With banks and other forms of traditional funding for small businesses all but vanished, many entrepreneurs are turning to Crowdfunding to raise money for their business.
Sadly, a majority of these entrepreneurs are failing to raise the money they expected.
That’s why it was exciting to find the Kauffman Foundation teaming up with Slava Rubin, founder and CEO of Indiegogo, to present a Kauffman Sketchbook video on Crowdfunding.
In this video Rubin offers practical suggestions and insights on how to be more successful with our Crowdfunding efforts.
Here is the 3 minute Kauffman Sketchbook video, narrated by Slava Rubin:
(email readers, view video on my blog.)
Note that Rubin points our the fact that Crowdfunding is not an easy avenue to millions of dollars—raising money through Crowdfunding is hard work.
Also, if you missed it the first time, go back and take another look at the insights from Indiegogo analytics of more than 190,000 campaigns.
Here is a summary of those insights as presented on the Kauffman Foundation website:
- A campaign that reaches 25 percent of its funding goal within the first week is five times more likely to hit its target.
- Posting a campaign update every five days or less will raise four times more money than updates posted every 20 days or more.
- E-mail is the No. 1 tool for generating support for a campaign. Facebook is No. 2 and Twitter is No. 3.
- Campaigns that include a video will raise 114 percent more money than those that don’t.
- On average, successful crowdfunding efforts will hit their target on day 36 of a 47-day campaign
(To see the entire Kauffman Foundation article, click here.)
So, if you work hard enough creating a good pitch, and then promote your pitch by being proactive, you can increase your chances for success—if you are pitching to the right audience.
Yes, it is a lot of hard work, but in many cases today, Crowdfunding may be your only choice.
What has been your experience with trying to raise money through one of the Crowdfunding sites? Let us know?