small grimy street corner came from Mark Fisher Fitness which is a fitness center neighbouring the unused lot. Together with the professional expertise of Clinton Housing Development Company, they decided to raise enough money to plant trees and flowers, build a little terrace and add benches. The result is a green and serene corner open to the community of Manhattan. 

Before

The target of the campaign was $2,500, an amount which was already reached in the first four days! In the end more than 10 thousand dollar was collected. As seen with other projects, the rewards for contributing to the project included the possibility of writing one's name on a plague placed in the park. The clients of the fitness center played a significant role in raising this amount. But, also the neighbouring community played a substantial role by financing and contributing time. Instead of outsourcing the construction process, the largest part was realised by volunteers. 

Volunteering 

Especially the volunteering element led to connecting different individuals within the community. On one hand the people living in the surroundings were introduced to each other, on the other hand the clients of the fitness center got involved with the neighbourhood. Currently, the park is used as a place to have lunch,  but also as an area to organise small events like music nights. 

After

For us this project was especially interesting because it showed how a small scale project can involve a broad community. In the end, a very tangible result is delivered to the neighbourhood. An area which would normally go unnoticed by the local government, has been converted to a pleasant park thanks to the help of crowdfunding. 

Kickstarter, the king of crowdfunding platforms

Kickstarter is by far the largest crowdfunding platform in existence. Up to today 64,391 have successfully been funded through their website. Today we had the honour to visit their brand new headquarters in Brooklyn.

Kickstarter has the most amazing work place we had ever seen. A few months ago the crowdfunding platform Kickstarter moved to an old, yet fully refurnished factory building. An old-school library, spacious halls and an amazing terrace, all filled with young creative minds, combine to a most inspiring atmosphere. And the iced coffee machine was definitely the icing on the cake.

On the top terrace, we had the honour to interview Stephanie Pereira, the person in charge of international and civic partnerships for Kickstarter, therefore the perfect interviewee for our research. She joined the company three years ago, at which only 28 employees worked for Kickstarter. Now, Kickstarter has grown to more than 90 employees and still continues its rapid growth, also internationally. Stephanie recently expanded Kickstarter's coverage across Europe, including the Netherlands.

Stephanie believed the involvement of city government in crowdfunding is improving, but still has much more potential. She gave as an example the current shrinking of art subsidy budgets of local governments due to the economic crisis. Crowdfunding can provide an alternative funding source for artists. Instead of subsidising entire art projects, the government can set an agreement to contribute the last part of the funding target. Thus, when a project raises a large amount, the government recognises the general interest of the public in the art piece. If the project, nevertheless, does not reach its funding target, the municipality has the ability to finance the remaining amount.

We also enquired Stephanie's view on success recipes for civic crowdfunding campaigns. Her main message was that every project is unique, therefore no single holy grail can be identified. One thing she did stress was the strength of transparent ownership of the project. The initiator has to take on a clear identity and communicate intensively with his or her community.

Kickstarter is extremely keen to build partnerships with local governments in order to assist in stimulating entrepreneurship and raising awareness of crowdfunding. When we return to the Netherlands we will definitely connect Stephanie to the relevant members of the municipality of Rotterdam. Cooperation between Kickstarter and American local governments has already been initiated. Following this example, Rotterdam could grab the chance to take a leading position in crowdfunding in Europe.

Interested in contributing to or commencing your own crowdfunding campaign? Have a look on their website: www.kickstarter.com.

Free Bread Inc. gluten-free bread for everyone

We paid an interesting visit to Free Bread Inc. this morning. The company, which bakes and sells gluten-free bread, is run by Karen Freer. In 2008 Karen was diagnosed with celiac disease, meaning she could no longer eat anything containing gluten. During her new diet, she realized that New York missed good, crusty gluten-free bread. At home, she started baking her own. A friend told her to start selling it and gave Karen the first fifty dollars to set up her new business.  Karen was driven to realize her company and heard about the crowdfunding platform Indiegogo. Within three days, she launched her campaign without any preparation to raise $10,500.

The campaign started in 2011 and lasted 100 days. Karen posted a video almost everyday promoting Free Bread Inc. and provided regular updates on Facebook. During the campaign, she developed a business plan and worked on recipes. In Karen’s case, most of the donations she received came from friends and family. She told us that all of the 95 funders received a handwritten thank-you-letter. So next to baking, Karen spent a significant amount of time writing. Other rewards included free hugs (apparently the biggest, goofiest and most ridiculous hug possible), babysit service and a garage clean. The latter was never performed, because who in New York owns a garage? She managed to reach her goal with a final amount of $10,771.

