In March 2018, Munich's crowdfunding program launched as a pilot project unique in Germany. After one year, we're taking stock. The state capital supported 20 projects, with a total of nearly €50,000 flowing into the projects in grants. But this is only a small part of the success story.
Exactly one year ago, on March 1, 2018, the municipal funding program to support creative services for crowdfunding campaigns, the company launched as a nationwide pioneer. €30,000 in grants were available, which project starters could apply for at Referat für Arbeit und Wirtschaft.
Nationwide pioneer: Munich crowdfunding support
However, the original funding amount was already exhausted by September. Fifteen projects had applied for funding to support them in professionally preparing their crowdfunding campaigns. So the Munich Department of Economic Affairs increased the amount. Five additional crowdfunding projects from local creatives received support in creating high-quality videos, texts, a logo, or a social media strategy. The resulting improved networking between the startup and creative communities was one of the goals of the funding strategy.
Clemens Baumgärtner, Labour and Economic Affairs Officer, says:
“The first interim results of our crowdfunding program are impressive: In the first year, 20 innovative projects from a wide range of fields were already supported.
This is impressive evidence of the increasing relevance of crowdfunding in startups. Even if not all funding goals were achieved, the entrepreneurial experience is still enormously valuable."
A look back
After one year of the Munich crowdfunding program, it's worth taking a look back. How many funded projects were successful? What were the crowdfunding highlights? And how did the project starters benefit from the funding?
First of all: Many project starters discover during campaign implementation that crowdfunding is not only helpful for financing, but often also an important market test for innovative products—and, at the same time, a very good marketing tool. These aspects are particularly advantageous for young companies that have not yet been able to build a strong brand. While funding is the primary objective, and at least eight city-supported projects reached their funding target, ultimately it's always about more—and even if a project doesn't successfully complete the campaign, projects are sometimes implemented despite everything.
Two successful campaigns were, for example, Brot am Haken and Carryyygum. Carl Heinze, founder of the “smallest luggage carrier in the world,” describes the advantages of the Munich sponsorship for the campaign. Carryyygum so:
"A good campaign involves quite a lot of initial expenses—for example, for video production or a graphic design agency. The €3,000 from the city really came at the right time for us. Furthermore, the reference to the city's crowdfunding support is also a good trust element on the crowdfunding page."
In addition to the interview with Carryyygum We also had a conversation with Michael Regnet from Bread on the hook talked about his tips for other project starters. Further interviews about other funded projects and their successful crowdfunding projects will follow gradually.
An outlook
It is also worth looking into the future. The co-funding program has been added to the existing support.Munich Crowd' from Stadtsparkasse München. This complementary offering, which combines crowdfunding with traditional start-up financing through the bank, has only recently been launched. We're excited about the first pilot project.
