Crowdfunding Platforms: How to Generate Enthusiasm About Your Project
Revolutionary business idea? Check. Highly skilled team? Check. Funding for your project? Pending.
Getting enough funding to launch your business or keep operations running smoothly is the bane of every entrepreneur. Any start-up owner will tell you that raising capital from investors is a skill all on its own. An element that can elevate your business to the next level or see it buried in the graveyard of dreams alongside millions of other wannabe world-changing enterprises. So, to ensure that your idea doesn’t end up just a dream, how do you go about generating enough enthusiasm on these crowdfunding platforms to secure money for your project?
Why you should definitely consider crowdfunding platforms
If the stats are anything to go by, crowdfunding has proved to be one of the most successful ways of drawing attention to your cause and procuring funds for a project. According to Fundera, each year, $17.2 billion is generated through crowdfunding campaigns in North America. For successful campaigns, the average amount raised is $28, 656.
Why are these platforms so popular? This can be attributed to several reasons. Firstly, there are no credit checks involved for would-be campaign owners. Secondly, campaign owners don’t have to sell their pitch in front of a high-level panel of investors. Additionally, the potential to raise thousands of debt-free money is a sweet bonus. It’s no wonder more than 6 million people took to crowdfunding platforms in 2019 to try to secure a piece of the pie.
With no further ado, here are the top three ways successful campaigners can get their projects to shine and grab the attention of investors.
1. Select a platform carefully
Crowdfunding platforms are not created equal. There are three major categories of crowdfunding: equity crowdfunding, reward crowdfunding, and debt crowdfunding. Under each category are multiple platforms that one can launch a campaign. Popular equity platforms include StartEngine, CircleUp, Crowdfunder, and Localstake. Some of the bigger reward platforms are Kickstarter, GoFundMe, and Ulule. And lastly, top debt crowdfunding platforms are Funding Circle, Lending Club, and Rate Setter.
2. Submit a complete profile
With a platform selected the next step is setting up your profile. People want to know who they are supporting. They want to see pictures, videos, and read stories. In fact, crowdfunding campaigns that have videos raise 105% more money than those with no accompanying videos. And campaigns whose owners kept their followers regularly updated made 126% more than those who ghosted followers.
3. Know which audience to target
Not everyone is your target market. Knowing this ahead of time allows you to craft a campaign that will resonate with your target audience. Take time to familiarize yourself with the trigger points for your select group. What will make them take a double look at your project? How will you light a fire in them and get them excited about your project? A team that did this well are the creators of the wildly popular Star Citizen video game that smashed crowdfunding records prior to the game’s actual launch.
What the future holds for crowdfunding platforms
The dynamics of crowdfunding platforms are changing every day. Equity crowdfunding platforms such as StartEngine are paving the way for a new understanding of public offerings. Thanks to Regulation A, these entities can raise up to $50 million in a 12-month period. It can be said that the potential of liquidity in the future is indeed very bright.