Some of our alumni have been extremely successful in raising money via crowdfunding. Last year, UK tempeh brand Better Nature raised £1.6 million in just two days, making it one of the fastest-funded plant-based crowdfunders to date.
Meanwhile, Pink Albatross, a vegan ice-cream startup based in Spain, recently secured €907,989 in an oversubscribed Crowdcube round. Their original funding target was €500,000.
We’re not trying to say that crowdfunding is a surefire way to raise capital. In fact, only around 50% of campaigns are reportedly successful. However, with careful planning, a solid launch strategy, and the backing of your community, you can help to improve your chances of being on the right side of that statistic. Here are our top eight tips for a successful startup crowdfunding campaign.
Choose your platform wisely
Do your research. There are lots of options out there and you want to be sure to use the platform that is the best fit for your campaign. Pay attention to the reach that platforms are managing to secure, as well as the type of audiences that they have, and make sure that they’re a good match for your startup.
You’ll also want to check out what marketing support the various platforms offer and what languages, payment options, and other tech features they support. Sign up for the newsletters of the platforms you’re considering in order to see the kinds of campaigns that they share, and be sure to check out which previous campaigns have been the most popular.
Your campaign does not start on the day that it goes live. It should be planned well in advance so that you have time to map out the project, put together the materials that you need, and build hype around the launch.
Tom Horbye, Head of Campaigns at Seedrs, noted that companies that raise 60% of their target in the first week of their campaign have more than an 80% chance of being successfully funded.
That means that you’ll want to create a buzz around your crowdfunding campaign before it goes live so that people are ready to pounce on the opportunity to support you when it does. Consider all the ways that you can reach out to people and what materials you’ll need – including press kits, email templates, and social-media strategies.