Crowdfunding has become a highly popular and effective method for startups to earn funding. Platforms such as Kickstarter and Indiegogo have made raising money for new businesses more attainable than ever by taking the process to an entertaining digital format.
Soliciting business loans and venture-capital investors still undoubtedly play a major role in the startup world today. However, crowdfunding has merely given more ambitious entrepreneurs a risk-free opportunity to present their product to the masses and start growing their brand through an online campaign.
Services like Kickstarter support all types of creative endeavors: Books, fashion, tech ideas and albums can be found campaigning on the site everyday. These creators post a fundraiser goal and timeline on their page then ideally receive funding from “backers.”
The risk-free aspect of Kickstarter is due to the fact that backers don’t get charged for their donations if the project goal is not met in time. This also serves as a motivational tool for creators to promote their campaign and market strategically.
For the Los Angeles-based creators of Freecube, the world’s first modular tech command center, their Kickstarter campaign is something all startups can aspire for. With weeks to go before the end of their campaign, Freecube has exceeded their $15,000 goal for various reasons.
First off, let it be known that it doesn’t hurt to have a groundbreaking concept to begin with. This all-in-one digital cube couldn’t have hit the market at a better time, and the team at Avatar Controls is well aware of that.
None of the amazing features of Freecube would be recognized without a clean and focused marketing strategy. By acknowledging the iPhone 8 and iPhone X user tech-savvy demographic, they were able to build hype around the product by offering it at discounted prices to their backers.
The same concept applies to Heelight, the world’s first smart light bulb that can hear the environment. Kickstarter has been a fruitful platform for their introduction to the tech industry, and soon homes, restaurants and clubs will be filled with soundwave-detecting lights for an organically stimulating ambiance.
Don’t be discouraged if your initial crowdfunding attempt doesn’t reach your goal. Take this opportunity to revise all aspects of your campaign – from the videos, photos and web copy; everything should be fine-tuned to represent your brand accurately.
Take the Anthouse Pet Companion Robot for example. With such an obscure concept, their campaign took more than one try to truly define and sell the product to the right audience. This is a common scenario for new and original designs, but putting your work in the public eye is equally constructive as it is intimidating.
One failed Kickstarter campaign is no reason to lose faith, especially when you have such a unique product to bring to the market. This is simply a time to reconsider your marketing approach and spread the word about your campaign through your personal network and reach out to any prominent media connections you might have.
There are multiple crowdfunding sites available for you and your company to take advantage of. While Kickstarter tends to be the most popular, Indiegogo, GoFundMe and Crowdrise have also led some great startups to entrepreneurial success.
It’s important to note that running campaigns simultaneously across more than one platform is not in your best interest. Promote one at a time and let your backers help you reach your goals before moving on.
For Jackster, a headphone adapter designed to make any headset wireless, they exceeded their Kickstarter goal significantly and plan to keep the momentum going with an Indiegogo campaign.
The purpose of this is to get fresh pairs of eyes on their product and promote through a new outlet. As so many people have expressed interest in their simple idea, they’re looking to raise even more funding to increase product development.
Consider these tips for the most fruitful crowdfunding campaign possible, and remember to look to the startup success stories or the most funded Kickstarter campaigns in your field for inspiration.
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