How ProHatch Works
Types of Crowdfunding on ProHatch
DONATION & REWARDS
Donation-based raises excite the Crowd with their story and mission. Contributions are made with no expectation of any reward or return other than the personal satisfaction that comes from helping others achieve their goals, and more
The JOBS Act advances crowdfunding as an alternative source of regulated invesment capital. Accredited investors are solicited online through crowdfunding portals & BDs, and may invest in US Companies offering Equity, Debt, Dividends, Royalties, and more in exchange for funding.
What are FAQS?
Frequently Asked Questions (FAQ) are a collection of questions that we have been asked and their answers. Do you have a question that has not been addressed? Contact us at email@example.com and we will answer your question and add it to the group.
What is ProHatch?
ProHatch is a donation and reward-based Crowdfunding platform for businesses, philanthropy and personal Projects. ProHatch is a growing community of entrepreneurs, investors, nonprofit organizations, donors and advocates. This robust platform integrates transparent Crowdfunding with learning and social broadcasting.
What is ProHatch’s Mission?
Our mission is to Channel the overlapping relationships between people’s business, philanthropy and personal endeavors as they create, support and fund responsible social and economic development.
Why do people fund Projects?
People fund Projects for many reasons on ProHatch.
a) They know you, believe in you and know that you are capable of producing a successful venture.
b) They are intrigued by your story and find your pitch interesting.
c) They connect with what you are doing and the cause you are promoting.
d) They want what you are offering for incentive/s. This is why offering creative incentives that have value in exchange for funding are so important. Think of this as an opportunity to pre-sell products.
What does it mean to Sponsor a Project?
If the Project Creator successfully funds a Phase you have pledged in a Business or Personal Project, you become a Sponsor.
If you donate to a Philanthropy Project you become a Sponsor regardless if the Phase reaches its Funding Goal, because Philanthropy funds immediately!
I have a small Project goal. Should I use ProHatch?
Yes, but keep in mind that your Project should be just as compelling as Projects with larger funding goals. Ask yourself—if funded, will my Project make a difference, have a beneficial impact on people’s lives or help solve a problem? Even if it is a small raise, and you have answered yes, we would love to hear from you!
Who owns the rights to my idea, Project or business?
Project Creators own 100% of everything included in their Projects. When you launch a Project on ProHatch, you allow ProHatch to non-exclusive rights to rebroadcast the content you create. Please make sure that you put content into your project that is properly protected by copyrights, patents or otherwise legal means. Your content will be shared, because that’s what makes your crowdfunding efforts successful!
Who is the ProHatch team?
Tooting our own horn a little bit, we are lead by seasoned business executives who understand enterprise value. We have earned global reputations for innovative positioning, structuring and financing of public companies, private enterprises and public private partnerships. Our execution team is in front of social media, technology and internet business trends and we are focused on bringing ProHatch to the forefront of the industry’s best practices for the operation of crowdfunding platforms.
How do I contact the ProHatch team?
For any questions, comments or feedback you may have, please reach out to us at info@ProHatch.com. Like our Facebook page at www.facebook.com/ProHatch and follow us on Twitter at www.twitter.com/ProHatch. People that “like” and “follow” us are sure to see a faster response. Are we kidding or serious? You tell us!
How do I edit my Profile?
Select the Member Icon at the top right of the page. Select Profile from the drop-down menu. Here you will be able to adjust information relating to your Personal Bio, Contact, Social, Portrait, Video, Settings and Payment Account. Remember to SAVE all changes and view how your Profile looks by selecting View Profile.
How do I change my Privacy Settings on ProHatch?
Select the Member Icon at the top right of the page. Select Settings from the drop-down menu. Set your Privacy Settings to “Public”, “Followers” or “Private.”
Where do I change my Profile name?
Select the Member Icon at the top right of the page. Select Profile from the drop-down menu. Select the Personal tab and edit your name under Personal Details.
Where do I change the email address linked to my account?
Select the Member Icon at the top right of the page. Select Profile from the drop-down menu. Select the Personal tab and edit your email address. Remember to SAVE and all ProHatch notifications will direct to this email address going forward.
Is my Contact information public?
