Launching a crowdfunding campaign requires careful preparation and a solid and agreed strategy. Improvisation and lack of strategy are the main reasons why most projects fail. The haste and anxiety of starting to raise funds can jeopardise the success of the campaign, so meticulous preparation is always a must.
We have outlined five key aspects to consider before launching any crowdfunding campaign.
1. Choose your platform carefully
It goes without saying how important it is for the success of any crowdfunding campaign to turn to a solid and professional operator. In Italy, digital platforms must be registered and are regulated by Consob. This is obviously the first thing to check!
Other factors to consider - especially if you take into account that the first task of the platform is to facilitate the meeting between innovative ideas and possible backers from a logistical and organisational point of view - are the ease with which you can set up a campaign, the support offered by the platform team and the provision of dedicated channels through to advertise your campaign.
It is also important to carefully evaluate the guarantees that the platform offers from an economic point of view. Most operators, for example, require the payment of a fee for the capital raised online: the nature and consistency of this fee affects the final result and it is a significant discriminating factor in the choice of what platform to use. Beware, not all platforms allow the return of the amount raised in case the campaign is not successful.
Finally, it is important to check whether your company meets the legal requirements to be able to raise capital through the platform.
2meet2biz.com targets start-ups, scale-ups and SMEs with innovative development projects. We support European companies seeking capital to finance product and service development, internationalisation projects, acquisitions (growth by acquisitions), business development (including securities development). Our audience consists of institutional investors, professional investors, High Net Worth Individuals, serial entrepreneurs and retail investors with a minimum spending capacity of €10,000 per investment. The profile of the investors is fundamental to be able to subsequently access the relationships and expertise that this high-profile network can provide.
2. Planning a careful strategy
One of the most important and determining factors for the success of crowdfunding is the strategy with which you intend to manage and promote your campaign. An effective strategic plan takes into account the tools offered by the platform and the resources available to define the general line on which all the subsequent points will be built, from content to promotional activities.
In collaboration with the platform, the primary target of the campaign should be defined at this stage, identifying the groups of users potentially interested in funding your project. The strategy should then be transformed into a timeline that includes the pre-launch, the entire fundraising period and the phase after the conclusion of the campaign.
It can be useful to create a timeline of all the activities that need to be carried out (press releases, blog posts, social media posts, events, advertising campaigns, agreements and partnerships) so that you can monitor the results in real time and see if the campaign is progressing as expected and when 100 per cent funding will be achieved.
3. Build a community around the project
To attract the attention of potential investors, it is essential to create anticipation and interest by promoting the campaign within your main communication channels.
One idea that is undoubtedly a winner is to create and promote a specific landing page to share information with your users, create curiosity and set up a countdown to the online release of the crowdfunding campaign. The interest generated by this page can also be a useful tool for measuring the actual interest of the market in the proposed project.
Publicising the page on social media is a good idea to spread the message quickly and inexpensively. In the social world, it is not just the number of followers that counts. Building a community strongly engaged with the project is just as important.
4. Tell your story
An indispensable tool for obtaining online funding is storytelling. The art of telling your story in an exciting and engaging way is an important added value for any crowdfunding project.
In any form of investment, the emotional involvement in the project to be funded plays a fundamental role. Trying to interest and enthuse users is essential to achieve significant results.
In order to reach the desired amount of money, it is necessary to present your project in a clear and transparent way, explaining in particular where the capital raised online will be invested.
5. Define the economic objective to be achieved and the duration of the campaign
Every campaign, every team and every situation is unique, there is no one-size-fits-all formula. A good starting point is to take into account the expenses to be incurred and to define a minimum and a maximum budget. The expenses to be considered are, above all, the costs of preparing the campaign (video, graphics and content), consultancy costs, advertising costs and commissions to be paid to the crowdfunding platform.
In order to achieve maximum results, it is also essential to set the ideal duration for your campaign: most successful campaigns last around 30-35 days. It is essential to calculate the strategic timing for the launch, set up all communication activities and plan the release of the campaign in detail. Considering the proper timing needed for the design and online promotion of your project can be a crucial activity to achieve the desired results.
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