Crowdfunding: A Growing Opportunity for Social Enterprises
Crowdfunding is a powerful tool that allows social enterprises to raise funds through small contributions from a large number of people, often online. It's a great way for organizations to connect with supporters and fund projects that create social impact. Around the world, social businesses are tapping into this potential, but in the Baltic region, crowdfunding is still in its early stages. The number of campaigns remains low, pointing to significant challenges for these businesses, and highlighting a need for more support, resources, and information to use crowdfunding effectively.
The Crowdfunding Pilot Programme
To better understand the challenges preventing Baltic social enterprises from embracing crowdfunding, Katalista Ventures, with the Baltic Innovation Agency, Reach for Change and Social Enterprise Estonia, launched the Crowdfunding Pilot Programme as part of the "Integrated Baltic Ecosystem for Social Innovation" (IBESI) project (funded by the European Union). The programme aimed to both identify these barriers and provide practical support to help social enterprises from Estonia, Latvia, and Lithuania successfully launch their own crowdfunding campaigns.
Throughout the Crowdfunding programme, we gathered valuable insights and resources for Baltic social businesses. We created a list of local and international crowdfunding platforms that fit the region’s needs and shared success stories from social enterprises that have already run campaigns. The programme included two main parts: webinars on crowdfunding basics and one-on-one consultations with experts for those ready to launch their campaigns.
You can find the intro webinar material HERE.
Key Results the Programme
Over 30 social enterprises expressed initial interest in crowdfunding, with 8 of them receiving personalized consultations to launch their crowdfunding campaigns. The drop-off points to an important lesson: crowdfunding is an exciting opportunity, but it requires a lot of time and effort. It's not the right fit for every social enterprise.
That said, we’re proud of the two participants who successfully launched their campaigns: SIA Mental Health & Gamification from Latvia and VšĮ Centras “EIK” from Lithuania. These campaigns are a great example of how crowdfunding can help social businesses make a real impact and connect with their communities. Check them out!
What We Learned & How to Improve Future Initiatives
The programme showed that crowdfunding has a lot of potential for Baltic social businesses, but many still lack the foundational skills needed to run successful campaigns, like marketing, business strategies, and clear goals. This proves that social enterprises need more support to effectively use crowdfunding. Feedback from participants showed that they gained a better understanding of crowdfunding and would recommend the programme to others.
Here are some lessons we learned that can make future initiatives even better:
Combine Crowdfunding with Broader Support: Crowdfunding works best when it’s part of a larger development program. By helping businesses build better models, improve communication, and strengthen their overall strategy, crowdfunding becomes just one tool in a bigger toolkit for success.
Focus on Ready-to-Go Organizations: Tailor support for businesses that already have a clear strategy and are genuinely interested in crowdfunding. These organizations will benefit the most from expert advice, and even those who didn’t launch campaigns gained valuable insights.
Personalized Expert Consultations: One-on-one sessions were one of the programme’s biggest strengths. Tailored advice on campaign strategies, platform selection, and business model improvement helped participants feel more confident about their next steps.
Set Realistic Expectations & Showcase Success: It's key to set clear expectations about the time and effort required for crowdfunding. Showing simple, successful campaigns early on can inspire participants and help them stay motivated.
Allow More Time & Focus on Motivated Participants: Given that social businesses are often small and juggling many tasks, offering a longer timeline (up to a year and a half) would give them the space they need to develop and launch a successful campaign.
Looking Ahead: Inspiring Campaigns to Explore
In conclusion, the programme proved that crowdfunding can be a powerful tool for social businesses in the Baltic, but many still need help building their foundations. The lessons learned will help shape better support for future crowdfunding efforts and overall organizational growth.
Feeling inspired or just curious? Take a look at successful campaigns on Aukok.lt or Hooandja and get familiar with what’s possible!
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The Crowdfunding Pilot Programme was carried out as part of the "Integrated Baltic Ecosystem for Social Innovation" (IBESI) project. Funded by the European Union. Views and opinions expressed are, however, those of the authors only and do not necessarily reflect those of the European Union or the European Innovation Council and SMEs Executive Agency (EISMEA). Neither the European Union nor the granting authority can be held responsible for them.
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