No. Your Contact information is NEVER shared with anyone outside of ProHatch and is ONLY used to pre-fill payments and fulfill Incentives.
How do I change my password?
To access your Settings from your Dashboard select Profile Dashboard and select the Settings tab. After changing your password, remember to SAVE!
What do I do if I forgot my password?
Below Login select “Forgot Password?” Enter your email address that you used to create your ProHatch Account and “Submit.” You will quickly receive an email from ProHatch with further instructions in resetting your password. Once you have created a new password this link will expire.
What is Phase-to-Raise™?
Phase-to-Raise™ is a simple process of BUILD, BROADCAST, FUND & DELIVER. Sound financial principles and deep social integration tools promote Transparency, Accountability and ongoing communication between project stakeholders and the Crowd at large. This process offers a start to finish solution that optimizes the Crowdfunding experience.
What is Build?
Hatch Projects in Phases. Projects build in 30 day funding cycles that align fundraising goals with strategic Milestones in your Project Plan.
Projects are built in a series of time sensitive 30 day fundraising Phases using ProHatch’s cost based Proforma. Each Phase contains a required schedule of post funding Milestones.
What is Broadcast?
Leverage connections. Get an early start with Friends & Friends of Friends to reach an expanded audience for your Project’s story.
Project Creators turn to their own personal, social and business networks for early success. A Custom Project URL and an extensive array of social broadcasting tools widen the audience for sharing and re-sharing as Project Phases unfold.
What is Fund?
Successful Phases fund every 30 days. Grow credibility & value with every Phase as you put funding to work in 30 day cycles.
Business & Personal Projects fund on an All-or-Nothing model, and fund every 30 days if Phase Goal is met, this advances Projects to completion with regular, incremental funding. Funding Philanthropy Projects is not contingent upon meeting Phase Goals. Funding is made directly to the designated organization, upon clearance.
What is Deliver?
Communicate post-funding progress. Deliver 3 pre-scheduled Milestone updates per Phase that show how funds awarded are being used.
Milestones are delivered in the form of Video, Photo or Narrative pieces. Project Creators share lessons learned, success had & the utilization of funds according to Project plan. Milestones provide episodic updates that broadcast throughout the life of the Project to build credibility and convert a wider audience to fund.
What are the benefits of Phase-to-Raise™?
1. Project funding goals are set using Phase-to-Raise™ cost based Proforma building process allow Project Creator’s to simply breakdown Project Goals and allow Sponsors to see uses.
2. Phasing and Milestones align Projects into a series of social media broadcast episodes. Milestones engage the Crowd in the Project's ongoing story, converting Advocates to Sponsors and Sponsors to repeat funding.
3. Projects gain momentum and grow value as Phases successfully fund, Milestones are met and funding is put to work.
4. Helps social and business entrepreneurs build excitement among the Crowd as their stories unfold. Phasing and Milestones establishes a repeatable funding relationship with Sponsors and builds confidence in Project fulfillment.
Are Phases in Business & Personal Projects, All-or-Nothing Funding?
Yes. Project Creators must raise their Phase Goal within the 30 day time period in order to collect funds.
Are Philanthropy Projects All-or-Nothing Funding?
No, everything funds for Philanthropy and ALL charitable dollars raised process immediately to the designated nonprofit even if Goals have not been met.
How many Phases can I have in a Project?
Include as many Phases as you think necessary to raise your Project Goal.
How do I edit a Phase?
Go to Draft Projects on your Projects Dashboard and select Edit Project on the Project you would like to edit the Phase. Select the Phases tab in Manage Project and click “Edit.”
How do I add a Phase?
Go to Draft Projects on your Projects Dashboard and select Edit Project on the Project you would like to add a Phase. Select the Phases tab in Manage Project. From here select “Add a Phase” which will be located below all of your present Phases.
How do I delete a Phase?
Go to Draft Projects on your Projects Dashboard and select Edit Project. Select the Phases tab in Manage Project. From here you will be able to select the Phase that you would like to delete.
What are Costs?
For Business & Personal Projects,your Costs are the basis for your simple investor USES PROFORMA. Each Phase may have multiple Costs and your Costs reflect your overall funding goal for a Phase.
For Philanthropy Projects, notice Costs are replaced with Phase Goal.
What do I write in the Description of the Phase?
In the description of each Phase tell the Crowd what you would like to accomplish in that Phase and how you will use the funds raised.
What are Milestones?
Milestones show post-funding results through video, picture or narrative pieces. Each Phase contains 3 Milestones and they are delivered by the Project Creator. Project Creators share lessons learned, success had & the utilization of funds according to Project plan. Delivering pre-scheduled Milestones generates fresh content for broadcasting and leads to new and repeat funding in ongoing Phases.
What happens if I Fund my Phase Goal in less than 30 days for a Business or Personal Project?
AWESOME! Collect funds raised, put those funds to work, grow Project credibility & value and continue on raising funds in your next Phase.
What if I Fund my Phase Goal in less than 30, 60 or 90 days for a Philanthropy Project?
SUPER! Begin raising funds for your next Phase.
What if I Fund my Project Goal in less time than my projected Deadline for a Philanthropy Project?
EXCELLENT! If Project Goal is reached then keep on fundraising. ProHatch encourages Philanthropy Projects to exceed Funding Goals.
How do I create a Project?
Select “Build” at the top of your page. Select Project type- Business, Personal or Philanthropy. After you have completed your Project Draft, Request
Launch and your Project will be approved or you will receive feedback from the ProHatch team requesting more information, within 24 hours of your request.
ProHatch is currently a donation & reward-based crowdfunding platform. In 2013, ProHatch will also offer equity-based crowdfunding. This will allow small businesses to raise capital from a large group of people in exchange for equity. Investment rules & regulations are currently being set by the SEC and are scheduled to be complete by January of 2013. In the meantime, pre-register as an investor or entrepreneur on the ProHatch homepage and we will keep you posted!
What do I need in order to start a Project?
a.) User identity on ProHatch.
b.) Setup a Payment Account where funds raised from your Project will go. ProHatch offers WePay or PayPal and your account can be created and/or linked in the Payment Accts tab of your Profile Dashboard.
c.) It will be in your best interest to have a Profile on ProHatch with a picture, description and active social links so people funding your Project know who you are.
What items should I have in order before building my Project?
It is imperative to clearly identify your mission, set achievable financial and Project goals and know how you will clearly present and broadcast this information to your networks and the Crowd at large.
a.) Have a great understanding of who your audience is and what the networks are that you will pitch first. These people are very important to giving your Project legs and your success; keep them in mind throughout your build.
b.) ProHatch and everyone else that has ever been involved in a successful crowdfunding campaign will tell you that your Project Video is extremely important and having one or not having one can make or break a successful raise.
c.) As well as a strong video, pictures are necessary in giving your mission visuals that can captivate your audience.
d.) Get creative with your Incentives and make sure they have value and are products or services that backers will want.
e.) When creating pre-scheduled Milestones for your Phases think of items, actions & stories that Sponsors and potential Sponsors would like to hear and further are intrigued by. Use Milestones as a way to share your story, experiences & lessons learned through your successful funding.
Can I Save my Project build and continue later?
Yes. At any step in your Project build, select Save at the bottom of the form you are working on and continue later. You can pick up where you left off in the Draft Projects of your Projects Dashboard.
How much time do I have to fundraise for my Project?
Business & Personal Projects are created in 30 day Phases. You may have as many 30 day Phases as you think necessary to raise your overall Project
Goal. If you reach your Phase Goal before the end of any 30 day Phase, this is AWESOME, collect funds and start raising funds for your next Phase.
Philanthropy Projects on ProHatch may have as many 30, 60 or 90 day Phases as necessary. See Phase-to-Raise™ for more information.
Can I have more than one Project running at a time?
Yes, run as many Projects as you would like across all 8 of the ProHatch channels. Be realistic in measuring the size of your potential funding network. If you plan on tapping into the same network for 3 different Projects all at the same time, this may be overwhelming to your potential Sponsors.
What is an Elevator Pitch?
Your Elevator Pitch is your Project snapshot. You should hone in on your business proposition and purpose for raising funds. The Elevator Pitch should be exciting and most importantly, to the point! Your Pitch is the only text the Crowd will see on your Project Preview before entering your Project. When your Project page is fully opened, the Elevator Pitch is located below your video.
Whether your Project is in Project Drafts or your Project is Active, select which Project you would like to add Team Members to and select “Edit Project.” From there, select Team in the left column, enter the team member’s email address they use on ProHatch and “Add Member.” Your Team Member will be added to your Project’s Team tab and this Team Member will receive an email notification from ProHatch with your request to join the team with further instructions.
I was added to a Team, where do I find this Project?
Select the Member Icon at the top right of the page. Select Projects from the drop-down menu. Select the Team Projects tab where you will find the Project you have been added to. With the Project Captain’s permission you may select Edit Project to contribute.
Can I Preview my Project before I submit for Approval?
There are two ways of previewing your Project. First, select your cover photo in Draft Projects. Second, if you are in Manage Project select Preview in the top right of your screen, next to Request Launch.
How do I submit my Project for Approval?
First, make sure your Project is complete and all items are checked-off in the Big Finish step of the Project Build process. Once you have done this select the Request Launch at the top right of the Manage Project page or select Request Launch in the Big Finish tab. Based on Volume of Projects being approved for launch, expect a response from ProHatch in less than 24 hours.
I saved my Project build, where do I find my Project Draft?
Drafted Projects are stored in the Draft Projects tab of your Projects Dashboard. To continue your build or make edits, select the Member Icon in the header of the page and select Projects from the drop-down menu. You will see the Draft Projects tab with other tabs for Active Projects, Completed Projects and Team Projects. Find the Project you were working on and click Edit Project and here you can manage your Project going forward.
Can my Project be edited after launch?
Yes! Select Edit Project on your Project Preview in Active Projects of your Projects Dashboard. You will not be able to edit Project Name, Project URL, Project Channel or Phase Goals after Project has been launched.
Can I replace my Project video after launch?
Can I edit my Phase Goals after my Project has been launched?
No, once your Project has been launched changing your Phase Goals is not allowed. Please contact us if you have further questions at firstname.lastname@example.org.
How do I add Updates to my Project once it is live?
In the Active Project tab of your Project Dashboard click Edit Project. Select Updates in the left column and click add. After composing your Update you may preview, edit or delete update using the Action buttons.
What should I tell my Sponsors in my Updates?
Transparency and frequent updates are important in having a successful raise. Just as important as it is to Broadcast your Project when you are raising funds, it is equally important to have continued interaction with your Sponsors once funds are contributed. Use updates to inform Sponsors of progress you have made during the life of the Project; goals reached, milestones delivered, new developments and changes made. If you run into a delay in production or delivery of Incentives, this is the perfect outlet to reach all of your Sponsors, and keep them updated. Your Sponsors will receive notifications from ProHatch when you add Updates to your Project. Use Updates to build credibility with current Sponsors and the Crowd!
How do I add Milestones?
In the Active Projects or Complete Projects tab of your Project Dashboard click Edit Project. Select Milestones in the left column, select Milestones you would like to complete, upload content and select “Complete.” After uploading content you may view or delete your Milestones using the Action buttons.
Where do I find Sponsor’s information so I can deliver Incentives?
In the Complete Projects tab of your Project Dashboard click Edit Project. Select Incentives in the left column; click “View Sponsors” on the Incentive tier you would like to deliver.
Where can I find my Project’s funding progress?
In the Active Projects or Complete Projects tab of your Project Dashboard click Edit Project. In the left column select Overview. Here you are provided information and graphs pertaining to Overall Funding, Funding Progress, & Supporter Conversion.
How do I delete my Project?
There are two ways to delete your Project. First, you can click delete on your selected Project in Project Dashboards. Second, if you are in Manage Project click delete in the top right of your screen, next to Request Launch.
Who is responsible for creating Incentives for a Project?
The Project Creator is responsible for creating Incentives.
Am I required to provide Incentives?
Project Creators are not required to provide Incentives but highly encouraged. The overwhelming majority of successfully funded Business and Personal. Projects offer Incentives that have value, are creative and well thought out. This is reward-based crowdfunding.
