When conventional avenues, such as a bank loan, are unavailable, a growing number of startups are turning to crowdfunding to get their businesses off the ground.
Crowdfunding is a method of raising funds by collecting modest donations from a large number of individuals, and the end result might be significant.
On the crowdfunding platform Kickstarter, for example, the Pebble watch, which syncs with your smartphone, raised more than $10 million.
Do you want to know if a group of investors will back your company’s idea? Take a look at these three characteristics of successful crowdfunders, as explained to Brian Meece, the CEO and co-founder of RocketHub.com, a crowdfunding platform based in New York City.
A compelling and well-written piece
People give you money because they are moved by your story, therefore you must be able to articulate precisely what you are attempting to do and why it is important.
You need to be ready to place yourself before the investors while connecting with them via photos or videos.
There is a need to compel your potential investors such that they would see your passion and be willing to be a part of your journey.
Also read, 4 Things to consider before Crowdfunding
A network that already exists
The crowdfunding process is based on trust and credibility, you’ll need a small group of people to advocate for you and help spread the word.
According to Meece, “every successful crowdfunding effort has an immediate first-degree network that leaps into that campaign.”
But that doesn’t imply you need thousands of Facebook friends to get started; all you need is a small group of people eager to help you get started.
“In middle school, nobody wants to be the first one to dance on the floor,” Meece explains. Investors share this hesitancy: they feel more comfortable investing their own cash when others have already done so.
A lot of cool perks
You’ll need to provide investors something in exchange for their money, be it a sample, the right to vote on how a brand is built, or instant access to a product or service before it hits the main markets.
You’ll also want to provide several degrees of benefits to encourage a wider spectrum of contributions as there will be days where you will see very little contributions but you also have to be prepared to receive lump sums.
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