Crowdfunding has turned out to be an especially effective strategy for raising funds for startups that might otherwise not have access to capital through traditional channels such as banks, venture capital and angel investors. Last year, Crowdfunding sites funded more than $2.7 billion in projects. Due in part to cuts in the federal grant dollars, major research universities are now getting into the funding game by launching their own crowdfunding initiatives.
Georgia Tech is the latest university to jump on board. In early September, the Georgia Tech Starter crowdfunding website made its debut. The site and initiative are independent of the university, giving it more flexibility than what otherwise would be possible.
Projects must be submitted by a faculty member and then are reviewed and vetted by a department chair. Recipients of funds must pay a 35% fee to Georgia Tech in exchange for running the review process, site administration, and lab facility upkeep. While this fee is higher than what other crowdfunding sites charge, it is in line with what universities typically charge to manage grants.
There are currently six projects seeking funding. For more information, visit the Georgia Tech Starter website by clicking HERE.
