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4 Things You Need to Know Before You Launch Your Crowdfunding Campaign

Mihir Gandhi

Nowhere has the social media landscape made as dramatic an impact as on raising capital. Okay, maybe we’re biased, but the change is truly huge. The days when raising money for your business meant bank loans, credit cards, and asking for money from friends and family are over. Of course, you can still access those funding sources if you want to, but you don’t have to. You have choices. You can opt for a crowdfunding campaign.

If you’ve been asleep for the last few years and haven’t heard of crowdfunding, it is simply a way to raise money from groups of people – strangers, even. And social media is used to help spread the word of your awesome opportunity. Before you get started, there are a few things you should know before you launch.

1. How It Works

We have a couple other blogs on this site that go into more detail about the types of crowdfunding and how each type works, but here are the basics. You come up with your business idea, write a killer business and marketing plan, and then upload your information and financial goals to a crowdfunding website. If people believe in you, your idea and the business potential, they’ll fund. Easy.

2. Re-think How You Present

You won’t be expected to show up at a boardroom to share copies of and speak to your PowerPoint presentation with all those fancy financial charts. Do what you need to make sure you have the details and the story straight, and your business plan is solid, but don’t spend your precious time preparing a formal presentation to professional investors. Instead, focus on a marketing pitch that appeals to the masses that you are trying to target. You still have to answer questions of crowdfunding investors, but alter your approach. You’re not selling to a hedge fund manager; you’re selling to your neighbor.

3. Bone Up on Your Social Media Skills

Learn social media; it’s the most powerful tool you have to make a crowdfunding campaign go viral. Marketing is hard work for one; social media makes it easy for your fans to become your marketers. You need to make sure you can create a persuasive series of 140-character “pitches”, an attractive and compelling narrative online with the right mix of imagery, narrative, and financials. Familiarize yourself with what works online and via social media, and if you’re not comfortable, ask for help.

4. Your Audience is Broad, But Your Campaign Shouldn’t Be

The reach of your crowdfunding campaign is limited only by your imagination. The better you are able to work the promotion aspect of the campaign via social media, the broader your reach is going to be. Potential investors may be down the block, in a different state, or different continent. A broad investor audience does not mean your campaign should not be targeted. You still need to know exactly whom you are trying to attract, and your social campaign should be built with that in mind. was founded by entrepreneurs and investors. We know what it takes to raise capital and to locate suitable investments. Find out how can help you raise capital from accredited investors.