Yeon Jin-guk, an intern researcher at the Funding Institute. Filled with determination and passion, Yeon Jin-guk has finally been assigned his first task.
“Hey, intern researcher, would you like to write a funding research log?”
Yeon Jin-guk, who got scolded on his first day of work for confusing "cloud" with "crowd" (
How on earth did you end up becoming a research intern?Will he actually be able to carry out the mission successfully?Here begins Yeon Jin-guk’s Funding Exploration Journal.
※ Please note that the funding-related terms and information in this post are based on Wadiz funding policies.
I'm in big trouble. I managed to land an internship at the world's top funding research institute by putting my public speaking skills to good use, but the truth is, I'm a complete novice when it comes to fundraising.
““Hey, intern researcher, would you like to write a funding research log?””
For a brief moment, I froze at that single sentence—which sounded like a suggestion yet felt like a command—but then I typed “crowdfunding” into the search bar.
Crowdfunding: A term combining "crowd" (meaning the general public) and "funding" (meaning financing), referring to a method by which individuals or organizations in need of funds raise capital from the general public through online platforms. It is categorized into four types: reward-based, donation-based, lending-based, and equity-based.
Source: Encyclopedia of Current Affairs
The first thing I said when I saw the verdict was, “Huh…?”
“If you look at it that way… isn’t crowdfunding just commerce (sales) dressed up in fancy words?”
However, the crowdfunding I know isn’t like that. Although I’m a novice when it comes to crowdfunding, I’m confident in this because I’ve had positive experiences with it. Crowdfunding isn’t just a simple exchange of money for a product (or service); it’s an act that creates value beyond that. Only now have I realized the true meaning behind the mission my senior gave me to keep a crowdfunding journal. My passion is burning bright.
What is crowdfunding?
The type of crowdfunding we are most familiar with is reward-based crowdfunding.
When a group of people pool their money and the target amount is reached, the funds are transferred to the person who launched the “Help Me!” crowdfunding project (the creator). The creator then carries out the “challenge” they had previously announced to the public, and subsequently provides the promised “rewards”—such as products or services—to the backers. This is the basic definition.
But to truly appreciate the appeal of crowdfunding, you need to look at its culture rather than just its definition!
The Three Musketeers of the Funding World
The crowdfunding world consists of three groups: creators, backers, and platforms.
If even one of these elements is missing, this world cannot exist. A "maker" refers to someone who needs funding or is taking on a challenge. On the platform, they launch and carry out projects and offer rewards.
A backer is someone who provides funding to a creator and offers encouragement and support. They participate in (fund) projects that offer products designed to improve daily life or embody values and philosophies they resonate with, and in return, they receive rewards.
The platform acts as a facilitator, establishing and maintaining rules and a culture that enable creators and backers to communicate transparently and ensure the smooth progress of funding campaigns.
Makers, supporters, and platforms. These three are the key players in building a world where anyone can take on a challenge.
Wadiz, a platform connecting supporters and creators
The First Rule of Funding: Something New
Only products and services being unveiled for the first time can be featured on crowdfunding platforms. In other words, only new products with no prior distribution history—or existing products that have been upgraded with better features and benefits—are eligible for crowdfunding.
This is the “law of new challenges” in the world of funding.
For pre-order projects, broader rules (such as the "special challenge rule") are applied to support a variety of challenges! I'll have to look into this further later.
The Second Rule of Funding: The Art of Waiting
To launch a crowdfunding project, you need to set a funding goal and a campaign duration. In the crowdfunding world, most creators are small and vulnerable. If they can’t immediately produce a finished product, or if they produce it but can’t sell it all, the potential losses are likely to be significant. That’s why they set a target amount—saying, “With just this much funding, we can make it!”—and a deadline (end date) that determines the project’s success or failure.
▲ Did you know that you can find the funding goal and duration at the top of the project story?
As a result, backers may find themselves in the unusual situation where, even if they click "Back" today because they like the project, no money is actually withdrawn from their bank account. In other words, payment and shipping do not happen immediately. If you approach this with an e-commerce mindset and get frustrated, asking, "Why isn't the payment going through? When on earth are you going to ship this?"—that would be very problematic.
Funding is different from e-commerce.
Even if you back a project one drunken night, forgetting all about your financial situation and exclaiming, “This product was made just for me!” you might end up canceling your backer status in tears the next day after checking your bank balance, promising yourself you’ll try again later.
▲ To cancel a payment reservation, go to [Wadiz] – [My Campaigns] – [Campaign History] and select the project!
Until the end of the funding period, creators can make one final pitch to supporters through the project’s “News” board or the “Community” comments section. Supporters can take their time to carefully consider and review the project before committing to the funding.
That is why crowdfunding is not simply about buying or selling a product or service, but about experiencing the process of acquiring it.
The Third Rule of Funding: Refunds are not possible, but returns are fully possible!
Funding is an experience in itself, and since there is ample time before it concludes, 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 launch date—the true beginning of the challenge. The project is a success! But the next day, after falling asleep with a sense of joy, what if supporters suddenly start canceling their payments or returning their orders en masse for no apparent reason? Not only would this be heartbreaking, but it could also spell disaster for the business. (Here’s a little TMI from me, Yeon Jin-guk! When I was a kid, the thing I hated most was having something taken away for no reason.)
But from the supporter’s perspective, how frustrating would it be to receive a reward they’ve eagerly awaited only to find it damaged or not working properly? That’s why the Guardian Platform, which safeguards the crowdfunding world, has established a “fund refund” policy.
Backers may request a refund within 14 days of receiving their reward if it is defective or if it is not delivered by the promised date. However, please note that the return of funding amounts is a different concept from the refunds mandated by law. (When in Rome, do as the Romans do!)
Of course, the platform will play a key role in mediating disputes to ensure that neither creators nor backers face any unfair situations.
Like the First Rule, this rule applies only in the world of crowdfunding. In the world of pre-orders, the refund policy applies to ensure a convenient and trustworthy connection between backers and creators.
After reading the definition of “funding” in the Encyclopedia of Current Affairs, I thought, “That can’t be all there is to it!” My passion was ignited, so I wrote down my own detailed take on what funding really means. Wow, I think I’ve graduated from being a funding novice and have grown into an intermediate level by now.
On my first day at work,
“Hello, I’m Yeon Jin-guk, an intern researcher! I’ll be researching cloud funding from now on…”
“Cloud?”
“Huh…? Cl…oud? Cloud?!”
That’s how I used to be. I was really worried, but for some reason, I feel like I can do this.
That wraps up Day 1 of my funding exploration!
On Day 2, I plan to explore the significance of funding projects.
View other logs 👀
Episode 2: “Funding: One Name, Three or Four Meanings”
Episode 3: “One Heartfelt Story Is Worth More Than Ten Features”
Episode 4: “We Are Gen Z, the Generation Launching Fundraising Campaigns”
Episode 5: “Is There Such a Thing as This Kind of Crowdfunding? People Deeply Dedicated to a Single Cause”
Episode 6: “Is There Such a Crowdfunding Campaign? Everyone’s Own Way of Thinking About the Environment”
Episode 7: “Let’s Go on a Special Trip Through Crowdfunding”
Episode 8: “Workation: I’m Going on One Through Crowdfunding!”
Episode 9: “Trendy Restaurants from Social Media, Now on Crowdfunding!”
Episode 10: “Showcasing Delicacies from Across the Country Through Crowdfunding!”
Episode 11: “Crowdfunding: A Dash of Excitement for Your Best Life”
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