Ever wondered ‘what is a crowdfunding campaign?’, well, crowdfunding is an alternative method of raising capital instead of the traditional methods of gaining capital from bank loans. When running a campaign there is normally a limit of around 30 days to obtain the funds that you have set.
The way in which capital is obtained during crowdfunding is a collective effort from a wide range of sources such as friends, family or even random individuals online. There are different types of campaigns when considering crowdfunding such as equity, rewards, and donation based.
A campaign that has proven to be successful when crowdfunding was Veeqo, who raised over £1 million over a few days.
What is a Crowdfunding Campaign? How does it work?
A crowdfunding campaign is essentially a presentation to the thousands of people located on the platform, helping them learn more about the product or service you are looking to launch. The campaign makes it so that all the information about your business, such as its history, and helps bring it to a level that is digestible for potential investors.
The main point of a crowdfunding campaign is to give a business a reach that they have not reached before helping them increase awareness about their brand. Crowdfunding platforms such as Crowdcube or Indiegogo have thousands of potential investors on their sites, who are always looking for the next best thing to invest into. These platforms exist so that supporters can look at, interact with and share the campaign that you are raising funds for.
What is a Crowdfunding Campaign? Key Features
When running a campaign, one of the key features is that it allows you to streamline all fundraising efforts. A campaign eliminates the need of having to pursue investors individually. It allows you to present everything online in a much more accessible format, especially in the current smartphone era. Crowdfunding leaves you with more time to run your business instead of raising funds from individuals.
What is a Crowdfunding Campaign? Conclusion
In conclusion, crowdfunding campaigns are a modern way of obtaining funding and a rising alternative to taking debt finance from the banks or seeking large amounts of money from a handful of angel investors. It enables you to keep in touch with your investors and keep them updated on any product development.
Do you need personal advice on how to make your crowdfunding campaign?
We can help. Drop The Crowdfunding Studio are proud partners of Crowdcube and Indiegogo. We assist ambitious businesses in communicating their ideas, products, and services with outstanding crowdfunding video production, campaign design, crowdfunding marketing and crowdfunding PR.
To learn more about us and our services, visit our website: drop.studio
Or book a free phone workshop today and ask us anything, like how to create a successful crowdfunding campaign or how to accelerate your business from zero to fully funded.