Crowdfunding has only recently taken of in the Czech Republic. Why is that?
The concept of crowdfunding which has been popular in the United States for several years already, is finally catching on in the Czech Republic. Crowdfunding is a way of online fundraising through various investments and donations. There are numerous popular websites, most notably Kickstarter in the United States, which has raised thousands of dollars for various of projects. In the Czech Republic, one of the most popular of these sites is called HitHit.cz. It originated in 2012 and has become very popular because as one of the co-founders put it in an interview, “you have a very good chance to succeed.” And there are several reasons why this company so often sees success with their projects.
For one, the website has the draw of exclusivity which has worked for past sites such as Facebook as they do not accept every project proposal. In another article, one of the co-founders explained, “We are strict with the projects we choose. We choose those that people actually want to support.” And this seems to be a successful method as many projects have raised even more money than they had aimed for. Also, compared to other crowd funding websites, HitHit works intimately with the project coordinators. “The Hithit team works closely with the project authors. We have experience with PR. We help with creating videos and project descriptions in order to maximize as much as possible the chances of attracting donors.”RocioLara
As Hithit has been such a success within the Czech Republic, it is interesting to consider why a popular website such as Kickstarter may not be as successful within a similar market. This brings us back to this notion of community formed online, as that is exactly what Hithit has managed to do. Projects on this website have been able to draw in a lot of local support rather than international attention because of the close ties from the supporters. The founders have noted that most of the people who donate to projects are either related to, or at least acquainted to the people behind the project. It is this community of people attracted by the website which seems to be a major factor of the company’s success.