With emphasis on video and social media calls-to-action, Kliptap wants to create many examples like the Ice Bucket Challenge, which went on to raise US$100 million for ALS
Hong Kong- and Shanghai-based Kliptap is a new crowdfunding platform for social causes that recently graduated from Chinaccelerator’s batch VI (November, 2014), where it received US$30,000 in funding for six per cent of its business.
The platform believes that ‘video is probably the most important way to evoke emotions in the people you’re trying to reach’, and wants campaigns to be social-media driven. Those starting challenges can tag friends to take part for US$10 or US$50 to opt out (suggested, not fixed, prices).
Put up or pay up
“We were thinking about more ways to engage the next generation to give more smartly and from an early age to make the most impact. That’s when we started thinking about how we can use technology in this space, where traditionally most of the fundraising has happened offline,” Connie Leong, Co-founder and CEO, Kliptap told e27.
Prior to Kliptap, New York-born Yale graduate Leong and Hong Kong-born Co-founder Jasmine Lau, had founded Philanthropy in Motion, described as a ‘a social enterprise that empowers young people with the funds, training, and networks to become intelligent givers and support China-based NGOs’.
“Most of the [traditional] funding [for causes] happens offline, and they spend anywhere between 20-50 per cent of all the funds that are raised on admin costs. That’s a major area that most donors would question. We wanted to create a platform… to provide a means for non-profits and social enterprises to fundraise at much lower costs,” she added.
Kliptap takes a five per cent cut on all transactions that happens on its platform — a standard revenue model for crowdfunding that the likes of Kickstarter (five per cent) and Indiegogo (nine per cent) also use.
One campaign that recently ended on the platform is Chinaccelerator-led Movember Showdown, which raised US$3,710 of a US$2,000 goal from 75 backers for the Movember Foundation for prostate and testicular cancer: ‘Once you are tapped, you have 72 hours to shotgun a drink (can be anything from beer to juice) and tap three other friends’.
There are other crowdfunding-for-causes platforms around. In the Unites States, for example, actor Edward Norton co-founded CrowdRise with Jeffro Wolfe and Robert Wolfe in 2010 to ‘raise money for your cause’. Kliptap, meanwhile, wants to differentiate itself with an emphasis on video and social media calls-to-action.
Leong cites a recent example like the Ice Bucket Challenge, which went on to raise US$100 million for ALS after going viral online, as a powerful social-led force.
“We’re trying to employ a similar mechanism through Kliptap by designing a platform that is optimised to not only ask for funds and donations, but also to call upon friends to take the campaign to their own networks,” she said.
Another ongoing campaign on Kliptap is Ember Girls Scholarship, which ‘provides scholarships to talented girls from rural Guangdong’. So far it has raised US$3,640 of a US$12,000 goal, with 13 days left.
Hong Kong celebrities Jonathan Wong and Alfred Hui have also become involved with the platform, helping to further raise awareness both locally and internationally.
Raising funds to help causes raise funds
Outside the US$30,000 from Chinaccelerator, Kliptap has so far not secured any additional funding, though it will be looking for more this year. Before that, however, it wants to build out the product and prove a certain degree of traction for eventual investors.
“In the next quarter, we want to raise three successful campaigns each over the US$10,000 mark… We want this to be a global platform for anyone raising money for causes, but right now our primary market is Hong Kong and Southeast Asia,” Leong concluded.
This post was originally published on e27