As many of you probably know, crowdfunding is a relatively young industry. (Fun Fact: Kapipal was one of the first crowdfunding platforms starting way back in 2009!) But what it lacks in years, it makes up for in funding. Studies estimate that in 2015 the crowdfunding industry surpassed over $35 billion in funds generated. These numbers are expected to increase with each year, so it is no wonder why innovative start-up companies are now incorporating crowdfunding within their investment strategy.
Yet after interviewing a wide variety of start-ups, we discovered that the attractiveness of crowdfunding isn’t entirely related to money. Below, we list some of the less obvious reasons why many start-up companies are utilizing crowdfunding.
Personal Connections with Their Consumer Base
After our interviews were complete, the Kapipal team was stunned (well, sort of J) by the fact that every single start-up company loved how crowdfunding provided an intimate connection with their consumer base. While the details of these connections different for each start-up, the general consensus was that crowdfunding with Kapipal provided the unique opportunity to get direct, immediate feedback from their audience.
One example of this was that through a crowdfunding campaign, a start-up company literally made slight alterations to their product based on direct suggestions from campaign supporters. So not only did the company release a better product, but the consumer received the exact product that they would be interested in. Talk about personalization!
More Creative Freedom
In the traditional funding format, start-ups seek out investors who will provide them with large amounts of money. The investor does this with the assumption that in the long run, they will earn more money than they initially invested.
As you can imagine, this process places quite a heavy burden on the start-up company to make money. Obviously there is nothing wrong with making money, but when that is the absolute goal, then both the product and creativity must be mere secondary concerns.
Crowdfunding completely erases this burden, as start-ups no longer need to rely on the traditional investing structure. By generating funds via online crowdfunding platforms, companies now have the opportunities to be creative by testing a wide variety of products without having to worry about owing any huge investment firm money.
A phrase that we kept hearing over and over from start-ups was, “Kapipal provides us the opportunity to test, and then test again.” One marketing manager even noted that Kapipal “provides the opportunity for us to test and see not only what our audience would want to buy, but what they are passionate about, which are entirely two different things. And from a marketing perspective, the more we can understand our audience’s passions, the better products we can create for them.”
That wraps it up for now, but we will be conducting more interviews – with everyone from individuals seeking a dream vacation to more revolutionary start-up companies – so continue to check our blog and social media accounts to stay up to date on the latest news.
Also, feel free to explore our site or become one of the millions who have started their own crowdfunding campaign. Remember, if you have any questions, you are always more than welcome to drop us a note or simply give us a shout out on Twitter.
Hope you have an amazing weekend!
In our initial post, we listed three essential components for creating successful crowdfunding campaigns. Having received such positive feedback, we decided to flesh out these three components even further with a three-part series (i.e. one blog per component). Our first post covered the favorable practice of providing transparent and accurate information. Our second post provided tips regarding sharing your crowdfunding campaign over social media. This final post of the series will discuss essentials for providing a variety of appealing content.
Why is Engaging Content Necessary?
Before we discuss the essentials, it is important to understand why engaging content is necessary. Basically, engaging content is crucial due to its viral potential. The more appealing the content, the more likely a viewer is to connect and share.
In the past, the most successful campaigns have supplied a wide variety of appealing content on their campaign page. Generally, these campaign creators have utilized texts, image, and video posts to inform potential contributors about their project. The variety is particularly important as it connects with potential contributors on on a multitude of levels.
Okay, I Understand. . . But What Kind of Content is Engaging?
Great question. Considering that appropriate content largely depends upon the campaign and audience, it is generally best to put ourselves in the mind of potential contributors and ask:
Furthermore, we will also want to think about viral potential by consider factors that could inspire our audience to share with their own social network. Examples may include:
By providing appropriate, engaging content, we can be sure that we’ve increased our campaigns chances of being shared. Remember, one of the main essentials for reaching donation goals is to have campaigns seen by as many fresh eyes as possible.
If you are having trouble generating content ideas, or simply have a general concern, don’t hesitate to contact us! Our passion is assisting others in funding their dreams, so we would love to offer some assistance.
We really hope this series has offered some assistance. If you have any immediate questions, feel free to leave a comment. We would love to start a conversation – perhaps your question is also on the mind of others Also, check our site for even more helpful content in the coming weeks!
In our previous post, we listed three essential components for creating successful crowdfunding campaigns. Having received such positive feedback, we decided to flesh out these three components even further with a three-part series (i.e. one blog per component). This first post will cover the favorable practice of providing transparent and accurate information.
The Importance of Transparency
When establishing a crowdfunding campaign, it is extremely important to create trust amongst potential contributors. One of the easiest way to do this is by providing transparent, easy-to-find information. For example, if a potential contributor is exploring your campaign site yet has trouble finding answers to their questions, then they will be far less likely to contribute to your project. Therefore, it is wise to consider the type of answers potential contributors may be looking for while exploring your campaign.
