Crowdfunding and Perdième

1.02 billion euros. This is the total funds collected by crowdfunding platforms in France in 2020 ¹ . This represents 115,616 projects financed through this means. A record which underlines the importance of this modern financing solution in the current landscape of business creation and the development of new activities . Perdième is part of this movement. One year after its first crowdfunding campaign in fall 2020, the brand is repeating the experience this October 2021. In the interest of transparency , it seems interesting to us to provide information about this practice. What is crowdfunding ? How does it work ? Why can it represent a tremendous growth lever for businesses? What are the objectives of this second campaign launched on Ulule for Perdième? Answers in this article.

What is crowdfunding?

“Crowdfunding” or “participatory financing”

“Crowdfunding” refers to a way of financing a project, that is to say a means of collecting money with the aim of making this project a reality. It is commonly translated as “crowdfunding” in France or “sociofinancing” in Canada. This method of financing is based on the financial participation – generally small amounts – of a large number of individuals – mainly individuals – wishing to support the same initiative. Fundraising is done online from Internet users via a digital platform. The supported project can be of any type: entrepreneurial, associative, cultural, artistic, environmental, etc.

Crowdfunding: collecting small amounts from a large number of contributors

An ancient practice, modernized and conceptualized at the beginning of the years 2000

Born from the contraction of the English words crowd , “crowd”, and funding , “financing”, the term “crowdfunding” literally means “financing by the crowd”. This neologism is attributed to the American Michael Sullivan who used it for the first time in 2006 on his blog Fundavlog ² . Although the concept was officially and widely recognized under this name over the following decade, the practice was not new.

Examples of calls for crowdfunding are numerous in History. One of the most notable: the construction of the Statue of Liberty. The project was completed in 1886 thanks to impressive fundraising. In France, various promotional actions carried out between 1875 and 1880 – subscription campaign, lottery, sale of miniature statues, etc. – make it possible to collect several hundred thousand francs from French municipalities and citizens ³ . On the American side, more than 120,000 New Yorkers respond to the call for donations launched by Joseph Pulitzer to the readers of his newspaper New York World in 1885. 100,000 dollars are collected and invested in the construction of the base of the statue ³ .

The principle is always the same: to appeal to the generosity of as many people as possible. However, crowdfunding took on a new dimension in the early 2000s. Several combined factors explain this change:

• the effects of the 2008 financial crisis, namely the scarcity of credit, a global distrust of traditional banking institutions, and therefore the search for alternatives to traditional financing tools;
• the computer revolution and the rise of the Internet;
• the development of social networks and communities.

Crowdfunding, how does it work?

The different forms of crowdfunding

There are several variants of crowdfunding, to choose from depending on the type of project and the profile of potential contributors.

• The unrequited donation : the contributor, interested in the project, offers a sum of money without expecting anything in return; This is what we call the “coup de coeur” donation.

• Donation with symbolic consideration : in exchange for their financial contribution, the subscriber benefits from a non-financial consideration called a reward, defined according to the amount of the donation; for example, an object bearing the image of the brand.

• Pre-sales or pre-orders : the contributor pre-purchases the product or service which is the subject of the campaign, generally at a preferential rate, which he will receive once the campaign is closed, only if the objective is reached.

• The loan : the investor lends a sum of money to the project leader, which must be repaid within a specified time, either without interest (unpaid loan) or with interest (paid loan).

• Investment : the financier invests in the project in return for remuneration in the form of acquisition of shares in the company (capital investment), interest (investment in bonds) or commissions on turnover (investment against royalties).

How crowdfunding platforms work

Crowdfunding platforms are websites that connect the person behind the project, called the project leader, and the general public. There are all kinds of them today. The best known are called “generalist” since they accept all types of projects: Ulule, KissKissBankBank, Kickstarter or even Indiegogo. Others specialize in a specific area, such as ProArti for cultural programs, GoFundMe for solidarity initiatives or Homunity for real estate projects.

The process is simple.

• The project leader must register on the platform of their choice and create a page to describe said project and quantify their needs. In general, several amounts are defined in stages, corresponding to increasingly important objectives.
• Internet users can then consult the collection pages of the different projects hosted by the platform and choose the one or those they wish to finance; they pay the platform the sum of money indicated for the chosen level.
• The platform retains the funds paid by contributors until the end date of the campaign.
• The project is launched if the first level is reached.

The majority of crowdfunding platforms are remunerated by charging a commission on the funds collected of around 5 to 8%. These fees are actually deducted from the total amount paid to the project leader at the end of the campaign, if the latter is a success. Otherwise, when no objective is reached, the funds are returned to each contributor.

Why use crowdfunding? The advantages of crowdfunding

Beyond the direct financial contribution it represents, crowdfunding has other significant advantages, both for the project leader and for the financier. It allows to :

• raise funds quickly and without incurring significant costs;
• diversify the sources of financial support and free ourselves partially or entirely from traditional intermediaries such as banks;
• communicate with potential users of the product or service offered and answer any questions they may have;
• establish a relationship of proximity and trust with contributors, build a community and benefit from its support to promote the project more widely;
• thank participants by showing creativity;
• test the viability of the project, by measuring the public's enthusiasm for it;
• improve the project thanks to feedback, comments and advice provided free of charge by the target audience;
• bring to fruition innovative and unconventional projects, in the face of which traditional investors sometimes show reluctance;
• obtain other funding thanks to the success of the campaign;
• encourage and promote citizen engagement, put at the service of projects that have meaning for society.

Crowdfunding, an essential financing solution for Perdième

A successful launch thanks to the first crowdfunding campaign in 2020

Perdième led its first crowdfunding campaign on the Ulule platform in October-November 2020. In total: 775 contributors and 1809 presales! A real success which allowed the brand to:

• start production of its launch collection, consisting of menstrual panties, classic panties and a matching bra, all available in 4 exclusive colorful patterns ;
• open its online store, www.perdieme.com , in February 2021;
• offer for sale in June 2021 a 5th motif, the “Nairobi”, designed by the designer Janine Lecour .

Since then, there have been more than 3,000 panties that have found their way to the comfortable, aesthetic and responsible wardrobe of 1,500 customers. The brand has also developed partnerships with eco-responsible physical stores in France and Switzerland.

From October 14 to November 15, 2021 : a second crowdfunding campaign to support the development of the brand

Perdième is launching its second crowdfunding campaign , supported by Who's Next , the leading international women's fashion show in Europe, and Square, specialist in payment solutions.

• the development of the range of underwear offered, with a new shape, the abundant flow shorty, and a new pattern entitled “Taipei”;
• extending the range of sizes, for greater inclusiveness;
• a new sponsorship offer with surprise goodies for godmothers and goddaughters.

Crowdfunding is a real modern financing tool that can make all the difference for a young brand. Don’t hesitate to give us a little help by participating in the Perdième 2021 crowdfunding campaign !

Written by cd

Sources:

1. FPF Crowdfunding France. Crowdfunding exceeds one billion in 2020 . (2021, February 10). financeparticipative.org.
2. Word Spy.Crowdfunding . (2008, July 1). Wordspy.com.
3. Daubrée, A. (2021, May 31). Statue of Liberty: the crazy Franco-American story . Geo.fr.