What is Crowdfunding?
Crowdfunding is one of the most innovative ways to fund or part-fund your project. Crowdfunding is the concept of an individual(s) reaching a goal by receiving small contributions from many parties in order to finance a particular project or venture. This is normally achieved by producing a video about the specific project, which is then posted on a Crowd funding platform on the Internet.
A Crowdfunding platform is where people who want to raise money can create fundraising campaigns to tell their story and get the word out about their projects. It is also a place to discover what people all over the world are passionate about and how you can get involved.
Achieving success through crowdfunding
Creating a campaign is simple...
The first step is to tell people what you are doing and how they can help.
When making your crowd funding video tell people why your project deserves to be funded. Contributors tend to fund ideas they're passionate about. Explain to contributors what you're hoping to achieve. Keep it concise, yet personal. Introduce yourself and your background. Describe your project and why it's important to you.
Projects with unique benefits are more likely to achieve their targets. A benefit is something you offer people in exchange for their contribution. Eg: public recognition, this then will also encourage them to stay involved!
Contributions can start from as little as £1 up to £5,000, depending on the platform you choose.
People contribute to campaigns for many reasons, but usually it's because they want to be involved in what the campaign is doing or because they want the benefits that are part of the campaign.
Depending on the type of platform you use there are generally two options of funding (Fixed and Flexible). Fixed funding means you only collect funds raised if you meet your goal, which is great for projects that can only continue if they raise a minimum amount. Flexible Funding is where you keep all the money that you raise, which is great for projects that will benefit from any amount. Flexible funding is the most popular funding type that people use.
In order to have a successful campaign you need to start telling people about your project.
Social media is just one avenue of getting the word out about your campaign. Promotion can also be done in person, via email, on social media, blogs or your website - just spread the word. This will help kick-start your campaign from day one.
Evidence shows that those that usually get the best results through Crowd Funding tend to post regular updates via their network about their project at least once a week to keep everyone engaged and to increase the level of funding.
The first 20% - 30% of your goal could come from other fund raising, your inner circle (closest friends, family or fans! ). They are the people who will support your project because they know and believe in you.
Another alternative funding avenue is through Nesta.
Nesta is an innovation charity which provides help with projects for people and organisations and they have recently started a project called Rethinking Parks see