His successful campaign achieved its £150K target in just five weeks and ending over funded by nearly 20%.
With two previous successful exits, Tony has raised a lot of finance in the past but this is the first time he has taken the crowdfunding route compared to traditional VC funding.
Tony’s 10 key steps to running a successful crowd funding campaign are:
1. Decide which type of Crowdfunding investment is for you. For instance Kickstarter offers unique rewards for money invested where as Crowdcube offers equity for investment
2. Do your research on the best crowdfunding web site that fits your business. Look to see if the investors on the site like to invest in your market e.g technology or consumer products
3. Once you’ve decided which crowdfunding platform you want to use, you then need to create a compelling introductory pitch. Explain clearly why people will need your product, what’s your value proposition?
4. Set an achievable funding target and if you are going down the equity route set a realistic valuation
5. First impressions are everything so create a compelling promo video and try to have the founder present the introduction
6. Once your pitch goes live market your proposition shamelessly and relentlessly. Create as much PR and hype as you can. There’s no point having a crowdfunding campaign if nobody knows about it
7. Don’t panic if you have a slow start. People are watching and waiting, nobody likes to be the first investor so if you have any friends or family that can kick it off that will help
8. Most successful campaigns reach their target if they get 30% funding within the first two weeks, so aim for this
9. Make your own customers your best advocates. If you have a web site already live then promote the funding campaign on your home page
10. Update your pitch whenever you have some good news such as a new contract
The whole process took 16 weeks; four weeks to create the pitch, video, financials and business plan, eight weeks for the campaign to run and three weeks to close the legalities, collect the money and send out share certificates.
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