How to Use Online Crowdfunding Sources to Raise Capital

 

This is a guideline of helpful tips you should always use when raising capital on one of the many crowdfunding sites:

  1. Be clear and simple- always expose your agenda and be very clear about your intention, investors do not like to give away their money to entrepreneurs who lack clarity. You should keep in mind that some of the crowd will not like what you are trying to accomplish but that’s OK, you only need  to attract a specific part of the market, even if you are dealing with big amounts of money. You only want the people that really care about your project to give you their money, as these people who will eventually bring their friends and relatives to your website/page. Along with this the PR for crowdfunding will eventually increase if done with proper planning.

 

  1. Hire an agency that specializes in Crowdfunding PR. Explain exactly how the money is going to be used by your team and what you are going to do after the project is finished. Your contributors always want to be a part of something big. Make sure your project is going to give significant value for your fans.

 

  1. Be unique- as competition increases the chances of your team to get contributors decreases, so make sure your pitch will stand up high above the rest. Use catchy slogans, vivid colors, special presentation formats, images, videos, models, and celebrities. Anything that will catch the eye of the average user and will increase the traffic to your page.

 

  1. Be professional-don’t use your smartphone to record the video, this kind of amateur attitude will get you nowhere . Invest in good recording equipment in order to get the proper video. A professional video will send the right message to the crowd.

 

  1. Be concise- remember that you are not the only one out there  trying to raise funds in the same market.  There are many talented teams in these sites. Make a 3-5 minutes video that will explain your idea in a concise way – crowd funding sites are full of brilliant ideas and people usually browse around quite a bit- no one will listen to a 20 minutes video when there are short videos just as good. Use the proper editing software to shorten your footage in a professional way and create an intensive pitch for your audience.

 

  1. Be yourself- Your audience will notice if you are trying to act as someone you are not (unless you are a really good actor) – speak casually.  Practice ahead with your friends to get comfortable. If you are extremely shy in front of the camera, just ask someone else on your team to pitch or hire a professional presenter to be your spokesperson.

 

  1. Use successful stories from your past. People will get the feeling you are likely to achieve it once again, when you are pitching a project after you have introduced your personal success history to the audience. They will listen closely to your future plans. This is not the time to be modest: explain what difficulties have you faced and how did you handled them. The audience should remember you as the hero of the day.

 

  1. Finally, believe in your project wholeheartedly and invest financially in your own projects. If you do not, you can’t expect others to invest in it.