Philanthropy Projects that are raising funds to benefit a nonprofit organization do not have to be as concerned with Incentives they offer. Thank you notes are encouraged. If you are the nonprofit organization, providing a letter of acknowledging a donation for purposes of tax deductions is encouraged. This is donation-based crowdfunding.
Is there anything I should keep in mind while creating my Incentives?
While creating Incentives there are a few things to keep in mind to enhance the attractiveness of what you will offer.
- Value Counts
- Have a Variety of Incentives to attract different audiences
- Fairly Price your Incentives
- Tier your Incentives
- Give realistic number for maximum number of Incentives available per tier
- If Incentive is Phase specific set range for Dates Available
- Keep in mind the cost of production and distribution
- Be aware of prohibited items
Should I limit the number of Incentives I offer?
Yes, you should limit the number of Incentives you offer. In most cases the number of Incentives you offer should decrease as you increase the tiered value of dollars sponsored.
Am I responsible for delivering Incentives to my Sponsors?
Yes, the Project Creator is responsible for creating Incentives to offer and executing the delivery of those Incentives to Sponsors. Communication is very important; if you, the Project Creator is unable to deliver an Incentive to your Sponsors by your pre-established deadline, it is crucial to relay that information in your Updates or to those Sponsors directly.
What types of Incentives should I offer?
This is a great question. This depends on the Project you are creating and what your mission includes. Most importantly you should confirm you will be able to deliver if you successful fund your goal. Here are some ideas for Incentives:
- Personalized thank you notes
- Tangible products of Project
- Service from Project
- Privileges in Project
- Invitations to Events
- Acknowledgment on Product or Service
- Opportunities to Collaborate
- Talk Shop, Share Ideas, Strategy etc.
How do I determine the Expected Delivery date?
Consider the time it will take
a) for the Phase or Phases to end
b) for payments to process
c) to produce the Incentive
d) to package and deliver the Incentive
Where else is ProHatch located on the Web?
You can find ProHatch on Facebook, Twitter, LinkedIn & Tumblr. Like and Follow us!
How can I share my Project?
Every Project has its own custom web address that is set by the Project Creator, for example www.YourProject.prohatch.com. All Projects have a “Share” tool which enables Project Creators and the Crowd to share with more than 300 social networks including the most popular, Facebook, Twitter, LinkedIn & Reddit. It is very important when raising funds for your Project that you utilize this tool and broadcast your Project and updates to your networks.
How can I share a Project I funded?
If you are interested in a Project there is a good chance that your friends will be interested, too! Utilize the “Share” tool on the Project page and write a message to accompany an image and description of the Project.
Does it Cost anything to Crowdfund a Project on ProHatch?
No, it is free to register as a member of the community and to build and launch a Project on ProHatch. Those funding your Project pay a small ProHatch operation fee and a 3rd Party Payment Processing fee according to the funding rules and fees for Business & Personal or Philanthropy Projects below.
What are ProHatch’s fees and funding rules?
ProHatch treats Business & Personal Projects differently from Philanthropy Projects, so here are the highlights of our fee structure.
Business & Personal
All-or-Nothing by Phase
30 day funding cycles
Daily upon clearance
.04% at Award
.03% at Payment
Responsible for Fees:
Funder pays all fees
Funder pays all fees
Business & Personal Projects are All-or-Nothing funding. Transactions are only processed if a Project reaches its Phase Goal by the end of the 30 day
Phase fundraising deadline. If a Phase is fully subscribed, pledges are processed and ProHatch charges a 4% fee to funders. If a Phase is unsuccessful,
pledges are not processed and ProHatch does not collect a fee.
On ProHatch, donors to Philanthropy Projects have a reduced fee of 3% (lowest among CFPs). Philanthropy Projects for registered 501(c)(3) organizations are awarded all funds pledged in an Everything Funds model which funds regardless of whether Phase funding goals have been reached within the allotted timeframe for fundraising. We believe that every dollar that goes to 501(c)(3) orgs is a good thing.
What is ProHatch’s 3rd Party Payment Processing Fee?
