Have an Erotic Idea? Here's How to Fund Your Fantasy
Technology Editor, CNBC.com
From gaming consoles to smart watches, entrepreneurs use crowd funding to fund all kinds of projects these days. But if someone wanted to raise money for a more, ahem, erotic project, well they were just straight out of luck. That is, until now.
Offbeatr CEO and co-founder Ben Tao said his company aims to give those in the adult entertainment industry a new opportunity to innovate.
Piracy has financially taken its toll on the porn industry, making it harder for those with new ideas to get investments, Tao said.
In addition, the porn industry has very limited options when it comes to making money.
"The porn industry's business model is very outdated," Tao said.
Membership sites and pay per download aren't very effective ways to generate revenue, and less revenue means less content, and definitely no room to innovate, he said.
Tao said his company aims to give creators of content access to capital so that they can produce what the fans want.
Offbeatr works a lot like Kickstarter. It allows users who are 18 years old or older to post projects to the site with a funding goal and allows other users to make pledge donations that are only charged if the project meets its goal.
Unlike its more vanilla competitor Kickstarter though, projects are first pitched and must be selected by the folks over at Offbeatr before they can begin to raise funds.
"Offbeatr screen projects first to "filter out serious project creators from the people who just have 'ideas,'" according to the website.
Once selected, project creators can choose to fund their project for 21 days, 30 days, 45 days and 60 days. The minimum funding goal a creator can set is $300 and the maximum is $30,000, although a project can exceed its maximum goal without penalty.