You must have come across Facebook posts asking you to back someone’s project or Instagram popping up stories of how you can help build a product or maybe when you play games online, all by lending small amounts of money. Millions see these ads, and thousands are motivated to lend, and that’s how crowdfunding works. Find out what in this blog what crowdfunding is, how a crowdfund in London works, the best platforms to setup a crowdfunding campaign in London and how to create and market a successful campaign
In this blog we’ll explore:
- What is a crowdfund
- How to run a crowdfund campaign in London
- The benefits of crowdfunding in London
- Why choose Drop Studio
What is a crowdfund
Okay, now imagine an eBay-type website for investing and donating where you could login and browse causes and businesses, and find an “investment” that appeals to you. You could contribute a small amount, become part of a community, and over time see the impact of your donation or investment.
Crowdfunding, at its essence, is exactly that. Connecting “crowds” directly to those who need funds. Crowdfunding websites offer a hassle-free way to find, vet, and support companies, causes and organizations, and contribute or invest directly without a middleman.
For you as an entrepreneur, crowdfunding has a host of benefits that we’ll outline below.
How to run a crowdfunding campaign in London
Crowdfunding platforms offer companies like yours a way to raise large sums of capital from a variety of minority investors, customers or lenders in a short time frame.
Crowdfunding makes investing more personal and impactful – giving you direct access to information and opportunities that were once the exclusive domain of people “in the know” or the privileged one percent of accredited investors.
When running a crowdfund campaign, people need to know who you are. Tell potential backers about yourself and your experience. Make it personal. Don’t sell a sob story, but share your passion. Why you do what you do also matters. Describe how & why you came up with your idea, the current state of your product or business, why your product matters to you and why it will matter to your target audience.
Why do you need support? Explain why you’re raising money via crowdfunding and how that money will be spent. Make sure to include a direct ask for support. Most people seeing your campaign have already decided against backing you. It’s up to you to convince them otherwise.
Aside from all the above, you need properly written copy, social proof and if possible, videos and product shots. Drop Studio can help you with that.
The benefits of crowdfunding in London
Crowdfunding sites like Crowdcube & Seedrs offer you a place to host your campaign, usually in exchange for a percentage of the money raised. Backers are given various “rewards” based on the level of funding they provide.
So, Drop Studio has helped you create an amazing crowdfund campaign and you’re all set. But your question is why? Why should your business go this funding route over others? Crowdfunding has a host of benefits.
- Raises money quicker: With the right crowdfunding platform, team and ample promotion, your crowdfunding campaign has the potential to raise quite a lot of money in a very short amount of time. In fact, many campaigns reach their goal in just over a month.
- Raises awareness and publicity: Crowdfunding can help you spread the word about an injustice, problem, disease, or social issue while you raise money. It’s an effective way to educate your peers. The more people you know, the more willing they’ll be to give!
- Creates a community: People love to come together under one common cause. In this case, helping your business grow. It gives them a sense of purpose and empowers them to raise money for something they care about. Crowdfunding brings people together for just that.
Crowdfunding is a great way of unlocking the funding you need for growth that otherwise might be difficult to attain. Instead of relying on a bank or scrimping and saving for years, you can use your community connections to reach your next step.
Why choose Drop Studio
You need to create a crowdfund in London & we’ve worked with a host of the world’s biggest brands. You’re looking to raise funds publicly through crowdfunding on Crowdcube, Seedrs, Kickstarter or Indiegogo, and we’re looking to help you on this journey.
Our Fundraising Accelerator can help you plan, manage and optimise your campaign. We assist ambitious businesses like yours in all sectors, helping you to communicate with potential investors and portray your business in the best possible light. With our flexible and comprehensive services, there has never been a better time to get in touch to discuss your fundraising goals!
With more than £43m raised, our Fundraising Accelerator services provide you with everything you need to run an extremely successful fundraising campaign. Whether you are looking for one or two investors to raise funds privately, or looking to reach the masses and crowdfund, Drop Studio is experienced in both.