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What makes a successful crowdfunding campaign?

Online investment websites can raise millions, but offline spadework is needed first.

One of the most important things to remember when using a crowdfunding platform to raise growth capital is that your job (as the business owner) doesn’t end the second your pitch goes live.

Interestingly, that’s not when your job should just be starting, either.

Our CEO, Norm Peterson, was recently featured in this article in The Sunday Times, alongside a number of industry leaders, including chairwoman of the UKFCA, Julia Groves.

Key points:

  • Start building a network of supporters at least 6 months prior to launching your fundraising campaign.
  • Plan your entire marketing strategy and begin implementation before going live.
  • Focus on raising brand awareness so that people trust your business, team, and product or service so that they feel encouraged to invest.
  • Strangers are reluctant to invest in a pitch which is sitting at 0% funded – you need to mobilise your own network first.
  • The article highlights the “misconception that crowdfunding is an easy way of raising money”; running a crowdfunding campaign of any type (equity or otherwise) is a project in itself. You need to be hands-on and involved every step of the way.
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All in a name…

There have been a number of well-known faces who’ve turned to crowdfunding platforms in order to raise money for their venture.

For example, Kevin McCloud, Kristen Bell, Neil Young, and Sir Stelios Haji-Iannou have all held hugely-successful campaigns. Whilst their campaigns may have garnered attention simply because of their fame and recognisability, all worked hard to encourage people to get involved.

They did this by making sure they were visible throughout the duration of the campaign (as well as in the lead up) via social media, news appearances, and interviews.

Even these celebrities couldn’t count on their names alone being enough to ensure they hit their fundraising targets, which shows just how hard everyone needs to work when conducting a crowdfunding campaign. Crowdfunding is not an easy route to take.

Remember – you’ll get out of a campaign, what you put in. The more time, energy, and effort you put in, the more likely you are to get the results you want.

Only fools rush in

Plan your strategy. Spend time gradually growing a strong social media following and you may find yourself with a large audience of potential customers, brand ambassadors, or online investors. The crowd will be more likely to be behind you if you take your time with them, showing them why they should believe in your business and be excited about what you have to offer.

You can read the article in full by clicking here.

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Growth Capital Ventures (GCV) is backed by funds managed by Maven Capital Partners, one of the UK’s leading private equity and alternative asset managers.