Although providing easy-to-find information might seem intuitive, campaign creators can struggle with this if they don’t keep their entire audience in mind. Take, for instance, a band that is seeking to generate funds to record a new album. When creating their campaign, they might provide information targeting their current fan base (which is very smart), but fail to consider those potential contributors who are unfamiliar with their music. Having just come across this band, these visitors will seek to answer some basic questions such as: What is the story behind this band? Or, what does their music sound like?
By providing thorough, transparent information, this band can not only build trust amongst their own fans, but also new listeners as well (and maybe even gain a bunch of new fans in the process!)
But Is All of the Information Clear and Accurate?
So, now that you have filled your campaign page with easy-to-find answers, it is time to go back and double check to make sure that all the information provided is both clear and 100% accurate.
In regards to accuracy, you will certainly want to be sure that you are spelling and labeling everything correctly. Furthermore, if you are listing specifics – such as dates or locations – you will want to double check and make sure that those are accurate as well.
When it comes to clarity, it would be wise to once again consider your potential visitors. For example, whether campaigns are created to assist with medical bills or create innovative products, you will want to provide potential campaign creators with as simple of information as possible.
To help with this, we recommend walking potential contributors through the process (ex. Medical Bills: how did this emergency come about? Explain medical terms, etc.; Innovative products: explain the technology or science behind your products; walk your audience through the creation process, etc.). Granted, this doesn’t necessarily need to be long, but providing a clear, in-depth explanation of your campaign establishes a sense of connection through education. By clearly articulating your motives for your project, potential contributors will feel more involved and thus be far more likely to help you with your campaign.
If you are interested in seeking more assistance, or have a crowdfunding question that you would like answered, please do not hesitate to contact us. Otherwise, explore Kapipal and see how you can turn your dream into a reality today.
Being the first European donation and reward based crowdfunding website, we at Kapipal are extremely passionate about helping others fund their dreams. Therefore, we are now offering personal assistance for campaign creators to succeed with their projects.
But first, before linking to our personal contact page, we thought it might be helpful to offer some campaign tips. Generally, successful crowdfunding campaigns consist of the following practices:
Providing Transparent and Accurate Information
Honest, easy to find information is essential for creating trust amongst potential contributors. For example, those viewing your campaign page will want to know accurate, extensive details about your project. Furthermore, they will also want an honest representation of contribution perks. If any of this information is vague or difficult to find or understand, then you may run the risk of scaring off those who actually may be quite interested in assisting and contributing to your campaign.
Sharing Over Social Media
With Facebook recently surpassing over one billion users, it is certainly fair to say that the reach and power of social media is at an unprecedented level. With successful projects, campaign creators have been able to leverage social media to spark awareness, interest, and contribution to their campaigns.
For prime success, we highly recommend planning out a social media campaign that utilizes a variety of social media platforms (i.e. Facebook, Twitter, Instagram, Pinterest). Feel free to get creative here, for you will want to generate as much buzz (shares, retweets, likes, etc.) as possible!
Supply a Variety of Engaging Content
Campaign creators should look to supply a wide variety of engaging content on their campaign page. In the past, successful campaigns have incorporated text, photos, and videos to inform potential contributors about their project. Variety is key here, as you will want to inform and engage potential contributors on as many levels as possible.
If you are having trouble generating ideas for content, perhaps it might be helpful to put yourselves in the mind of potential contributors and ask yourself: What do they need to know about your project? Why should they contribute? What makes my project interesting and unique? What is the quickest, simplest way to provide this information?
By focusing on providing accurate information, utilizing social media, and supplying a variety of content, campaign creators can be confident that they are on the right path to succeeding with their project.
Yet if you are still unsure, or feel as though you need personal assistance, please do not hesitate to contact us. We want to do whatever we can to assist you in successfully funding your projects and turning your dreams into reality.
So why wait? Click here to start a new project today!
Since working at Kapipal, I have seen many crowdfunding projects -- charities, hobbies, startup ideas, music albums, community efforts, gifts, etc. It is amazing to see so many innovative fundraising campaigns.
Many people use the crowdfunding approach to realize their dreams! But the power of crowdfunding does not stop here. The crowdfunding process has helped many people in a short period of time to improve their product ideas, create branding, improve marketing, as well as generate market demand intensively.
A typical example is a band raising money for their next album before production. The audience and fans get a flavor of the new album through the campaign introduction, audio or video. It helps the band to generate market interests, get early feedback from their fans, as well as increase the fans' eagerness to get the album produced by crowdfunding contribution. In a way, the band has already tested the market and created product awareness and demand before completing and shipping out their final product.
This is a very good way to exercise the lean development method for testing out the idea with the launch, learn and adapt process. Even with every social marketing promotion round, it follows the same pattern: launch-learn-adapt to understand what works, what doesn't, and how to improve the promotion to get to the next level. It is a journey of continuous learning. When the crowdfunding campaign finishes, the fundraiser not only has more experience in running a crowdfunding campaign, but surely also much more knowledge on social media marketing and lean product development.
If you want to start a crowdfunding campaign for your dream, our Kapipal Team would be happy to support you on your journey!
This is the official blog of Kapipal. Check back often for updates on what's new at Kapipal, as well as ways to make your campaign shine! As always, we value your feedback, so please don't be shy — comments are encouraged!