Thoughts on crowdfunding in Brazilian Academia

December 7, 2013

In Brazil, if you are a researcher associated to a public university group and have a great idea for a project, you basically have two options to fund it. The first one involves matching the requirements from government funding agencies. Each State government has its own (like FAPESP in São Paulo), and the federal government (CNPQ, FINEP and CAPES) have money to invest in research projects (if you are interest in budget of each agency, check out this 2011 study). The second option, on a smaller scale, is the private sector where companies, based his economic interested and government incentives (tax cut), invests in.

Note that if you are an academic researcher doing basic research and asking for “your freedom or willingness to do what you want, to find new barriers… and so many things, from this particular and personal way, that eventually go to market and revolutionize our way of life…“ the first option cited is still the best option. But if your research involves developing a technology with customer maybe crowdfunding can be the third path for funding.

The word crowdfunding became popular in recent years leveraged by services that allows individuals publish their project idea and ask for funding. Forbes magazine prepared a list with 10 fundraising platforms. I’d like to highlight Indiegogo because it doesn’t restrict your location, you can start your campaign and collect money from any country in the world as long as you have a valid bank account.

Crowdfunding involves risks, it isn’t an investment to take a stake in idea but an investment in the sense of “see the idea become reality”.

Basically there are two funding options and there is costs associated to platform. Each project is free to define “investment quotas” which may vary from one to thousand of dollars. Of course each quota involves an incentive: you can donor US$10 and have your name published in “Thank You” project page and US$500 to give early access in the prototype manufactured. Another risk associated is the project failure after it get fully funded. Every interested in applying for fundraising must keep in mind that there are many factors that involve an successful campaign, such as: broad public appeal and excellent marketing strategies.

This crowdfunding momentum can leverage Brazilian research and reduce the gap between the society and Academia. Also can work as feedback mechanism for scientists to target interests and the society benefits from transparency and accountability.

Quoting Janne Garbarino: “Crowdfunding is shaping a new economy, there is no reason scientists shouldn’t jump on that bandwagon whenever appropriate”

If you got interest I suggest you read this: