CCB Magazine

What does crowdfunding have to do with sustainability? Shai Hoffmann writes about this in our new magazine "The Big Good Future" #3. The self-proclaimed karma economist has been doing one crowdfunding campaign after another for years to bring sustainable concepts to society. Here he outlines a stocktaking - and explains why he just can't get away from crowdfunding. 
 

Text Shai Hoffmann   

Let me introduce myself. I am Shai Hoffmann, social entrepreneur, speaker, moderator and activist. I’m active in promoting social issues and set up projects in sustainability, digitalization, politics and society - and there’s one thing I use more than anything, and that’s crowdfunding. Crowdfunding is a way for me to realize my ideas. You set up a campaign and don't need to fill out annoying application forms or stand in line somewhere, you just do it. And once you've done one or two crowdfunding campaigns, you know how it goes. I now have over ten campaigns behind me. For example, I launched Karma Classics, a sustainable, fairly produced alternative to Converse Chucks that you can also make yourself. Then, two weeks before the 2017 federal election, I travelled across Germany with what I called the "Meeting Bus" so that I could get into conversation with people on the ground. Armed with just coffee and snacks, a few chairs, tables and a whole lot of courage and energy, we set ourselves up in local market squares and asked people about the things that concerned them. At the moment I am also producing Israeli-Palestinian educational videos to break down binary thinking about the Middle East conflict and help people learn to live with contradictions. Because ignorance often leads to anti-Semitic and anti-Muslim resentment - not infrequently even among teachers. For me, encouraging discourse here has something to do with a sustainable and democratic society. And you can’t separate the two. A functioning democracy begins with exchange and coexistence. There can only be a sustainable society if our goals are socially and ecologically sustainable, if people, nature and the environment are not harmed.

I am convinced that something you are passionate about is ultimately going to be the most convincing. You don't need a marketing department for that. All it takes is you, your courage, your determination and your will to change things

So crowdfunding has a lot to do with sustainability. On platforms like Startnext, it feels like every second project has a sustainable impact - and that's because the creators don't just want to sell people something; it's about finding supporters for a cause. That doesn't mean that crowdfunding is sustainable per se. For example, there was once a campaign in which a car lobbyist wanted to use crowdfunding to campaign against 30 km/h speed limits. As a rule, however, these are isolated examples; in the end, the good ideas usually prevail. There are plenty of examples. The zero-waste grocery stores, which make shopping plastic-packaging-free, achieved their growth through crowdfunding. Instead of the targeted 45,000 euros, 108,915 euros were collected in the end – and now there are many zero-waste grocery stores nationwide. The problem underlying this is clear. With 220.5 kg of packaging waste produced per capita, Germany is at the top of the league in Europe. The European average is "only" 167.3 kg. 63 percent of fruit and vegetables are sold pre-packaged, and a total of over 18 million tons of packaging waste is produced in Germany each year. Another example are the companies einhorn and Soulbottles. Both were able to use crowdfunding to build their businesses. einhorn reignited the asset-ownership debate and raised the question of how companies need to be positioned in the future so that people in the companies work well and enjoy their work. Soulbottles produce sustainable, customized bottles made of glass to prevent plastic waste - as more than 250,000 tons of plastic waste are estimated to be floating in the oceans worldwide. And consumers help decide the design during production. This means that crowdfunding isn't just bringing sustainable ideas to the world but you can also get an idea of who likes your idea and who is getting involved and contributing. And I am convinced that something you are passionate about is ultimately going to be the most convincing. You don't need a marketing department for that. All it takes is you, your courage, your determination and your will to change things.

But is crowdfunding also sustainable as a form of financing? Under certain circumstances, yes. First of all, it has to be said that only very few people can make a living from a crowdfunding campaign: The average value of a successful campaign in Germany is around 8,000 euros. That’s not enough to pay either yourself or any staff. You might even say that this is where self-exploitation begins. But I think that a change in awareness is taking place here. Many people are now making sure that their own campaign work is financed. Take me for example. I’ve been able to raise more than 100,000 euros from some of my campaigns and from that I could pay for the project as well as paying myself and the campaign staff. But crowdfunding shouldn’t be reduced to purely a form of financing. Crowdfunding gives projects a push start. It is also often used to supplement existing financing structures - for example, it can be used to finance new magazine series, individual festivals or individual film productions. And one trend gives me hope - foundations and the larger banks have now also recognized the potential of crowdfunding. They say we think it's good, we'll give you a loan without business plans and all that bureaucracy. This is where things need to move forward. Funding structures could also be adapted to this, because successful crowdfunding proves that the idea resonates. For the future, I would like to see more courage, including in the institutions. And I am firmly convinced that you can achieve a lot with good, creative ideas and a gripping story. Dare to do new things, it's like a love affair! Let's make Berlin and the world greener, more colorful and more tolerant. This will make not only the city more livable, but life as well.

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