Three Things That You’ll Need to Convince Potential Crowdfunding Investors You Can Do Before They’re Likely to Give

by Alex Feldman

November 29, 2017

Crowdfunding can be the perfect way to raise money for a venture or project, but just like any other form of investment, you do need to convince people who are going to contribute of a few things.

While you are generally asking for smaller investments, so perhaps don’t need to pull out all the stops as you might with venture capital investors, you also have a lot more people to persuade, which in many ways means you need to cover a lot more bases in terms of making people believe in both you as a person, and the thing you are trying to create.

Here are three things you will need to convince most people of before they will give money to your campaign.

You Are the Right Person to Make the Idea a Reality

 

Say you have a brilliant idea for a video game, and you think people are going to love it. Convincing them that the idea is good isn’t hard, if the idea is indeed as appealing as you thought, but if you have no experience in development, have never managed a project of this size before, and have nobody on your team who can instil faith that the game will get made to the original idea, people will walk away.

Having some experience that you can draw on can be a huge boon, or bringing on board people to collaborate with who do. Alternatively, you can consider doing something like an online MBA, which you can do with colleges like New Jersey Institute of Technology. Having a prestigious qualification in business like this online masters in business administration can be enough to show people you know how to run things effectively.

 

You’ve Thought Through Your Budget

 

When you are asking for a sum of money, people want to know how you are breaking down, what it will be spend it on, and that it will indeed be enough to turn your idea into something real. A rough ‘finger in the air’ sum with no breakdown or a budget with no contingency will not look professional, and will put of business savvy investors.

 

You’ll Treat Investors Well

 

With crowdfunding, people give money with no expectation of repayment, however they do expect to get the rewards or finished products promised to them, and also to be kept up to date as you work on them.

People give to crowdfunding campaigns mainly for two reasons – one, because they want to see your product or business brought to market and potentially be a customer, and two, because they want to be part of the project. Demonstrating that you value investors and will spend time answering their questions and giving them updates is therefore really important.

If you can persuade people of all of these things, and also have a good idea and strong marketing, then you are far more likely to be able to raise your capital via crowdfunding.