Crowdfunding is by definition, “the practice of funding a project or venture by raising many small

amounts of money from a large number of people, typically via the Internet.” .. project is a great
way to connect with your audience and spread the word about your work .”

In a seemingly nonstop recession wave, small businesses are struggling more than ever to stay afloat,
and entrepreneurs are not facing great odds. Crowdfunding offers these individuals a chance at
success, by showcasing their businesses and projects to the entire world.

there are numerous donation crowdfunding platforms where entrepreneurs can safely ask for capital
such as Kickstarter, Indiegogo, RocketHub, and investment platforms like 1000 Angels, the company I
co-founded, to name a few. While each site offers their unique spin, the general concept is the same
across the board. Project creators can create a profile typically containing a short video, an
introduction to their project, a list of rewards per donation, and some images to elaborate. The idea is
to create a compelling message that readers will be drawn towards.

By focusing on a bigger purpose, the driving force behind a brand, project creators will be able to
create a unique community of likeminded individuals. Each campaign is set for a goal amount of
money and a fixed number of days. Once the project is launched, each day will be counted down and
the money raised will be tallied up for visitors to follow its success.

Instead of traditional investors, crowdfunding campaigns are funded by the general public. Typically,
most successful startup fundraising efforts receive about 25-40% of their revenue from their first,
second and third degree of connections. This could include friends, family, work acquaintances, or
anyone that the owner is connected to, including their second and third degree connections. Once a
project has seen some traction, unrelated consumers start coming out of the woodwork to support
campaigns they believe in.

There is a huge misconception that creating a successful crowdfunding campaign is as simple as hitting
submit and waiting for it to go viral. While this has happened to many brands, the vast majority of
projects will require a decent amount of effort on the part of the project creator.

Utilizing social media, creating email distribution lists before the project launches, contacting local
media, are all necessary steps to take if you are serious about your goal. Remember, this is not a
platform to ask for a handout. If you expect people to join your cause, you had better be prepared to
prove your salt.

There are three main reasons why people unconnected to a project or business would support it:

1. They connect to the greater purpose of the campaign

2. They connect to a physical aspect of the campaign like the rewards

3. They connect to the creative display of the campaign’s presentation

Knowing these points is extremely key to creating a successful campaign. Each campaign should
contain a powerful reason behind the idea, exciting and unique rewards, and an eye-catching display.
Video definitely plays a huge role in this last point, and novice film makers might want to consider
taking the time to ask for assistance from an educated friend, or seeking a crowdfunding platform that
assists with the video editing. In this age of the digital reign, many consumers will stop reading your
campaign if they don’t connect to the video, so this is really the gateway to your proposal.