All about DubaiNEXT: A new digital crowdfunding platform
Are you an innovative start-up struggling to secure funds to grow? Or an aspiring entrepreneur with a creative business idea that you’d like to bring to life? In today’s digital age, lack of funds no longer needs to be an impassable barrier. Online crowdfunding platforms such as the newly-launched DubaiNEXT can help ambitious start-ups, entrepreneurs and innovators to get their creative projects off the ground!
Interested in pitching your idea on DubaiNEXT? Here’s how this crowdfunding platform works, who can apply for it and the other nitty gritty details you should know about it!
What is DubaiNEXT?
DubaiNEXT (also referred to as Dubai NEXT) is a non-profit, digital crowdfunding platform backed by Mohammed Bin Rashid Establishment for SME Development (Dubai SME). The first of its kind in the UAE, Dubai NEXT offers innovators, entrepreneurs and ambitious youth a platform to pitch their creative ideas and secure funding for their projects.
Launched by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai, Dubai NEXT aims to support the SME sector and provide innovative financing methods for entrepreneurs.
What is crowdfunding?
Crowdfunding is the process of financing a business venture, project or idea by raising small amounts of capital from a large number of people. This makes it different from traditional means of financing, which typically requires entrepreneurs to approach a limited number of wealthy investors.
With crowdfunding, innovators can reach a massive number of potential investors through a single platform, increasing their chances of successfully funding a project!
How it works
Got a unique business idea and dream of turning it into reality? DubaiNEXT allows individuals and companies, regardless of their age or nationality, to start a campaign on the platform. Once you’ve logged in using UAE Pass, the platform lets you set a crowdfunding goal, an end date for the campaign and a minimum contribution amount. You can also add a video and FAQs section to your campaign page to offer greater insight to potential contributors.
You will keep complete ownership of your business or project, as Dubai Next is a rewards-based crowdfunding platform. You can offer different rewards to your supporters, based on their contribution amount. Once you’ve reached 100% of your crowdfunding goal, Dubai NEXT will also support you in the next steps to launch your business.
However, keep these DubaiNEXT rules in mind when applying on this crowdfunding platform in Dubai:
- The location of the business/individual must be in Dubai.
- There is no protection for ideas or intellectual property.
- All business ideas are accepted on the platform, even those at a prototype level as long as they are Shariah compliant.
Wondering who can contribute on the Dubai NEXT crowdfunding platform? Well, just about anyone! Any individual or company based in the UAE can contribute towards a campaign they want to support.
- While contributors can choose from the different rewards, campaign owners will keep 100% ownership of their idea/business/project.
- If a campaign doesn’t meet the goal by its end date, the contribution amount is refunded to the donor.
When does a campaign receive the funds raised on Dubai NEXT?
To protect both contributors and campaign owners, the funds raised by a campaign will not be released till it meets its crowdfunding goal. Instead, Dubai SME releases the funds only when a campaign reaches 100% of its goal.
Are there any registration fees?
Dubai NEXT does not charge any registration fees to applicants or contributors. However, successfully-funded campaigns will be charged a 5% service fee once they reach 100% of their goal.
Frequently Asked Questions
Can students start a campaign on Dubai NEXT?
Most definitely! Dubai Next encourages students and graduates to pitch their ideas on the crowdfunding platform.
Are there other crowdfunding platforms in Dubai?
Eureeca and Beehive.ae are some of the other platforms for digital crowdfunding in Dubai, although they operate on different models.
The launch of DubaiNEXT is exciting and promising news for ambitious entrepreneurs and innovators with a creative idea they’d like to bring to life! It’s also another step in Dubai’s commitment to building a knowledge-based economy and supporting the SME sector.
Dubai’s world-class business environment means that anyone with a unique idea can now start a business or a brand! While the paperwork may seem daunting, you can employ the services of business set up companies in Dubai to help you with the process. If you have a wealth of entrepreneurial experience behind you, you can also consider applying for the Business Gold Visa in Dubai.
Discover more resources for business owners and entrepreneurs in the UAE on MyBayut!
