You need to hit your target in order to receive the funds you raise. Otherwise you will not receive any.
At Spacehive we have an ‘all-or-nothing’ policy. This means that you must reach your fundraising target within the allocated time frame in order to receive any of the funds. If you don’t hit your monetary goal, your project will not receive its funding and any backers will be refunded.
Here's why it works:
- It helps you raise more money as backers know you have to hit your target. On platforms where this isn't mandated, there's no urgency and it's common to raise less than the target amount.
- It’s less risk for everyone. If you need £5,000, it’s not much good having £1,000 and crowd of people expecting you to complete a £5,000 project.
- It encourages people to back you. They know their money will only go towards the project as described on your page, not a half-funded version of it.
- It works. 85% of Spacehive campaigns are successful, which is much higher than the crowdfunding industry standard.
Once the initial funding target has been reached, projects can continue to raise additional funds to make the project even bigger and better. If the project has overfunding enabled, details of how the extra funds will be spent are explained on the project page and backers can choose whether to keep pledging towards those cost items too. Find out more about overfunding here.