According to Technavio’s report on global crowdfunding market, it is expected to grow at a CAGR of around 17% between 2017 and 2021.
The media will most likely not write about your crowdfunding campaign during the pre-launch phase, as there is nothing noteworthy to say about it at this point. However, it is never too early to create a media kit, detailing your company and product, to send to them for their own information.
Aligning your crowdfunding campaign launches with PR activity is a key tip for success. Your PR team can secure interest in the trial product or service units with relevant media for reviewing and let their readers know about it after the launch. PRs could also include pitching interviews around your reasons for raising funds if review units are not yet available.
Be socially active:
Make sure you are socially active. Ensure that you regularly update to investors on your campaign’s progress and always share news and milestones reached. If interested, they are likely to share the news and help market your new product or service on your behalf.
Also, make your crowdfunding campaign easily shareable via social media. Think of your investors as influencers. If they like your idea, they are more likely to share it along who in turn may do so too.
Make your product or service as enticing as possible. To capture the attention of potential investors, the campaign should have a short and snappy sales pitch and some standout images or great video content related to your idea.
Offer good rewards for investment as the amount people choose to invest will be higher if you are giving them more for their money. Good options for reward are to give investors early access to the product or service, discounts and extra goodies that will encourage them as they’re getting something real and worthwhile in exchange for their money.
Be flexible and crystal clear:
Some people will only want to invest a small amount though, so be sure to offer a range of investment levels to choose from and not just one amount.
Be confident that the amount you are asking for is enough for you to grow the business and deliver the promised return to investors.
Through Equity-Based Crowdfunding, where you are selling a share of your business to investors, make it crystal clear that you control and run the business even after you’ve reached your target. Investors who own shares may expect to have a say in how the business is run or in the development of the new product or service, which can hold up delivery.