Crowdfunding is being used as a financing model for different types of projects. It is very common to see headlines about the launching of crowdfunding campaigns to finance videogames, technological products, events, and scientific developments, among many others. Undoubtedly, those projects that seek to promote the enhancement of space evidently manage to highlight one of the most important values of this collective financing model: the consolidation and mobilization of a community that seeks to generate collective benefits.
These projects are being financed through crowdfunding in its different forms:
- Reward-based crowdfunding: Participants receive a non-monetary reward in exchange for their money.
- Donation-based crowdfunding: Participants contribute money without expecting anything in return.
- Investment crowdfunding: Model that generates economic returns. Currently the model used by Prodigy Network for the development of institutional quality real-estate projects.
In any of these cases, participants usually contribute money because they feel a connection with the community benefits the project will provide. These are some of the most relevant examples:
- Project: Lutchsingel (“air canal”, in Dutch)
- Amount raised: Participants acquired 17,000 wooden boards and segments for US$32.50 and US$162.50, respectively.
- Crowdfunding model used: Reward-based Crowdfunding. The name of each contributor was engraved on the boards he/she acquired.
- The Project: a 390-meter long pedestrian bridge that links the city center with its northern areas revitalizing them.
- The Benefit: The footbridge has become the zone’s development promoter by increasing the construction of new community spaces and the opening of businesses that have enhanced the city’s quality of life. Likewise, Lutchsingel has catapulted the development of Rotterdam and has positioned it as one of the most sustainable and innovative cities in the world with initiatives such as the development of avenues made of recycled plastic.
2. Project: BD Bacatá
- Amount raised: US$187 million
- Crowdfunding model used: Investment Crowdfunding
- The Project: A skyscraper of two towers, one of which is the tallest in Colombia, with 66 floors and a total of 114,384 m2 of construction with five different uses: apartments, offices, hotel, shopping mall, and parking areas.
- The Benefit: The revitalization of the center of Bogota; a zone of great economic and social importance to all its citizens where large-scale real estate projects have not been developed. BD Bacatá was Prodigy Network’s first real estate crowdfunding project, however, it is the only one in its portfolio whose development is not carried about by Prodigy.
3. Project: Growing Underground
- Amount raised: £850.000 (US$1,1 million)
- Crowdfunding Model Used: A combination of rewards-based (participants get a tour of the facilities) and investment crowdfunding (receiving returns based on the profit from sales).
- The Project: Ten thousand meters of tunnels were constructed in London in 1940 as bomb shelters during World War II. They have been unoccupied ever since, until two entrepreneurs realized that they constituted the perfect space for a hydroponic underground farm.
- The Benefit: The tunnels are located in a strategic area of London, close to Covent Garden Market, a favorite site of both restaurant owners and neighboring dwellers. This allows Growing Underground to offer fresh greens without having to endure lengthy transportation times while also benefitting from a formerly underutilized space.