With its crowdfunding program, the state capital of Munich offers a program that is unique in Germany. Due to the coronavirus crisis, the city has now adjusted the program's terms and conditions to support the city's hard-hit cultural and creative industries.
Until now, the Bavarian capital had been responsible for the preparation and implementation of a CrowdfundingThe campaign received financial support of 50 percent, up to a maximum of €3,000. This funding covered expenses for photos or videos, texts, editing, translations, graphic services such as infographics, as well as storytelling, communication, PR, and social media.
The funding amount from Referat für Arbeit und Wirtschaft (RAW) has now been adjusted. Until the end of May 2020, the grant for creative services in campaign preparation will be increased to 90 percent of the costs incurred. This means that campaign creators will require significantly less equity than before. In this way, RAW not only aims to support project starters and their ideas, but also to strengthen the order situation of the local cultural and creative industries during the coronavirus crisis. The maximum funding amount of €3,000 remains unchanged. All information about the program and the application can be found at www.muenchen.de/crowdfunding.
Steps after crowdfunding
Many crowdfunding platforms have also responded to the Corona crisis and launched their own Special formats Many of them are compatible with the city's crowdfunding program. For example, Startnext announced that it will refund 4 percent of transaction fees to projects affected by the current situation. In addition, the "all-or-nothing" principle will be suspended for these projects. This means that the collected support will be paid out even if the set goal is not reached.
Another advantage of the supported projects: Those who can demonstrate a successful campaign can combine it with a start-up loan from Stadtsparkasse München as part of the "Munich Crowd" program. With this co-funding, the founders receive comprehensive advice from Stadtsparkasse on the right Financing mixSuccessful crowdfunding serves as proof of concrete demand for the planned product or service on the market.
All information about the program and the application can be found at www.muenchen.de/crowdfunding
