Funding Lab intern researcher Yeon Jin-guk. Packed full of determination and passion, Yeon Jin-guk has finally been assigned his first task.
"Intern researcher, would you like to try writing a funding exploration log?"
On my first day at work, I got scolded for confusing "cloud" with "crowd."
How on earth did you become an intern researcher?Can they really handle the mission well?Beginning Yeonjingu's Funding Exploration Journal.
※ Please note that all funding-related terms and information in this post are based on Wadiz funding policies.
Oh no. I somehow managed to become an intern researcher at the world's top funding research institute by fully utilizing my ability to win speech contests, but the truth is, I'm the king of funding.
“Intern researcher, would you like to try writing a funding exploration log?"
That dizzying line, part suggestion, part command, froze me in my tracks—but only for a moment. I typed "crowdfunding" into the search bar.
Crowdfunding: A term combining "crowd" (meaning the public) and "funding" (meaning capital), referring to a method where those needing funds raise capital from an unspecified large number of people via online platforms. It is divided into four types: reward-based, donation-based, loan-based, and equity-based.
Source: Encyclopedia of Current Affairs
The first thing I blurted out when I saw the justice was, "Huh...?"
If you look at it that way... isn't crowdfunding just commerce (selling) dressed up nicely with fancy words?
But the crowdfunding I know isn't like that. Though I'm a crowdfunding novice, I'm certain because I've had positive experiences. Crowdfunding isn't just a simple exchange of money for products (or services); it's an act that creates value beyond that. Only now do I understand the true meaning behind my senior's mission to give me this crowdfunding exploration journal. My passion is ignited.
What's funding?
The type of funding we commonly know is reward-based funding.
When unspecified individuals pool their money and the targeted funds are raised, it is delivered to the person who launched the "Help me!" funding project (the maker). Subsequently, the person who secured the funds carries out the 'challenge' they had previously announced to the public, and then returns the promised 'rewards'—such as products or services—to the funders. That is the conceptual definition.
But to truly appreciate the appeal of crowdfunding, you need to look at its culture rather than its definition!
The Three Musketeers of the Funding World
The funding world consists of three groups: makers, supporters, and platforms.
If even one of these is missing, this world cannot exist. Makers refer to those who need funding and those who take on challenges. On the platform, they open and run projects while providing rewards.
Supporters are people who provide funding to makers, and who cheer them on and show their support. They participate (fund) in projects that offer products designed to improve daily life, or products embodying values or philosophies they resonate with, and receive rewards in return.
The platform is a facilitator that establishes and maintains rules and a culture enabling makers and supporters to communicate transparently and ensuring funding proceeds smoothly.
Makers, supporters, platforms. The three musketeers creating a world where anyone can take on a challenge.
Wadiz: The platform connecting supporters and makers
Funding Rule #1: Novelty
Only products and services being unveiled for the first time can gain a chance to appear in the funding arena. In other words, only something entirely new with no distribution history, or something with an existing history that has been upgraded with better features and benefits, can proceed with funding.
This is the "new law of challenge" in the world of funding.
For pre-order projects, broader rules (like the special challenge rule) apply to support diverse challenges! I'll need to study this further later.
The Second Law of Funding: The Art of Waiting
To run a crowdfunding project, you need to set a target amount and duration. In the funding world, most makers are small and precious. If it's difficult to create something in its finished form right now, or if production leads to unsold inventory, the potential damage is high. That's why we set a target amount—say, "With just this much funding, we can make it happen!"—and a deadline (end date) that determines the project's success or failure.
▲ Did you know the target amount and funding period can be found at the top of the project story?
Because of this, supporters will have the unusual experience of clicking the "Fund" button today for a project they like, yet seeing no money leave their account. In other words, payment and shipping won't happen immediately. If you're thinking about commerce and get angry, wondering "Why isn't the payment going through? When the heck are they shipping this thing!", that would be very problematic.
Funding is different from commerce.
Even if you crowdfund something in a drunken stupor, forgetting your financial state and declaring, "This product was made for me!", you might wake up the next day, see your bank balance, and tearfully cancel the funding, vowing to try again someday.
▲ To cancel a payment reservation, go to [Wadiz] → [My Fundings] → [Funding History] for your project!
Makers can make their final appeal to supporters through the project's 'News' board or the 'Community' comment feature until the funding period ends. Supporters can take their time to carefully consider and review before finalizing their funding decision.
Therefore, funding is not merely buying or selling a product or service, but experiencing the entire process of obtaining it.
Funding's Third Law: Refunds are impossible, returns are entirely possible!
Funding is an experience in itself, and since there is sufficient time before its conclusion, refunds based solely on a change of heart after payment are not possible.
Let's think about this. Imagine Maker A, who has been eagerly counting down the days to the deadline—the true beginning of the challenge. Project success! The next day, after falling asleep with a happy heart, suddenly, for no apparent reason, supporters cancel their payments en masse or request refunds. This could lead not only to heartbreak but also to a crisis for the business. (A little TMI from Yeon Jin-guk! The thing I hated most as a child was when something was given to me for no reason and then taken away.)
But from the supporter's perspective, how frustrating would it be to receive a reward they've waited so long for, only to find it damaged or non-functional? That's why The guardian platform protecting the funding world has established a "funding refund" policy.
Supporters may request a refund within 14 days of receiving their reward if it is defective or if the reward is not delivered by the promised date. However, note that refunding funding amounts is a different concept from legally mandated refunds. (When in Rome, do as the Romans do!)
Of course, the platform will play its role as a mediator to ensure that neither the maker nor the supporter finds themselves in an unfair situation.
This rule, like the first rule, applies only in the world of funding. In the world of pre-orders, the refundable rule applies to ensure a convenient and reliable connection between supporters and makers.
After reading the definition of crowdfunding in the encyclopedia, I thought, "This can't be all there is!" Fired up with passion, I wrote down what crowdfunding truly means in my own words. Wow, at this point, I feel like I've graduated from being a crowdfunding beginner and grown into an intermediate level.
First day at work,
"Hello, I'm intern researcher Yeon Jinkuk! I'll be researching crowdfunding going forward."
"Cloud?"
"Huh...? Cra...wood? Cloud?!"
I used to be like that. I was so worried, but somehow I feel like I can do this.
Day 1 of my crowdfunding exploration ends here!
On Day 2, I'll explore the meanings behind crowdfunding projects.
Go to other logs 👀
Episode 2: "Funding: One Name, Several Meanings"
Episode 3: "One Story Filled with Sincerity: No Need to Envy Ten Features"
Episode 4: "We Are Generation Z, Opening the Funding Door."
Episode 5: "Funding Like This? People Deeply Dedicated to One Thing"
Episode 6: "Did You Know This Kind of Funding Exists? Everyone's Unique Approach to Caring for the Environment"
Episode 7: "Let's Go on a Special Trip with Funding!"
Episode 8: "Workation? We'll go with funding!"
Episode 9: "SNS Hotspot Restaurants Appear on Funding!"
Episode 10: "Showcasing Delicious Foods from Across the Nation Through Funding!"
Episode 11: "Crowdfunding: Adding a Special Touch to Your God-tier Life"
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