Tuesday, August 6, 2013

Crowdfunding In Canada - Tips For Raising Money

Looking for some crowdfunding investments to get your business started or expanded? This type of investing has become a viable way to collect capital that can be put to good use. As with everything in life, there is no such thing as a free ride. Here are some tips to consider when raising money through crowdfunding:

Tip #1: Show What You're Creating

Since your crowdfunding campaign will no doubt be launched online, there is no excuse not to include photos and/or videos of exactly what you plan to sell, make or provide. Even if you've created the next great "widget", make sure that you have a prototype that you can show off. Make sure your ideas are protected before you share them with your potential investors. When those money folks can see something tangible, they'll be more likely to part with their money.

Tip #2: Research Your Platform

Among crowdfunding sites, Kickstarter and Indiegogo are the most popular. These are the ones that most folks will go to first because they seem to be getting all the good press. Here in Canada, Kickstarter is getting ready to lower restrictions for more participation. Also check out Crowdfunder, RocketHub and Quirky. Spend time getting to know these sites and the community they attract. This research should help you find the right fit for your campaign.

Tip #3: Copy From Success

There are many crowdfunding success stories out there. Guess what? You can borrow from them when it comes to building your page. See what those campaigns used to attract investors. You can learn a lot from those investor comments. Was it the video that made the difference? Was it the pitch? Whatever worked, try to adapt it for your cause.

Tip #4: Build Up Some Sweet Perks

The benefit of crowdfunding is that there is no obligation for a return on that investment beyond the perks. To attract investors, you'll want to offer some goodies. The recent wildly successful "Veronica Mars Movie" Kickstarter campaign offered walk on parts in the movie, autographed scripts and interactions with the stars. All of these perks came at certain levels of investment. In other words, save the good stuff for the big bucks. Special note: Start the perks at the $25 level. This is the most common donation and a good way to get things fired up.

Tip #5: Work Outside the Crowdfunding

Just because you set up a page on Kickstarter doesn't mean your work is done. You need to get the word out about what you're trying to accomplish. There are many folks who stop by crowdfunding sites to see what’s new, however, that's not going to be enough for your needs. Think of your social media outreach. You should be using Twitter, Facebook and any other media outlet you can tap into to spread the news about your campaign.

Make it fun and watch the money roll in! 

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