Crowdfunding is a viable method for raising funding for a startup.

Here are some key considerations before pursuing a crowdfunding campaign:

Platform choice.

Look for the appropriate platform for your startup.

There are large platforms that are commonly used and many smaller ones that cater to niche audiences.

Look at the fees associated with the platform and their level of support for finding investors.

Most platforms provide for about 1% of the fundraising.

Marketing platforms.

Most crowdfunding campaigns require a network of 10,000 contacts or more to achieve initial success.

Look for marketing platforms that can generate more contacts at a cost-effective price.

It’s not unusual to find that social media and email marketing cost 20% or more of the fundraising.

Content creation.

Look for resources that can help generate the required content, including pitch decks, updates, digital assets, and social media posts.

Consider these steps before launching your crowdfunding campaign.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.