Coverage by Bhat Dittakavi of Variance.AI on “Crowd Funding” by Sunny of Revol at T-HUB on 14th Sept 2017.
Why should you care about crowD funding?
Kickstarter raised 3B. Launched 370K. 131K successful launches.
Good to validate your product, who might be your customer and creation of proof of concept.
I talk about logical flow of crowd funding.
What it is?
Raise money through people who care about your products. This is a journey.
Platforms: Indiegogo, Kicksrarter
Video plays important role. First 10 seconds are the key. Great story. A call to action at the end of the video.
Have a high quality production of video. Decide how much to raise. Not too little. Not too much. Typically it is anywhere between $10K to $50K. Have a great idea and strategy.
Decide the length of campaign. Standard is 40 day campaign. 30 day is the campaign and last 10 days you push the button and do convertions.
Have enough peeks decided for all interest groups to pitch for the projects. We have to give away of T-shirts and promise to being in touch in exchange for $25.
Chances of you getting funded incrementally increases as you get funded more.
Cross promotion: Find similar projects and write to them to help you by writing about you in their updates.
Planning and building buzz
Soft launch: Family and friends.
Leverage Facebook and social media. It drives awareness and concessions. Reach out to all and tech bloggers and press houses. Do this before the launch. You want as much noise around social media by the time you lunch
Create early momentum
Ensure the flow around the campaign. Keep it simple. Ensure payments go through smoothly. Have fundraising bench marks. Go through this daily. Listen listen and listen to what each is telling.
Spread the word
Secret perk, say referral contest. Post updates constantly. Post updates about the journey. Reach more.
Last week is when you do a sense of urgency. Thank contributors. Personally write, ask them to refer or write.
Think out of box and do last week campaigns.
Communication is whrn all the problems start. Now that you raised funds, it gets tighter. Only 35% get funded. Only 15% of the funded ones deliver.
Pre-campaign: cost times 3 for crowd funding and cost times 5 is for retailers.
Order more. If you need 1000, do 2000. Order is above 2000, go to China.
Q) How much say do these platforms have?
A) Kickstarter is all or nothing. They charge 5%. Money goes to kickstarter till the campaign is over. Once the funding is fill within the campaign, they release the fund to you. They font monitor your fulfillment. Crowd funding community are part of the journey. They are passionate about you too.
Q) Iterations with prototypes and what is acceptable level?
A) We did a 3D printing with wrapper around vinyl paper and went to kickstarter. It shall fit well. Go with products mostly finished esp in technology. Changes in versions is OK. They are brutal. Be open and talk about challenges. Design, esthetic, utility and functional changes you can do but do communicate.