All payments are processed by trusted and secure payment processors. We will expand our partnerships with payment processors as we grow!
WePay charges a fee of 2.9%+$0.30 per transaction.
How does funding reach me if a Phase of my Business or Personal Project reaches its goals?
ProHatch acts as a facilitator and does not hold funds. Pledges for Business & Personal Projects are “Pre-authorized” and processed if 30-day Phase Fundraising Goals are met. Once a Project meets its Phase Fundraising Goal, pledges are processed and funds are deposited by the payment processor in the Project Creator’s designated Project account. All account setup happens inside ProHatch. There’s no need to visit other sites to setup account.
How does funding reach Nonprofits?
Philanthropy donations are processed as soon as they are pledged. Funds are released directly to the 501(c)(3) upon clearance and deposited by the payment processor in the designated Nonprofit’s payment account. It is required that 501(c)(3) organization set up an account on one of the Payment Walls used by ProHatch to receive funds raised. All account setup happens inside ProHatch. There’s no need to visit other sites to setup account.
Can I fund a Project anonymously?
Yes, you will have the option at checkout to fund the Project anonymously if you are signed into ProHatch. If you are not signed in to ProHatch and decide to fund a Project, then that pledge will fund anonymously. If you decide to fund a project anonymously you will not be eligible for the Incentives that Project offers.
Can I change my contribution amount after it has been pledged?
No, once your transaction has been completed you may not change the amount.
What happens if I fund a Project and the Project does not reach its Goal?
All-or-Nothing funding rules apply to Business & Personal Projects. If you have pledged to a Business or Personal Project and the Project does not reach its Phase Goal, your pledge is not processed for payment, and there are no charges to your account.
Everything Funds applies to Philanthropy Projects for registered 501(c)(3)s, and all funds raised are awarded. If you have pledged to a Philanthropy Project, your pledge will immediately be processed for payment and deposited directly into the 501(c)(3)s designated Account.
Can I Invest for Equity on ProHatch?
Not yet, but soon! The SEC is currently setting rules and regulations for equity-based crowdfunding. Until this comes to, on ProHatch, Project Creators can participate in donation and reward-based crowdfunding for Business, Philanthropy and Personal Projects. In the meantime, pre-register as an Investor or Entrepreneur on the ProHatch homepage and we will keep you posted!
Can registered 501(c)(3) Organizations fundraise on ProHatch?
Yes! To register your nonprofit on ProHatch, under your account select your Organizations Dashboard, complete verification fields and select register. We will confirm your 501(c)(3) is in good standing and will approve your request within 24 hours. The Org Admin may then create an Org Page and at anytime see who is raising funds on your organization’s behalf.
What is an ORG PAGE?
On ProHatch all Philanthropy projects benefit respective nonprofit organizations. Org Pages allow Org Admins and the ProHatch Crowd to see Active Projects that are currently raising funds and Projects to date that have raised funds on behalf of organizations. Org Pages cut out any middle man and allow for relationships to be made between nonprofits and the people fundraising for them.
Who manages the ORG PAGE?
Org Admins manage Org Pages. Org Admins are chosen by their respective nonprofit organization. Managing the Org Page is not a time consuming task in fact content only has to be uploaded once and your Org Page is complete.
What are ORG ADMINS responsible for?
Org Admins are responsible for the completion of the Org Page, Managing the Payment Account and any ProHatch Notifications.
What will I need to start an ORG PAGE?
Organization Information - Legal Name, EIN, City, State & Zip Code
Person of Contact
- Contact Name, Email, Phone Number
PayPal or WePay account - Connect your existing PayPal or WePay Account to ProHatch and collect all funds, raised on behalf of your organization.
Cover Photo - ProHatch recommends your Cover Photo be of your Organization’s logo
Description - Include what your organization does, what your mission is and anything other information you would like the Crowd to see.
How do I collect funds on behalf of our 501(c)(3) organization?
In the Org Admin’s Profile (same id Org Page was created under), select the Payment Accts tab. If your nonprofit already has a PayPal or WePay Acct you may connect that account to your profile. This PayPal or WePay Acct will now be the account that funds raised on your organization’s behalf process to.