Published on August 12th, 2013 | by Jose Vasquez2
8 Tips for Successful Crowdfunding in Startup Tech Companies
Startups everywhere are becoming increasingly reliant on crowdfunding to generate capital, but in order to be successful you’ll have to follow a few best practices.
Crowdfunding is often hailed as the investment process of the future. Instead of limiting potential entrepreneurs based on their geographic location, ability to persuade wealthy investors, or access to resources, crowdfunding allows even the simplest ideas a chance at collected funding.
By following my eight practical tips for successful crowdfunding, you can make the most of your funding efforts as a startup tech entrepreneur:
- Keep it Simple. On most crowdfunding platforms, people won’t tolerate reading excessively written business plans or rambling paragraphs of useless information. Keep your post and everything about your post as concise and as straightforward as possible. You want it to be fast, catchy, and memorable.
- Set a Reasonable Goal. Don’t set your goal too high or people won’t want to contribute. Don’t set your goal too low or you’ll burn yourself. Look at what similar companies have requested successfully in the past and model your own request on that.
- Introduce Yourself. People like to see other people. Upload a video of yourself giving an elevator pitch on your technology, or a picture at the very least. Make it personal by getting in the mix yourself.
- Solve a Problem. Instead of focusing on your business, focus on your solution. Identify a problem that everybody faces and explain why your technology can solve it.
- Start Conversations. Get people talking, on your crowdfunding platform of choice and other platforms. Ask questions about the problem you’re solving or just get in the mix with a little fun.
- Spread Links. Use social media, blogs, and other applications to spread the word about your product, and always link back to your main crowdfunding page.
- Offer Rewards. At different donation levels, offer rewards for your contributors. This can be anything from a simple thank-you message to a completely free copy of your tech product.
- Be Grateful. Always express gratitude for the opportunity and for the contributions. It will put you in a better position with the community and encourage a higher following when your business takes off.
With these best practices in tow, you’ll be far more likely to hit your capital goals and get the money you need to build momentum in your startup tech company.