An underwhelming response to your crowdfunding campaign could hamper the perception of your Start up’s worthiness.
“The severest test is to learn from success”.
There are ample successful crowdfunding campaigns globally. So, make the world your school to learn and imbibe relevant best practices within your campaign. To help you get started, here are 3 lessons learned from successful equity crowdfunding rounds. These projects raised more than £1 million on UK crowdfunding platforms Crowdcube and Seedrs in 2015.
Drum up interest to gather a crowd before launching the campaign
Monzo Bank had raised the pegged £1 million in 96 seconds, i.e. their offer was met in less than two minutes.
The overwhelming success could be attributed to the bank’s engagement with its customers prior to the crowdfunding campaign. They would invite their customers to the bank’s office to meet the design and product team. The customers were sought to contribute with ideas that shape the form of the business and its offering. The deeply embedded connect propelled participation at the launch of the crowdfunding campaign. To the customers, the opportunity to fund the bank seemed as a natural progression.
Thus, Monzo had built traction for the campaign much earlier than its launch.
To increase the chances of your crowdfunding campaign’s success you need to build a crowd comprising a ‘passionate tribe of fans’. This means connecting with your community of family, best associates, and friends a year before you plan to launch a crowdfunding campaign. Motivate them, excite them to support your campaign before its official launch. An overwhelming response to a crowdsourcing campaign encourages other investors.
Research and preparation are the stepping stone for success
Sugru raised £3.5 million on equity crowdfunding platform Crowdcube, surpassing the £1 million target in four days.
Suguru invested time and efforts on desk research to learn the basics of crowdfunding and avoid common mistakes. They also sought the advice of a select few comparable companies. They assigned a dedicated team for the campaign. Their plans scheduled milestone status updates and events. They assigned a dedicated team to do the heavy lifting throughout the campaign. The planning continued after the campaign to cover communication for their new 2700 new investors.
Clearly, Suguru had planned its crowdfunding campaign as it would for a product or business launch.
You should commence the planning atleast a couple of months prior to the launch. There should be enough time to run trials and test the efficacy. Put together a team to leverage the strengths of its members and then strategize. Campaigns run by teams raise more than 3x the funds than those run by individuals.
Broadcast your message as far and wide using every source possible channel and medium
Emoov had a record breaking achievement with raising £2.6million, making it CrowdCube’s largest prop-tech crowdfunding round. They did a match funded deal with CrowdCube, where they took some tube advertising. emoov also worked with their own network – customers, staff, and partners. They leveraged the promoter and the staff’s social media presence. The promoter attributed their PR skills for the success too.
Thus, emoov used an integrated media strategy, instead of just relying on Digital Media.
Use your website and Social Networking Sites prior to the launch of the campaign to amass online support. Draw the attention of journalists, bloggers, and influencers to your campaign. Maintain online activity throughout the campaign. Communicate with live feeds to update investors on the status of the campaign to hustle excitement. Use public relations by reaching out to the press, radio, and television with a story on the Start up.
A successful Crowdfunding campaign could be a combination of several factors such as product, crowd, visuals, team, transparency, and communication. However, at the core of it is: messaging and planning. So, channel all of the energy, you can muster, with a steadfast focus towards your crowdfunding campaign.