Crowdsourcing donations: getting free money for your startup in Europe
Crowdsourcing donations: getting free money for your startup in Europe
Jan 13, 2015
Crowdsourcing donations: it's tough getting invested in in the first place, so startups have to look at more than just the usual options of getting an investor, getting a bank loan or getting help from family and friends. Crowdsourcing (or crowdfunding), if done right, can be a great, budget-friendly way of accessing capital. This slideshare tells you what it is, where to get it in Europe and how to do a successful campaign (with some awesome examples).
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Crowdsourcing donations: getting free money for your startup in Europe
Press release (Oct. 2013): Crowdfunding in the EU - exploring the added value of potential EU
action
Commissioner for Internal Market and Services Michel Barnier said: "Crowdfunding – this alternative form of fundraising that is collective, participatory and interactive – is becoming increasingly important. It has the potential to bridge the financing gap many start-ups face and to stimulate entrepreneurship.
US >vs< EU“While the U.S. currently leads the world in volume of
crowdfunding transactions (estimated by the 2013 Crowdfunding Industry Report for this year to be at 72%), a sizable chunk will come from Europe, at 26%, and 2% from the rest of the world.”
“Crowdfunders generally fall into different categories: equity, donation, reward, and debt. The last is also known as microfinancing — and commonly referred to in Europe as “peer-to-peer lending.”
– David Drake, Forbes, 2013
Crowd-sourcing
in Europe – or should I say, UK
and Nether-lands!
Source: crowdcafe.com
Is crowdsourcing a good choice?
• Bypass banks, venture capital firms and angel investors (and save asking more from your family and friends)
• Have control over the rules of investment (depending on which website you choose)
• Market your startup on popular crowdsourcing platforms
• Fast setup
i.e. It’s the path with the least strings attached
Crowd sauce – if you are successful, it’s also an awesome
way of validating your idea
Most common types of crowdsourcing
…and since money doesn’t grow on trees for startups…
Here’s a list of the most budget-friendly options in Europe!• CroFun
• RocketHub• IndieGogo• KissKissBankBank• Ulule• Zequs• Booomerang• 100-days• Start Next• Verkami• Goteo• Eppela• MassiveMov
*note*There may be many
more – a lot of crowdsourcing sites are specific to an industry,
charity, or country. Check out
www.crowdsunite.comfor more options
Cool, so I know the platforms. What’s next?
An ass-kickin’, mind-blowin’
campaign design! And then a marketing campaign. Yay.
Choose the appropriate platform
Image credits: quickmeme.com and museumvictoria.com.au
Pick the right time of the year – avoid major holidays and when people are
generally broke
Create a compelling theme/message
Seth Godin’s “The Icarus Deception” campaign
Create a short video and supporting images reflecting the core message of your idea
TechJect’s Dragonfly Robot: http://www.youtube.com/watch?v=c9lM-vM2dk8
Offer attractive rewards for contributors – that you can realistically do
Source: jewcer.com
Leverage the shit out
of your network in
advance and during
the campaign (it helps if
you have an engaged
following on social
media)
Reach out to those who have successfully raised and ask for tips and endorsements
Keep the excitement rolling with regular updates on social media, your blog,
email list
Tom Woodward
Mention it on forums full of people who you identify as the right contributors
Top 5 mistakes when doing crowdsourcing (from the owners of IndieGoGo)
• “Crowdfunding is not a lottery”• “Setting a goal that is too damn high”• “Jumping the gun with marketing”• “Dry, business-like pitch”• “Perks that don’t work”
The article that inspired this Slideshare is available on Pitch.rs
Got questions? Find us here!
Related Documents
