How can you raise money for Startups via Crowdfunding?

Crowdfunding is a popular way to raise money for your startup. These days it is becoming more popular and relevant. It seems easy: just sign up with a crowdfunding platform, list your funding needs, and click a few buttons. You will be able to raise money for your business. To raise money for your business via crowdfunding isn’t that easy one. It requires a lot of strategy and solid execution like any marketing or fundraising campaign.

How can you raise money for Startups via Crowdfunding?

Crowdfunding is a popular way to raise money for your startup. These days it is becoming more popular and relevant. It seems easy: just sign up with a crowdfunding platform, list your funding needs, and click a few buttons. You will be able to raise money for your business. To raise money for your business via crowdfunding isn’t that easy one. It requires a lot of strategy and solid execution like any marketing or fundraising campaign.

Raise money via rewards- based crowdfunding platforms

There are rewards- based crowdfunding platforms such as Indiegogo and Kickstarter. They are called reward based platforms as the people or companies who fundraise on them will provide incentives i.e. rewards to donors who donate their money to companies or worthy projects.You can post your funding needs up on a website, offer some small rewards. And, you will be on your way to a successful fundraising. However, it is not as easy as it seems. Getting thousands of people to donate to your project requires planning, attention, and execution.

Here are the following ways you can follow to raise money via crowdfunding:-

  • Set up funding goals: - You have to determine how much money you are planning to raise with your fundraising campaign. This is very crucial decision as there are many platforms functions as all or nothing fundraising. That means, if you don’t determine your fundraising goals, you will not be able to earn even single dollar.
  • Get Social: - You have to get social and not to rely on your platform of choice to bring your donors into it. There is direct link and correlation between your social networks and success in crowdfunding.
  • Develop a reward strategy: - Giving the right incentive or reward can be the main difference between hitting your funding goals, or missing them. You have to develop a specific tiers of rewards for smaller donation i.e. $5-$50 and larger ones i.e. more than $50. Explore the things which are affecting your donors and figure out what is going to motivate them without spending too much.
  • Post your campaign: - Prepare your materials, a crowdfunding video which is very important for successful crowdfunding, and your rewards. Post them on crowdfunding platform of your choice.

So, we have given brief description of crowdfunding and how you can raise money via crowdfunding for your startups. We hope this post will immensely help you raise money via crowdfunding.

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