The money raised was sufficient to acquire all the necessary equipment, ingredients, and the rent for a workplace. Free Bread Inc. is now located in the Organic Food Incubator. This facility rents out spaces for startups that aim to sell organic food and drinks. Karen’s gluten-free bread is produced here, together with other products such as organic juices and ice-cream. These different entrepreneurs often work together by providing each other with (parts of) their products.

The atmosphere was great. After a tour of the Organic Food Incubator, we had the chance to try Karen’s amazing Moxy rolls and she was so kind to send us home with an entire loaf of bread! Three years after the campaign, Free Bread Inc. is still up and running and even growing. To see the delicious breads they sell, visit www.freebreadinc.com! 

New Work City, a community coworking center

This morning we visited New Work City, which is a community coworking center on Broadway 412. Tony Bacigalupo decided to professionalise a "jelly group" of entrepreneurs in 2010. When the popularity of his jelly group expanded and outgrew cafés and his living room, a crowdfunding campaign was organised to set up New Work City. By raising $17,911, the group managed to rent a large space that gives access to independents to run their business in an inspiring and friendly work environment.

The perks which were rewarded to donators were of particular interest. Ten dollar awarded a simple name reference on their Thank You page, but $100 made you "Mayor" for a day. An entire day you would be in charge of the work place. The largest donation amount was especially noteworthy. One thousand dollars gave the donator a "personalized karaoke party" by founder Tony. As a result, a total of four people backed the project with a $1000 contribution.

The amount that their Kickstarter campaign raised was sufficient to decorate the space, build a kitchen and provide tables and chairs. Nowadays, a sustainable business model allows them to be independent of further donations. A paid membership is required to profit from the offered services, but in return for volunteering a reduction in this fee can be earned. Around 150 persons are currently member and more than 25 individuals are daily visitors of New Work City. Most people come from the direct neighbourhood, but the place is popular for independents from all around New York.

New Work City is an excellent example how a crowdfunding campaign can kickstart a sustainable business model. Their dynamic work space allows entrepreneurs to network and share ideas, which helps people to kickstart their own ideas too. Visit their website for more information here.

+Pool, a floating filtering pool in the East River

We just returned from our interview with visionary Archie Lee Coates, co-founder of +Pool. The idea is to construct a floating pool in the East River which both serves as a water filter and recreational swimming pool. Highly advanced technology will filter the polluted river's water, and at the same time the citizens of New York can enjoy a swim in the river. 

Archie works for a design company Playlab situated in Brooklyn. In 2010 the idea of the +Pool came to mind. At first the concept was intended as an exercise, but when the idea caught attention of the engineering company Arup and a larger crowd, they took the project more serious. A total of 15 million dollar is needed to execute the different phases of the +Pool. Numerous prototypes have to be build to test the complex filtering systems. At first this amount seemed highly unrealistic. Nevertheless, in 2011 a Kickstarter project with a goal of 25,000 dollar was enacted. Within a mere six days the target was reached. At the end an impressive $46,000 was collected. At this moment they realised their project was popular among a large audience.

Playlab decided to spread the word in the city of New York. A large number of organisations were contacted to ask for support. The idea caught on. Instead of $25,000, they decided to launch a crowdfunding project targeting for 250 thousand dollar. People who donated could write a message on one of the tiles used in the construction of the pool, a concept similar to that of the luchtsingel in Rotterdam. After an intensive campaign they managed to raise an impressive $273,000. 

Although a large amount has been collected, a lot more is necessary to progress in the development. Playlab hopes that companies or the municipality of New York could financially support their project. They have composed a board with professionals to help plan and manage the future of +Pool. Archie aims to have their grand opening in 2016. The idea of a +Pool has already travelled across the world. Playlab has been asked to advise people from around the world with regard to their advanced water filtering methods. 

Archie is convinced many good ideas to improve New York City come from its inhabitants. Crowdfunding is a good method of filtering great ideas from lesser ones. The municipality should especially be aware of projects that managed to successfully complete their crowdfunding targets since this affirms their popularity among a large population. 

In our opinion this is a unique project that is highly relevant in a world where environmental issues increase in importance. We have already purchased a tile to support +Pool's future! For more information, or if you would also like to contribute a tile please visit their website: www.pluspool.org!