No matter whether you are an activist or innovator, artist or programmer, crowdfunding might be for you! Crowdfunding is a wonderful way to use your social network to generate capital from investors in order to transform an idea into an impactful business or project. In this article, you will discover twelve tips from the incredibly informative speaker and crowdfunding expert, Jason Best. Soon, any entrepreneur will be equipped with the knowledge necessary to begin a successful crowdfunding campaign!
Jason Best is an expert on crowdfunding and entrepreneurship, having co-founded Crowdfund Capital Advisors where he co-authored a key piece of legislation within the influential JOBS Act, co-founded a crowdfunding industry trade group, co-authored the Crowdfund Investing for Dummies book, and spoken at the White House and TEDx, among his many other projects and achievements.
Below you will discover tips for success in navigating the three stages of crowdfunding that are the pre-launch activities, the live-campaign, and the post-campaign activities.
Twelve Crowdfunding Tips from Jason Best
Crowdfunding is a difficult task that will requires transparency, communication, planning, and execution throughout the three stages when working with your investors.
There are five main types of crowdfunding to consider—donations, rewards, debt, equity, and Internet Coin Offerings (ICO) or “blockchain crowdfunding”—with some types being more suitable to your project than others.
The “planning” phase is crucial to the success of your project.
There are questions to consider while determining what types of crowdfunding are suitable for your project: how much money will I need to raise? How will I use the funds I raise? What type of business do I have? What stage is my business at? What is the growth potential for my business? What is the risk profile of my investors?
Study at least ten crowdfunding campaigns like yours in terms of industry, type of funding, etc. to see what you can learn from them!
A social network is critical to crowdfunding. A key question to ask yourself is how you grow your social network to be more active and engaging.
Build your social networks, both offline and online, by giving (offering advice, information, expertise) before asking.
Be sure to make a high quality video that communicates clearly and directly.
Use the pre-launch phase to increase funds from close friends and family members before you ask investors for funding during the actual campaign phase—no one wants to be the first to donate.
Creatively use social media, blogs, meet-ups, etc. to convey information, expertise, and asks for donations, so that you’re not simply asking potential investors for funding.
After you have reached your campaign goal, be sure to do what you claimed you would do during the campaign, establish expectations for how frequently you will communicate, and be sure to show your investors what you’re working on (like prototypes).
If your campaign fails to reach its goal, you will want to thank your investors. Further, you can reflect on what you learned throughout the process and examine benefits your project has gained, such as new customers or media exposure.
To discover more detailed explanations and answers to questions other entrepreneurs like you may have, be sure to check out the full video:
ABOUT THE AUTHOR
Anna Deen is a student at Washington University in St. Louis studying English Literature, American Culture Studies, and Communication Design. In her free time, she enjoys hiking in the mountains, going to art museums, and eating ice cream.