How to Launch A Successful Crowdfunding Campaign

In this guest post Bharathidasan Moorthi of ZingoHub sets out the key steps to run a successful rewards crowdfunding campaign
Crowdfunding is described as, “the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet”.

In simple words, crowdfunding is the method of raising money for your idea and project by launching it on crowdfunding websites.

Crowdfunding is predicted to be one of the biggest financial changes in history. Commentators are of the opinion that it will revolutionize the way money is exchanged in the world.

The crowdfunding model is fueled by three types of actors: the project initiator who proposes the idea and/or project to be funded; individuals or groups who support the idea; and a moderating organisation (the “platform”) that brings the parties together to launch the idea.

Because The Crowdfunding Revolution is Here to Stay!

The power of the crowd is massive. The fundraising industry has democratized financial lending. And this is why innovators and creators have welcomed crowdfunding platforms with open arms. Since its inception, crowdfunding has witnessed rapid emergence and adoption. And so, innovation has progressed beyond reliance on a few investors’ hands, VC’s or Angel Investors.

The Crowdfunding Centre’s Report identified two primary types of crowdfunding- equity crowdfunding and rewards based crowdfunding. 
In equity based crowdfunding, the backer receives a share of the company in exchange of the money pledged. One of the main disadvantages are the restrictive policies exerted by governments, especially on digital equity crowdfunding.

Crowdfunding, specifically rewards-based crowdfunding, includes raising funds from the crowd or ‘backers’ in return of rewards, rather than an equity stake in the company. It has helped creators and innovators including musicians, artists, designers as well as tech enthusiasts to bring their project to life. Rewards based crowdfunding is one of the most feasible options to raise funds to become leading entrepreneurs.

“Crowdfunding empowers the next generation of creators & innovators and democratizes commerce as a whole. It will create the next Nikes, the next Rihanna’s, and the next Spielbergs”, remarks Haider Aly-Reza, co-founder of ZingoHub.

How to Launch a Successful Campaign

Whether you are an artist, musician, filmmaker, or a designer- crowdfunding is a great way to launch your project and show your talent to the world. You would also gain a lot of audience for your work which can take your projects to new heights.

You have a business plan and want to take it to the next level. With crowdfunding, you can raise funds for your startup. Share your revolutionary idea with your target market and test it out.

Your campaign page is your space to communicate with your community. An opportunity to make a connect and to show that you will do what it takes to make this project happen because of what it means to you.

To make sure that your message gets across let us cover the basic 3Ws:

Who are you?
Introduce yourself to the community, the people involved in the project (if any), your previous work if it’s relevant to your current project.

What is your idea?
Don’t spare any details, find interesting ways to put your project across and grab the attention of the backers.

Why is it so important?
Talk about how you came up with the concept, share your inspiration, maybe it will inspire the backers too!

Realistic Pre-Launch Goals:

The goal amount you set should be the minimum viable amount that you need to make your project happen and send out rewards that you have promised.

While you might have an idea of the budget for your project, but if you haven’t launched a campaign before, rewards is not an obvious cost to consider. Arranging and sending out rewards may add to your current budget.

Set the realistic number of backers as more of them will be from your own network. Account for all of these people and assess, how many people can you get on board for your project.

The ideal campaign duration is anywhere between 30 to 45 days. It will give you ample time to get the word out and connect with your community for support.

Pitch Video

Your crowdfunding pitch video is crucial to the success of your campaign. If you need backers, you need to make a killer pitch video. As simple as that!

Rewards

The reward level is unique to you. Price it wise and keep it interesting! Follow the reward level checklist to attract more backers.

Promoting Your Campaign

For any project to be a success, it should be promoted well. Have an outreach strategy to reach out to like-minded supporters across the globe.

Once your campaign is Live, announce it to your friends, family and your own network. Social media is the best tool to connect and promote your campaign with the community. Consistent updates about your campaign needs to be put up consistently, and shared across Facebook, Twitter, instagram, LinkedIn, Google+, Pinterest etc.

Public Relations can do a world of good to your campaign if you get covered by a relevant publication.  To get a perfect feature you need to have your pitch ready and polished. Think of a common ground between you and the publication, this will help you connect with the publications and their audience.

Post Launch

Once the campaign is successful, reach out to your backers. Thank them and update them about the rewards.

Successful campaigns can continue to receive exposure on their crowdfunding platforms. Indiegogo InDemand is one such feature for those who have hit their campaign goal. They can continue to grow their community and reach new audiences. Another option is setting up an ecommerce store. One such example is ZingoHub that provides a space for creators and innovators to sell your amazing products to the community.

Crowdfunding is taking on the alternate funding industry by storm. With the rising competition for capital resources and investment, crowdfunding is the go-to platform for startups that need to raise funds.

Founder Series: Luke Fay of VentureCrowd

Crowdfund Vibe sat down with Luke Fay, CEO of Venture Crowd, to discuss the rise of crowdfunding in Australia. 

 

What was the motivation behind starting VentureCrowd?

VentureCrowd is democratising and scaling access to alternative finance. We are an alternative asset equity crowdfunding platform that provides investors with access to alternative investments, as well as entrepreneurs and property developers with access to alternative finance. All parties benefit from alignment, transparency and diversification.

The alternative asset universe has grown substantially over the past 10 years and can offer portfolio benefits such as uncorrelated returns, downside protection and improved risk/return profile. However, until VentureCrowd, direct investments in a diversified portfolio of alternative assets have been unviable to all but institutional investors or ultra high net worth investors with a family office due to large barriers to entry like ticket size, deal complexity and ongoing administration. Through fractional ownership, we offer our wholesale investors the ability to make direct investments into externally validated and curated alternative investments via an integrated platform. At the same time we provide high growth potential companies and curated property developers with access to funding that has been unavailable due to conservative risk appetites and capacity constraints from traditional sources such as banks and investment banks.

Read More

Equity crowdfunding requires a rethink on company structure in Australia

By Marina Nehme

The vast majority of Australian companies are privately held. There are many advantages for this. Private companies face fewer regulations and lower requirements than public companies when it comes to reporting to shareholders, for example.

But new sources of funding are starting to blur the lines between public and private companies. As a result, we should consider introducing an intermediary form of corporation that sits between the two.

The difference between public and private

Private companies are not designed to raise funds from a large group of shareholders. In fact, two of their key characteristics are that they cannot raise capital from the public and they are limited to having 50 non-employee shareholders.

Read More

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