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FAQ

All information in these FAQs are superseded by and governed through our Terms and Conditions.

Introduction

What is crowdfunding?

Crowdfunding is a method of raising money for a project, where the project’s creator goes out to a large group of people, ‘the crowd’, and asks for a number small donations to help fund the project. In return for their donation, ‘project backers’, usually receive a reward as part of the project.

What is Sproutback?

Sproutback is an Australian based crowdfunding platform. Sproutback is a crowdfunding platform designed to help you fund your next creative project. We’ll offer guidance and advice to those who want it or leave you to nut it out yourself - it’s up to you! Anyone can start a project as long as it’s within our rules. We’re here to help artists, musicians, designers, innovators and others to find the funding they need to take their project to the next stage.

How does it work?

Project creators post the information about their project on Sproutback and set a funding goal as well as a timeframe within which they need to reach their target. Projects offer rewards for varying levels of donation from ‘project backers’. If a project is unable to raise their target funding in the set time, then backers don’t have to pay any money and the project does not go ahead. If a project is successful, then project creators receive their funding and are required to go out and complete the project, including providing backers with their relevant rewards.

How does ‘all-or-nothing’ funding work?

‘All-or-nothing’ funding means that projects only receive their funding if they are successful. If a project needs $3,000 but only makes $2,999, then they don’t receive and funding and backers are not required to pay. So either projects raise all of their target funding or they get nothing.

Why is there a time limit on funding?

Projects need a clear end date to their crowdfunding campaigns, otherwise we might never know if they are finished. Providing a clear end date also helps to produce some urgency and it means that project can’t stretch out forever.

Can I raise more money than my target funding goal?

You most certainly can raise more money than your funding goal. This is why it is always a good idea to aim for just enough money so that you know you can complete your project. You can always raise much more than this and even offer to add components to your project if you reach higher ‘stretch goals’.

What can I fund?

Crowdfunding is great for funding creative projects, like albums, films, performances and art shows. Crowdfunding is also ideal for innovators and technological projects like mobile phone apps, games, new products and manufactured goods.

Who can create a project?

For legal issues you have to be over 18yrs of age to create a project. If a school class or someone younger would like to create a project, then we just need a teacher, parent or guardian to create the project and become responsible for it.

Unfortunately Sproutback is only open to creators in Australia, we hope to expand that in the near future, but would love to hear feedback from our global neighbours on where we should head next.

Who can back projects?

Backing a project is open to anyone worldwide across the internet. If you are backing a project from outside Australia, make sure that the reward level you have selected has overseas shipping (if applicable).

Does Sproutback check the projects before they go online?

Sproutback performs a due diligence check of all projects before we approve them. We check that the project meets our guidelines and that the rewards are within our rules. It is up to project backers to do further research into projects should they want to check the validity of a project.

How does Sproutback make money?

Sproutback makes money by taking 5% of the total funds raised on successful projects. Sproutback only makes money on successful projects, so there is very little financial risk in running a crowdfunding campaign on Sproutback. It is very much in our best interest to help projects to succeed and that is what we are all about.

Do backers gain any ownership of my project or a stake in it?

No, not at all. Project creators retain 100% ownership of their projects. We don’t allow for projects to offer any equity in their idea as a reward or otherwise. In return for their donation, backers usually receive a reward that is some way related to the project.

Are there any extra costs?

Pledges are also subject to transaction fees of around 2-3% of the total amount raised. For more detailed information, please see our pricing page

 

Accountability

Who is responsible for a project’s completion?

The sole responsibility for a project’s completion lies with the project’s creator(s). Sproutback is in no way obliged to ensure that a project reaches completion. We do however list the project creator’s responsibility in our Terms and Conditions and failure to complete a project may result in legal action being taken.

How do I know if a project will happen and I’ll get my reward?

If a project does not reach its funding goal, then it will not go ahead at this point. Should a project be successful, there is no absolute guarantee that a project will go ahead. It is up to the project backer to perform any extra research into the project creator’s ability to complete the project and deliver on rewards.

How do I know the creator is a real person?

When creating a project, we ask creators to submit verification of their identity. We can’t guarantee their identity anymore than this, but rest assured we want to make sure that we’re dealing with real people even more than you do.

Can I get a refund if the project doesn’t go through after they reach their goal?

If a project does not go ahead then it will be up to the project creator to organise any repayments back to project backers. This may be at a lesser amount than was originally pledged, as Sproutback will have already taken out 5% as well as transaction fees. If a project does not go ahead, then legal action may be taken against a project’s creator.

Is a creator legally obligated to fulfill the promises of their project?

Yes. When a project creator begins their campaign, they agree to our terms and conditions, that state that they are bound to complete their project should they reach their funding goal.

What can I do if a creator doesn’t provide what they say they will?

Your first step should be to get in touch with the project creator and see if what the hold up is and to confirm whether they are able to or have any intention to finish the project. Failing this you may consider getting in touch with other backers and joining to take formal action against the project’s creator.

 

Getting Involved

What can I do to get involved?

You can get involved by joining Sproutback and then either supporting a project or starting one yourself.

How do I start a project?

To start a project you need to sign up or login to Sproutback and the click the ‘Start’ button in our top menu.

How do I find cool projects to support?

By clicking explore in our menu you are able to browse through all of our projects and filter them by category, and sort them. You can also search for projects directly. Another great way to hear about cool projects is to sign up to our newsletter by selecting the option under your profile settings.

Where can I ask more questions?

If you’ve had a read through our FAQs and our guidelines and still can’t find the answers that you’re after, then please feel free to reach out to us through our Help form and we will do our best to answer your question in a timely manner.

 

Backers

What if my payment is declined?

This can happen as a result of using an expired, cancelled, or maxed-out (empty) credit or debit card. If this is the case, we will try twice more to withdraw your funds at 24hrs and 72hrs after our original attempt to accept your payment. If you are unable to pay by our third attempt (at 72hrs), then you will forfeit your pledge and reward. You can also contact us through our contact form before the 72hr time limit and we will try to manually accept your payment.

How do I let Sproutback know if I think a project is dodgy?

Should you suspect a project of not being legitimate then we would love to hear about it. Please get in touch with us through our contact form and let us know which project you think might be false and why.

How do I report a copyright breach by one of the projects on Sproutback?

If you suspect or know that your own or someone else copyright is being infringed on, then please let us know through our contact form and clearly describe, where, how and on what project the breach is taking place.

When does my pledge get taken out of my account?

Your pledge will be withdrawn once the successful project has reached the end of its defined timeframe. If a project is unsuccessful no pledge will be withdrawn.

Can a project earn more money than their goal?

There is no limit to how much money a project can raise and it is possible for a project to exceed their funding goal by many thousands of dollars or more.

What do Projects do with the extra money that they raise?

Most projects offer a final product as a reward for reaching their goal. In this case, it means that many projects that raise more money usually have to put it towards making extra rewards.

In some cases, projects will offer ‘stretch goals’, where if they hit a further target they may offer a new style or colour of project, or maybe they can do something even better.