You’re an early-stage growth company and it’s time to raise some capital. While it has never been easier to get your business out to the investing masses, the competition never been more intense. Before you set out on your fundraising journey, take a look at these six tips to successful crowdfunding.
1. Video is Crucial but it Isn’t Everything
Make no mistake, your video demo is the most important part to your crowdfunding campaign, but also be aware that it’s not a good idea to poor all your resources into the demo alone. Set a budget for your demo and stay within it.
2. Put More Focus on Story, Not Quality
Sure it looks nice to a polished demo on screen, but good cinematography won’t win investors over alone. Focus on a good story and really sell yourself. In this business looking are not necessarily everything.
3. Pass the ‘Mom’ Test
If Mom won’t buy it, chances are outside investors won’t either. Furthermore, it’s a good idea to go into a crowdfunding campaign with some backing to lean on – even if it is just from friends and family. Do your best to put some money in the bank early.
Encourage everyone to share your content online in exchange for a discount or a free product or service.
5. Set Achievable Goals
Set reasonable goals that you can quickly reach – it establishes credibility early on and provides momentum. Set a target you can reach within 24 hours if possible.
6. Mobilize your Targets
Before launching your campaign, it’s a good idea to get together an extensive email directory together. Most money you acquire is going to come from investors who hear about you via email.