Before you jump head-first into crowdfunding, it is important determine whether your start-up business is ready to tackle a crowdfund campaign to reach your funding goal. Below are a few considerations:
Is your idea new and exciting?
Crowdfund investors are typically looking for an innovative idea that excites them. Thus, you must be prepared to explain features and benefits of your idea that have not been seen before. You may want to search Crowdfunding websites to see what projects have been successfully funded. You can learn from their videos, description layout or rewards. You may even want to contact the other creators and ask for their advice. Additionally, remember investors need a reason to fund you – not just your idea.
Do you have a story?
Investors are interested in why you are doing what you are doing and how you got started. If you have had to face a struggle to get where you are, share it with them and let them feel like they are helping you achieve your dream. The more connected a backer feels to you, the more likely you will get their investment.
What is your product?
If your concept is a tangible product, show it off. Investors love being able to see and share new products. Many backers do not want to wait several months to see the final version. As with most things in life, we like instant gratification.
What is your social network?
It is important to use every outlet you have available to get the word out about your campaign. This includes sharing your message with family, friends, co-workers, followers on social media websites, and asking them to pass it along. The more you promote your campaign, the more likely it is to succeed.
Eckerle Law offers legal advice in a variety of transactional and regulatory matters and serves companies’ plenary business law needs. Its founder, Bettina Eckerle, is a veteran of Debevoise & Plimpton and Wachtell, Lipton, Rosen & Katz. She also served as the General Counsel of two companies en route to IPO. Please visit the Eckerle Law website for more details.