Have a great idea but don’t have the capital to back it up? There is no need for you to put the brakes on your dreams just yet. Just try crowdfunding and watch the money grow right before your eyes. If you are wondering how to get crowdfunding for your startup idea, you are in the right place. Here is your complete guide to how you can raise money for your big startup idea with Ketto. With our quick fundraising ideas and simple tools that help ensure you meet your desired goal, you no longer need to put a hold on your great idea because of the lack of funds.
What Is Crowdfunding?
For years, crowdfunding has been changing how start-ups and businesses raise money. Previously start-ups needed to get financial backing from a bank or investor to go forward with their ideas. However, with crowdfunding, businesses no longer need to have this investor backup; even ordinary people can contribute to a cause or company they like.
Types of Crowdfunding
Donation: In this kind of crowdfunding, the investor donates to a cause without asking for anything in return. More often than not, this happens when raising money for medical emergencies or out of support for a great business idea.
Debt: This kind of crowdfunding is based on peer-to-peer lending. Here the money pledged is a loan and will have to be repaid with interest by a mutually decided date.
Rewards: In this case, an investor will receive a material reward for their donation to the campaign. The reward can be decided based on the amount that was donated.
Equity: Here, the investor gets a share in the business in return for the investment. The amount of equity they get depends on the amount of money they have invested in the business.
How to Get Crowdfunding?
Like almost everything in the world right now, crowdfunding can also be done via an online platform. Multiple individuals can contribute different amounts towards the project until the end goal has been reached. Most of the investments via crowdfunding are charitable donations, but in some cases, the investor may be looking for some form of return in the future. Crowdfunding is an excellent way for companies to get capital without debt. It takes an average of 11 days to create a crowdfunding campaign. It is not enough to make a portfolio and hope for the best. You must ensure that you put together extensive marketing material, create awareness for the campaign, and have excellent PR campaigns promoting your business.
Tips For A Successful Crowdfunding Campaign
Selecting the Platform
Several Indian crowdfunding sites provide different kinds of options for crowdfunding. Your campaign may fare poorly on a platform solely meant for another cause. Choose a platform with proven results while also having the tools to help you meet your goals.
Being transparent with your backers is key to ensuring they know they can trust you. Update the community as to what stage you are in your business and how their backing can help you reach the next level. Forming relationships with your supporters is integral to the campaign’s success.
Market Your Idea
Knowledge is power, and when your investors have enough information to see how your idea can help make their lives easier, they are more likely to invest in it. Use visual aids like pictures or videos and give the potential investor all the idea details. If you are pitching a product, it is helpful to have a video of the product’s prototype that showcases all the features.
Don’t Be Over Ambitious
Most potential big-money fundraising ideas fail because they are over-ambitious. Plan your campaign well and ensure that you only ask for the amount you think you need to get the business up and running. Crowdfunding goals that are too high can be a red flag to investors and result in you not meeting your goals.
Benefits of Crowdfunding
Now that you know how to get crowdfunding for your big startup idea, here are a few reasons you should consider crowdfunding over other investment forms.
Low Risk: When compared to taking out a bank loan or emptying your savings, crowdfunding has little or no risk.
Validation: Crowdfunding is a great way to test the waters before going into full production mode. If people are interested in your idea, your campaign will succeed. If not, you may have to think of another big idea.
Brand Awareness: While you may still have to create some form of marketing material, crowdfunding sites help educate the audience about your products, spreading more awareness about your brand and its value.
For more details about how to get crowdfunding for your next big startup idea, check out our website or get in touch with us and learn how we can help.