Why Are Entrepreneurs So Inclined Towards Crowdfunding?
Our previous blog about Crowdfunding must have given you a fair idea about what actually crowdfunding is and how it works. In this blog, you will come to know why more and more entrepreneurs are opting for Crowdfunding over traditional methods of fund-raising and how some of them have created a buzz across the globe with their successful crowdfunding campaigns.
The Benefits of Crowdfunding
From tapping into a wider investor pool to enjoying more flexible fundraising options, there are a number of merits to crowdfunding over traditional fund-raising methods:
1. Reach – By using good crowdfunding platforms, you have access to thousands of accredited investors who can see, interact with, and share your fundraising campaign.
2. Marketing – An active crowdfunding campaign is a good way to introduce a venture’s overall mission and vision to the market, as it is a free and easy way to reach numerous channels. Many crowdfunding platforms incorporate social media mechanisms, making it easy to get referral traffic to your website and other social media pages.
3. PR – The momentum created by successful crowdfunding campaigns make for interesting reading, and reporters are always hungry for them. Crowdfunding is a unique and hot industry these days, and countless entrepreneurs who have been successful with it have seen larger success and exposure as a result.
4. Validation Of Concept- As potential investors begin to express interest, give feedback and ask questions, you will quickly come to know if there is something missing that would make them more likely to buy in.
5. Efficiency – One of the best things about online crowdfunding is its ability to centralize and streamline your fundraising efforts. By building a single, comprehensive profile to which you can funnel all your prospects and potential investors, you eliminate the need to pursue each of them individually.
Where and How to do it
There are numerous crowdfunding platforms where consumers can safely ask for or donate money such as Kickstarter, Pik A Venture, Fund Dreams India, Indiegogo, Catapooolt, RocketHub, Start 51, Keggo.org to name a few. While each site offers its unique spin, the general concept is the same across the board. Project creators can create a profile typically containing a short video, an introduction to their project, a list of rewards per donation, and some images to elaborate. The idea is to create a compelling message that readers will be drawn towards. The idea of “it’s not what you do, but why you do it,” really hits home here. By focusing on a bigger purpose, the driving force behind a brand, project creators will be able to create a unique community of like-minded individuals. Each campaign is set for a goal/target amount of money and a fixed number of days. Once the project is launched, each day will be counted down and the money raised will be tallied up for visitors to follow its success.
It’s not as easy as it seems
There is a huge misconception that creating a successful crowdfunding campaign is as simple as hitting submit and waiting for it to go viral. While this has happened to many brands, the vast majority of projects will require a decent amount of effort on the part of the project creator.
Utilizing social media, creating email distribution lists before the project launches, contacting local media, are all necessary steps to take if you are serious about your goal. Remember, this is not a platform to ask for a handout. If you expect people to join your cause, you had better be prepared to prove your salt.
Each campaign should contain a powerful reason behind the idea, exciting and unique rewards, and an eye-catching display. Video definitely plays a huge role in this last point because in this age of the digital reign, many consumers will stop reading your campaign if they don’t connect to the video.
Success stories to get inspired from:
1. Green Pea Cookie: A recipe discovered by three cookie lovers, Green Pea Cookie, is made from crunchy roasted green peas that offer a combination of a sweet and savoury taste. Their flavours include original green pea, chocolate-dipped green pea and cranberry green pea. Best thing about them? You can eat up to 6 and only consume 100 calories. After realizing the potential this treat they decided to make Green Pea Cookie come to life! Within 7 hours of launching their crowdfunding campaign for it on Kickstarter, they had already met their goal of $5,000. As of today they have exceeded their goal by 397% with more than 25,000 cookies pledged.
2. Sheroes Hangout: This fundraising campaign is being run by Acid Attack Survivor Ritu to fulfil her dream of owning her own chain of restaurants in UP. She started off by opening a cafe in Agra for which she bought the equipments and paid remunerations to her fellow survivors at the initial stage with the help of funds raised from crowdfunding. Having launched this crowdfunding campaign on FundDreamsIndia.com, Sheroes Hangout has raised more than ten lakh rupees till date and has expanded across many cities in UP.
So what are you waiting for? Originators, jump the band wagon and rock the world! Supporters, get rewarded and enjoy your emotional satisfaction. Visitors, get inspired and launch your dreams.
Now is the time for you to start this incredible journey of owning your own tomorrow!