Dive Brief:
- PieShell, a niche crowdfunding site for food and beverage products, reports a 100% success rate for projects since the site’s launch in October, founder Cheryl Clements told the New Hope Network.
- Unlike other crowdfunding sites, PieShell operates with a stepping-stone model. Projects working with PieShell have a first goal, a “want” goal and a dream goal.
- PieShell has a 6% fee. It directs 1% to its nonprofit partner Emma’s Torch, which provides mentorship and culinary training to refugees in need.
Dive Insight:
There are dozens of different crowdfunding sites, and while Kickstarter and GoFundMe might be the most popular, many others have come along to help projects get off the ground. A recent report from the Pew Research Center shows that 22% of American adults have contributed to a crowdfunded project online at least once.
Elizabeth Gerber, a professor at Northwestern University who has studied crowdfunding, has said there are four main reasons why people donate to these sites. They want acknowledgment for helping, they want to be part of a group, they have a personal connection to the one seeking help, or they want to support efforts that align with their beliefs.
By coming up with a new niche— catering to those in the food industry— PieShell is giving foodies and those who want to help find an easy way to do so. People don’t need to know about a project going in, and they can discover startups dealing with issues they care about, like healthier or more sustainable products
Also, since companies need to have three levels of goals, they don’t need to shoot for the moon with their ask and can set incremental and more realistic goals. Although the platform officially launched just about four months ago, it seems to be working so far.