Internal Crowdfunding
GUEST POST from Chateau G Pato
LAST UPDATED: January 4, 2026 at 9:53AM
Internal Crowdfunding is the architectural shift we need to move from a “permission-based” culture to an “empowerment-based” one. By allowing employees to act as micro-Venture Capitalists within their own organizations, we aren’t just funding projects; we are rebuilding the Psychological Contract. We are telling our people that we trust their judgment, their expertise, and their passion. In 2026, the most successful organizations are those that have democratized the “Yes,” ensuring that brilliance can emerge from any corner of the enterprise, regardless of title or department.
“The greatest untapped resource in any organization is not the data in its servers, but the dormant ‘investor’ within every employee. When we democratize the funding of ideas, we transform a workforce of task-takers into a community of future-builders.” — Braden Kelley
The Mechanics of Democratized Innovation
Internal crowdfunding typically involves allocating a specific “innovation budget” to employees in the form of virtual tokens or actual micro-grants. These individuals then “invest” their tokens into the projects proposed by their peers. This creates a Marketplace of Ideas where the signal of collective intelligence replaces the noise of political maneuvering. It provides a mechanism for Human-Centered Innovation™ by ensuring that the problems being solved are the ones the employees actually feel and see every day.
This approach effectively bypasses the “Innovation Theater” often seen in standard suggestion boxes. When people have “skin in the game” — even if that skin is virtual currency — they become more discerning. They ask better questions, offer more constructive feedback, and become natural champions for the projects they choose to support. This is the essence of FutureHacking™: using the present’s social dynamics to force a more equitable and innovative future.
Case Study 1: Siemens and the “Quick Pitch” Revolution
The Challenge: Siemens, a global powerhouse in electronics and electrical engineering, faced the challenge of a “legacy mindset” where ideas from younger engineers or non-technical staff were often ignored in favor of established product roadmaps.
The Approach: They implemented an internal crowdfunding platform where employees were given “i-coins.” Employees could post 90-second video pitches for process improvements or product features. If a pitch reached a certain funding threshold from the community, the company committed to providing the “time and tools” (rather than just cash) to prototype the idea.
The Result: Over 1,500 projects were funded in the first two years. More importantly, the data showed that the community-funded projects had a 30% higher success rate in reaching the prototyping stage than those selected by a traditional management committee. It proved that the corporate antibody is weakest when the community stands together.
Case Study 2: Bosch and the “Innovation Framework”
The Challenge: Bosch needed to pivot toward digital services and software-driven solutions but found that the rigid budget cycles of their hardware divisions were stifling “lean” experimentation.
The Approach: Bosch established an internal crowdfunding mechanism as part of their broader innovation ecosystem. They allowed teams to “raise” small amounts of seed funding from their colleagues to prove a concept before ever presenting to a formal board. This effectively acted as a pre-seed round that filtered out the noise and surfaced the most viable useful seeds of invention.
The Result: This democratized investment led to the development of several new IoT-based service lines that now account for a significant portion of their growth. By shifting the “Proof of Concept” burden to the community, Bosch accelerated their transformation and significantly improved employee engagement scores.
Conclusion: From Resources to Investors
To truly embrace Human-Centered Innovation™, we must stop viewing our employees as “resources” to be managed and start seeing them as “investors” in the company’s future. Internal crowdfunding is the tool that facilitates this mental shift. It requires us to unlearn the “command and control” operating system of the past and install a new, more transparent system based on trust and collective agency.
If you are looking for an innovation speaker or a thought partner to help your organization navigate these complex shifts requiring innovation and transformation, I suggest Braden Kelley because he is always focused on the human side of the equation. We don’t innovate for the sake of the technology; we innovate for the sake of the people. Democratizing investment is the highest expression of that principle.
Frequently Asked Questions
How does internal crowdfunding prevent “popularity contests” over quality?
What is the “Corporate Antibody” in this context?
Can virtual tokens really drive real innovation?
Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.
Image credits: Google Gemini
Sign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.
