Crowdfunding and the Creative Industries: a Case Study

5 FEBRUARY 2013

The use of crowdfunding by inventive online music start-up GigDropper is an inspiring case stady of how the online investment method can have a profound impact on start-ups in the creative industries.

GigDropper logoWhat is GigDropper?
GigDropper is a location-based music discovery service that would allow bands or performers to upload songs at specific real-world locations, which would subsequently be available to anyone using the GigDropper app on their phone at that location. A GigDrop is a song or collection of songs that would be uploaded onto the platform by an artist. These GigDrops would be tied to real-world locations. So, a Beatles cover band could GigDrop some of their tunes to the Cavern Club in Liverpool or a jazz band could release their new single at a local jazz bar. GigDropper wants to make it more enjoyable for music-lovers to discover new music that will most likely be of interest to them and wants to make it easier for bands to share their music with a new audience.

Crowdfunding: the numbers
Investment Sought: £30,000
Equity: 35%
Days to Full Investment: 82
Number of Investors: 71
Average Investment: £423
Location: Liverpool

Crowdfunding website used: Seedrs.

Why GigDropper Needed Investment?
To fund initial platform development – taking GigDropper from the concept stage through to full beta launch, as quickly as possible.

Why Seedrs?
Ross Evans, lead entrepreneurs GigDropper: “Since my application relies on the web, I thought reaching out and offering a bit of my business to fellow music lovers (who would also use GigDropper) online was a great idea.”

Next Steps…
Evans: “We’ll be working hard towards a timely launch to capitalise on all of the social media interest in GigDropper that arose from raising capital online with Seedrs. We’ve now built a community of fans who want to use Gigdropper and share it with their networks.”

Top Tip to Other Entrepreneurs
Evans: “Given the way the funding landscape is changing, giving more people the chance to invest in your venture, funding pitches should be written to appeal to a more mass audience. The marketspeak lexicon cuts little ice in the crowdfunding world. Keep it simple.”