When you create a crowdfunding campaign, there are many things to consider, but in particular you should pay attention to three things:
- company presentation;
- lead investors;
- marketing of the crowdfunding campaign.
When writing a company presentation, it is important to keep it simple yet interesting. Pay attention to the investment proposal by answering the question why people should invest in your company. Remember that not only a great product, but also a return on investment and an exit projection, are seen as good incentives to invest. When writing a company presentation, be sure to answer the 5 W's and the H:
Before starting your campaign, it would be advantageous if you acquired the interest of what we call 'lead investors'. These are people from your network who invest more than EUR 5,000 during the first week of your crowdfunding round. If you have such contacts, you should send us the list with the names of this people BEFORE you launch the campaign. We will charge a lower success fee on the investments from this group and we expect a maximum of 10 names. Having lead investors on your side from the beginning sends a strong, positive signal to the potential crowd investors and increase your chances to get funding. Historically we have seen that campaigns that open on our platform with at least 30% of their funding goal secured have a higher success rate than those that open on 0%.
Marketing the campaign
Being active is key in crowdfunding. You need to make sure that people know about your campaign! FundedByMe recommends entrepreneurs to have a marketing plan for all 45 days of the crowdfunding period. The purpose with this marketing plan is to create as much traction as possible, especially during the first week because catching momentum is very important in crowdfunding.
While creating a crowdfunding campaign, you will receive feedback from your account manger on how you can increase your chances of succeeding. During the crowdfunding round you will receive daily emails from FundedByMe with tips and tricks on how you can promote your campaign and we also offer a range of add-on services that you can buy from us if you are having a hard time getting it done by yourself. Ask your FundedByMe business development contact for more information about these.