Crowdfunding campaigns, when run well, can seem effortless, almost magical, if you’re watching from afar. Seeing the money and backers pile up, especially in the last phase of a campaign, can be breathtaking, when everyone is hugging and high-fiving.
However, crowdfunding is not a walk in the park. Unless that park is covered with broken glass. And a lion ate your shoes at the entrance gate. And he is now chasing you.
There is anxiety, especially during that famous mid-campaign plateau. There are sleepless nights, when instead of counting fluffy sheep you’re counting all of your Facebook friends who haven’t contributed yet. And don’t forget about the obsessive-compulsive “refreshing” of your campaign page to see if there are any new backers. Yes, crowdfunding can be stressful, but if you do the proper prep work — and create the right relationships on social media — crowdfunding can be full of great joy and excitement.
Below are some important tips before kicking off your crowdfunding campiagn.
Until recently, financing a business, project or venture involved asking a few people for large sums of money. Crowdfunding switches this idea around, using the internet to talk to thousands – if not millions – of potential funders. Typically, those seeking funds will set up a profile of their project on a website such as those run by our members. They can then use social media, alongside traditional networks of friends, family and work aquaintances, to raise money. There are three different types of crowdfunding: donation, debt and equity.
Do you need to raise funds to get your idea off the ground?
You’ve got a brilliant business idea, but your bank lacks your vision. (Or perhaps you lack the collateral.)
Maybe you reached out to friends and family, but you know they lost their shirts when your brother-in-law’s salmon-flavored energy drink flopped. Is this the death of your nascent business?
When a startup gets handed that first big check, how much of that can they dedicate to their own livelihoods?
From the media you would belive that founders of every tech startup thats been funded are all millionaires and billionaires. But thats not allways true.
Most entrepreneurs dream of taking an idea and turning it into a successful company, but that takes time and capital investment. Most startups don’t get funded by venture capital or angel investors; the money often comes from your savings, credit cards or friends. Because initial cash flow may be tight, you need to keep your budget realistic in order to stretch every dollar. That's where bootstrapping comes in.
Crowdfunding campaigns with video are more likely to attract and raise funds than campaigns without video. People are conditioned to respond to television commercials and stories they can relate to emotionally and from a multimedia perspective.
Campaigns can be very short (as short as a day!) or stretch out over two or three months, but fundedflow, Kickstarter and other crowdfunding platforms suggests that 30-90 days is the perfect length for a campaign.
That said, for a considerably-sized campaign of $30,000 and above, you might want to plan to spend at least one month ahead of time preparing. Then, once the campaign begins, set aside four to five hours a day to run and manage it. The biggest mistake you could make is to go live expecting money to pour in on its own. Fundraising takes time, and effort to make it work.
The following crowdfunding press release template has been developed by fundedflow for you to use as a guide for writing your own press release, for your crowdfunding campaign. Feel free to copy and paste this into your own text editor and use as you like.
Sample Crowdfunding Press Release
Gaming Startup Weststar Media Partners Sets To Raise US$ 100,000 through Crowdfunding Platform Fundedflow
By Brian Cohen
April 10, 2014
San Jose, CA – New Startup Weststar Media partners announced today that it will be launching a seed round funding campaign using the crowdfunding platform fundedflow.com effective April 21, 2014. The company is targeting to raise up to US$ 100,000 to launch its brand new gaming app utility on the apple iphone, ipad and android in the next 3 months. Company CEO Bryce Knight gave a webinar last week telling entrepreneurs in the gaming community about the apps innovative technology that is set to change how gamers network and multiplayers conect online.
Weststar expect to grow investor confidence and widen its customer base. In addition to ipad and iphone games, Weststar also will now also be developing for the android and windows based systems. When asked why the company decided to go with crowdfunding, Bryce Knight was quoted as saying “we decided to use crowdfunding as individuals are able to effectively make a decision about what they want before a product is developed, this type of commitment is the foundation of how we are building our business as an on demand services”.
Crowdfunding has gone on to be one of the faster ways to launch a company and earlier this year creative crowdfunding platform kickstarter announced they had hit the US$ 1 Billion mark through crowdfunded projects.More information is expected to be released following a shareholders meeting later this month.
About Weststar Media Partners
Weststar was set up San Jose at the end of 2013 and is owned by Bryce and Jean Knight. It has enjoyed early success with the free prototype game called rollerblase, which was released on the apple iphone and ipad in January this year, the free game received an astounding total of over 1 million downloads in under one month, making it the hottest game of the year. The company is now seeking crowdfunding to expand and intends to hire 6 full time developers and a sales distribution manager.
For more information, please visit http://www.Weststar.com
To learn more about this merger, please contact
By Brian Cohen
1246 NE Sandy Blvd. Ste. 210A
Office: (503) 867-5309
Fax: (503) 867-5408
What are the best tips for running a successful crowdfunding campaign for startups using www.fundedflow.com, kickstarter, indiegogo or any other crowdfunding platform
1 Put in the Required Hours
Common failure of crowdfunding campaigns is that project creators often don't realize the intense amount of work required throughout the campaign to make it successful. You will be talking, emailing, pitching, tweeting and posting all day, every day. If managing your crowdfunding campaign doesn't become your full-time job throughout the campaign, then its odds of success decrease dramatically.
The crowdfunding industry is hitting its stride. Kickstarter announced recently it has topped $1 billion in pledges for its rewards-based opportunities, and peer-to-peer lending leader Lending Club is preparing for its IPO.
The potential impacts of crowdfunding on the economy and entrepreneurship are staggering. But while rewards-based crowdfunding provides the lowest cost capital a company can raise, not everyone is a winner in this finance model. As Korstiaan Zandvliet, founder of Dutch crowdfunding platform, Symbid said: ”Isn’t it a shame that some of the companies funded through [rewards-based] forms of crowdfunding will go on to make large profits, and all you ever got was a t-shirt?”