A Quick Guide to Crowd Funding
May 17th, 2012 | Posted by in blogs | Business strategy | Entrepreneur | Investment strategy | Uncategorized - (0 Comments)Crowd-funding sites like Kickstarter, IndieGogo and PeerBackers are the Web 2.0 way to find capital for start-up ventures. Deciding to go this route instead of the traditional personal savings, Mom and Dad, or small-business loan requires an understanding of how to use crowd-funding successfully.
46% of projects in 2011 did not reach their stated goals, according to Daniel Bortz. His article “On Crowd-Funding Sites, Age Doesn’t Matter” recently appeared on the Young Entrepreneur blog.
Bortz offers four tips for success in getting that capital. First, he recommends using video:
“Your two to three minute video should offer a description of your product or business and why it should exist. … (Kine)Paulsen suggests adding some background on how the website works, since you’ll likely share the page with friends and family who might not understand what crowd-funding entails.”
Other tips include building a fan club by getting your family and friends to back you early and spread the word; offering your backers some kind of perk—if it’s an early version of your product, they become your beta-testers; and getting feedback from successfully-funded projects before your site goes live.
We’re living in a new era of Do It Yourself. The Web brings the inventors and investors together.
Laura Abrahamsen, May 17, 2012
