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Lessons From Super Successful Crowdfunding Campaigns

Lessons From Super Successful Crowdfunding Campaigns

As a means of raising capital for a new venture, crowdfunding can produce spectacular results. One of the most famous examples is the incredible $3,335,355 raised on Kickstarter in 2012 by Tim Schafer's Double Fine Productions for a 2D graphic adventure game, Double Fine Adventure (later known as Broken Age). The pitch attracted investment from 87,140 backers and reached its initial target of $400,000 in only eight hours.

If you’re seeking investment for your business idea through a crowdfunding platform, you might not hit such staggering heights – and chances are you won’t need to. But you can still draw inspiration from the biggest crowdfunding success stories and learn from the founders who have managed to exceed all expectations by creating compelling business propositions and powerful pitches.

The first thing you need is a great business idea. Presumably, you’re confident you’ve ticked that box already – otherwise you wouldn’t be launching a startup in the first place. However, while you might be confident of your venture’s potential, you still need to convince others. The best way to do that is to back up your statements with supporting evidence. Don’t underestimate the power of a sound business plan – it’s the most effective tool for persuading investors to buy into your idea.

But it’s not enough on its own. You need to create a buzz and get people’s attention. That means presenting your proposition in the most attractive way possible. Use your pitch to convey your enthusiasm for the project. Don’t just present the facts, figures and details and expect people to respond – you need show them that the opportunity to invest is too good miss. Make use of attractive images and create a video to help explain and sell your idea.

As well as looking for evidence that your venture has the potential to provide a return on their investment, would-be backers also want an indication that your idea is a low-risk proposition. With that in mind, highlight your credentials and business achievements, along with those of your team.

Think about your target audience and try to appeal to it directly. The Double Fine Adventure campaign, for example, used the tagline “Developed by adventure fans, for adventure fans”. Make potential investors feel as though they have the chance to become part of a movement.

However, don’t make the mistake of assuming the audience for your crowdfunding pitch has special knowledge of your area of business. You need to explain everything clearly so a layperson can understand and steer clear of jargon.

Finally, to really get your campaign moving, promote your pitch outside of the crowdfunding platform. Social media can prove invaluable for drumming up interest and building momentum. Use your Twitter, Facebook and LinkedIn networks. Encourage your followers to share the information and urge all your friends and business associates to invest – even small amounts can make a big difference because investors will be much more willing to part with their money if they see a campaign is attracting interest from a number of other backers.

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