Could a Kickstarter type program will work in Pakistan???

[RedHulk]

Kickstarter is an American public-benefit corporation based in Brooklyn, New York which has built a global crowdfunding platform focused on creativity. The company’s stated mission is to help bring creative projects to life. Kickstarter has reportedly received more than $1.9 billion in pledges from 9.4 million backers to fund 257,000 creative projects, such as films, music, stage shows, comics, journalism, video games, technology and food-related projects.

Could a Kickstarter type program will work in Pakistan???
A biggest hurdle for entrepreneurs is financing their projects. In Pakistan getting loan from banks is out of question. That is the reason Pakistan's economy is not growing the way it should have. Banks only invest in tangible assets from which they can recover their investment in worse case scenario. Now that leaves the youth of Pakistan with lots of creative ideas but no financing, which create frustration in them. So they opt to go abroad to peruse their dreams. Not every one is that rich to fly abroad to fulfill their dream. Now coming to the point of starting a project that would help thousands of Pakistanis to fulfill their dreams and become successful entrepreneurs.

How the program will work??
Kickstarter work through crowd funding, where individual pledge an amount according to their pocket and in return they get the sample of the product. But in Pakistan, investor who will invest want money in return as a profit or share in the project (e.g Seed funding or Angle investment). So not many people are able to get those funding cause angel investors are very selective about the investment.

There solution will be based on profit/share in the project cause pakistanis don't care about fancy gadgets or first preview tickets for their investment. So lets start a website where people would put their proposal for a project and if investor show interest they can invest in it but there should be limitation on how many people can invest in the project. This way there will be a partnership in between project owner and investors. They will make sure their investment don't get wasted. So website will give a platform to entrepreneurs and investors.
I have a bigger version of this idea but i don't want you guys to get bored. So the purpose of this post is to get your feedback and i want to find, if people with similar interest can collaborate with me so i can start this project.
Feel free to share your ideas

 

[AZADPAKISTAN2009]

Pakistan is a different landscape vs USA , and New York

• People have less money to put into brand new unproven projects
  
• Return on investment is a bit low
• investment in common culture = Dal main kuch kala hai

Normally when funds are available they are mysteriously , are used by a company setup for 4 months and then it is closed down and the person moves to UAE or Overseas


Too many people have been burned by schemes , by "so called" investors who promise 10-20% return if you invest 10,000 USD or 40,000 USD , and then the grand schemer leaves the country

This is the most abusive form of fraud

Investing is not fraud but when done with Investment firm , that as legal existance, they are accountable to law

Micro financing is a ideal platform , go to Banks get a Loan for your business it is common strategy used and managed globally

Setting up a proper company (Corporation) , and then approaching a bank is ideal platform. And you might have to use your home as collateral

Such schemes work in Developed countries as there is stronger process to track financial transactions and more control on such schemes

Banks have a solid platform against Fraud , and they understand local norms so they take a calculated risk , the average person on road won't put aside a rupee let alone 10,000 USD or 40,000 USD for investment

• Such projects only could work if it was some Investor's private money if they were Billionare and they had people / resources to sort out real deserving people

 

[RedHulk]

Pakistan is a different landscape vs USA , and New York

• People have less money to put into brand new unproven projects
  
• Return on investment is a bit low
• investment in common culture = Dal main kuch kala hai

Normally when funds are available they are mysteriously , are used by a company setup for 4 months and then it is closed down and the person moves to UAE or Overseas


Too many people have been burned by schemes , by "so called" investors who promise 10-20% return if you invest 10,000 USD or 40,000 USD , and then the grand schemer leaves the country

This is the most abusive form of fraud

Investing is not fraud but when done with Investment firm , that as legal existance, they are accountable to law

Micro financing is a ideal platform , go to Banks get a Loan for your business it is common strategy used and managed globally

Setting up a proper company (Corporation) , and then approaching a bank is ideal platform. And you might have to use your home as collateral

Such schemes work in Developed countries as there is stronger process to track financial transactions and more control on such schemes

Banks have a solid platform against Fraud , and they understand local norms so they take a calculated risk , the average person on road won't put aside a rupee let alone 10,000 USD or 40,000 USD for investment

I agree with you people do fraud, that is why i explained to put a limit for investors so they can easily monitor their investment. The process would be similar to what the seed funding companies do. Before investment they create a company for the project so they could be involved in the process. Similar thing can be applied for creator and investors so they can be involved in the process on daily basis. Other solution could be Every thing will be owned by the kickstarter type company which will over view the whole process and distribute funds accordingly.

 

[Flash_Ninja]

I think it could work if it is implemented as a strict district/city only program, Pakistanis would be reluctant to send money to some guy on the other side of the country, but investing in Mahmood from down the street would be a lot safer.

 

[sparten]

Well, Punjab has Plan9
http://plan9.pitb.gov.pk

 

[RedHulk]

Well, Punjab has Plan9
http://plan9.pitb.gov.pk

plan9 more of a tech based. look at the number of projects being funded. Do you think for a huge population of 200m 118 projects are enough? none of projects funded by plan9 have a working website. The idea i am talking about people investing in each other projects instead stashing their wealth in banks and taking Haram interest on it. Its like investing in your local area projects which you can easily supervise.

 

[VCheng]

So lets start a website where people would put their proposal for a project and if investor show interest they can invest in it but there should be limitation on how many people can invest in the project. This way there will be a partnership in between project owner and investors.

Sure, go ahead and make the website (free these days) and see how much interest your idea attracts. That will be the correct answer, whatever it might be.