Trevor Loke: Co-founder, Weeve; Vancouver Park Board commissioner
Regardless of whether you are a for-profit or non-profit organization, all aspects of fundraising are social; however, traditional tools in fundraising have largely been a one-way conversation from an organization to its supporters. Fundraising is social and requires a relationship, and no other tool helps to better capitalize on the power of social relationships than crowdfunding platforms. Crowdfunding is a game-changer, and if you haven’t looked at crowdfunding a project for your organization, then it’s time you get on board.
The landscape of crowdfunding has changed vastly in just a few short years. We have seen over 600 crowdfunding platforms emerge around the world, each with a slightly different network, purpose and structure. The fundamentals are generally the same among all platforms, with most providing a page to make a pitch (generally with a video, infographic and other audio-visual content) and tools to donate and share the content quickly to networks in hopes that it will spread to others like wildfire. When done right, crowdfunding can open many doors for your organization, and when done wrong it can be a drain on your time and precious dollars.
The key to success is in recognizing your audience, having a clear call to action and making your pitch highly social in nature so that people are drawn to share your content with others. Failure occurs when organizations don't recognize the social aspects of crowdfunding and believe that people will magically stumble across their page and donate. Dream on. Crowdfunding requires work, but it will pay huge dividends by bringing in new supporters, clients and donors who can develop long-term relationships with your organization.
Liz Dickinson: Founder and CEO, Physi-cal Enterprises Inc.
Crowdfunding is one of the most exciting routes by which entrepreneurs can access capital. It has few, if any, downsides, and you are not required to give up any equity in your company. In many ways, it is like getting pre-orders for your idea. At launch, use a professional PR agency. Half of your pledges will come from the crowdfunding site itself, but you will need to find the balance. Have prototypes of your product or descriptions of your idea ready for the press to review as soon as your campaign kicks off so you can maximize your press campaign.
The keys to success are:
•Present professionally. Use high-quality graphics and well-written content, and be confident.
•Ensure your video is inspirational. It should be motivational, describing a clear need and how your idea will fulfill that need and make a serious difference to people.
•Construct rewards wisely. Create levels for those who just want to chip in a few dollars to be part of the dream, up to big sponsorships that might attract potential distributors or investors. Create a reward level at an attractive pledge amount. This reward should lend a sense of urgency and feel like a deal.
•Line up stretch goals should you achieve your goals earlier than expected.
•Finally, stay engaged with your backers. Give informative updates often (but not too often). Be friendly and open and respond quickly.
Be prepared to maintain a one-on-one relationship with your backers. Remember they are pledging their cash over to you with nothing guaranteed in return, and they deserve the utmost respect for having done so. Stay connected and communicate.
Tony Yu: CEO, Nanotips Inc.
There are many different types of crowdfunding platforms available today, each with their selective user groups. Depending on your business, you will have to find the right platform that will effectively expose your business idea to the right target market.
Most entrepreneurs believe that their idea is flawless and end up sinking hard-earned cash into an unproven concept. Crowdfunding lets you test the market with just a prototype or a concept. If you have a great idea, the crowd base will let you know. If it isn't, you've just saved yourself a lot of cash.
Once you've launched a campaign, whether it's successful or not, you'll begin to notice the large amount of analytical data flowing through the platform. Customer feedback and analytical data can then be used to refine the product, marketing strategy and price point and provide you with the cash needed to set things in motion.
The crowdfunding platform is also a great way to gain market exposure for smaller companies without the need to spend any money on marketing. If you're lucky enough to get onto one of the larger websites or to be featured on national television, you'll end up seeing a huge jump in sales for your campaign and product, creating a snowball effect.
If you have a successful product, consumers will spread the word and media will begin to jump on board, covering your campaign or featuring your product on different platforms. Retailers and distributors will begin to contact you as they see you have a market-validated idea or product.
So I would recommend any cash-strapped business or new startup consider launching through a crowdfunding platform.
