Entrepreneurs and private companies are now looking for non-conventional ways to raise finance to begin something new or expand their existing base. Non-traditional alternatives such as asset based financing and crowdfunding have become popular and this is just tip of the iceberg!

Crowdfunding especially, has become an easy alternative for Entrepreneurs and Independent ventures. It can be utilized to raise capital from a number of individuals, some of whom might be friends or family. Crowdfunding can be utilized to boost projects or inventions, launch a business, pre-sell new products, launch a new clothes line or even finance production costs for a feature film. 

Testing markets for a new product or raising working capital for raw materials or inventory are some other possible outcomes for crowdfunding. The situation is changing every day with the spirit of entrepreneurs, who like to stay undeterred when faced with a financial barrier. 

Billions of dollars are raised annually through crowdfunding and these platforms typically charge 5 percent or more on the funds raised.

But contrary to the popular belief, crowdfunding is an old concept. One of the most famous examples is the Statute of Liberty in the United States of America.

The American Committee for the Statue of Liberty was short on cash for the Statue’s pedestal in 1884 and a newspaper distributer Joseph Pulitzer saved the day with his innovative idea. He composed an article and distributed it in his daily paper which compelled about 125,000 New York citizens into contributing $1 or less to raise the cash required. 

This produced $100,000 to pay for the Statute of Liberty pedestal. As a token of appreciation, every contributor’s name was published in the daily paper. The facts of the case reflect modern crowdfunding elements. 

Modern crowdfunding has been around since the 2000s, here are some types: 

Debt – Interest is charged in return of the funds raised, with a specified time frame for repayment.

Equity – Ownership or a stake in the company/product is offered in return of the money contributed.

Unfortunately, Debt and Equity based crowdfunding is not allowed in India, at present.

Donations – Money is raised with no promise of something in return. Everyone contribute because they believe in the cause. 

Rewards – A reward is promised to every contributor, in exchange of the money raised. Rewards can be a Product, social media recognition or invite to an event.

Through crowdfunding, thousands of entrepreneurs and inventors have raised funding for new technologies, research and products. Crowdfunding makes it easier to enter the market which previously wasn’t so simple. Though, Crowdfunding can’t serve everyone’s purpose and different platforms don’t have everything in common, but it presents as a very easy and non-conventional method of raising finance.

The post Crowdfunding – the new alternative? appeared first on Catapooolt.

However, after SEBIs (Securities and Exchange Board of India) new guidelines, a lot of questions have been raised as to whether crowd-funding will be able to achieve what is worth since equity crowdfunding holds no existence in India now. But the massive response that reward based crowdfunding portals are getting, clearly illustrates that Indian markets are investment ready, thereby proliferating the effect. Hence, emerging start-ups, social causes, events, tech innovations and even real estate can look at it as one of the major avenues for fundraising.

So, the sectors that can expect a lot from crowd-funding are as follows:

1. Social Causes-  People around are indulged in some or the other way to benefit the society. For such social causes, crowd-funding can be extra beneficial as it can fuel up the entire initiative by gauging financial help and stitching more hands to join the initiative or cause.

Source- The Hindu Business

2. Innovation Start-ups-  For start-ups, reward based crowd-funding has become the easiest way to reach out to masses in the first phase of launch itself. This in indeed instilling them with lot of confidence in themselves as well as the product because they are not just raising funds it is also fetching them with a POC (PROOF OF CONCEPT) at a very early stage which helps them in company evaluation. Also, when a start-up raises funds first via a crowd-funding platform and then reaches out investors, it gives investors a lot of confidence in the product because if masses are ready to support, then it is quite evident that the product will be a big hit post launch.

3. Tech Products- Young students, tech geeks, coders, hack-a-holics are working hard to come up with the most creative, hard to think and innovative products in the market to make lives simpler and easier. Crowd-funding is the best way to let people know about these innovations and also enable them to become a part of the product life cycle by creating a backbone for the innovation and be the their first set of early adopters.

Source- oberlo

4. Events and Festivals- We see a lot musical festivals, religious festivals take up the crowd-funding way, to easily access the crowd, generate visibility and sell out tickets early. Music festivals such as Control Alt Delete, DIY Day and Bangalore Open Air festival are a few examples of events that were almost entirely funded by crowd contributions in 2014. One such recent event that was also crowd-funded was Cultural Fest organised by Art-Of-Living, which gauged a lot of mileage through this initiative.

5. Films and Music Albums– “Fans have the power to make or break a celebrity” is very rightly said. They are those who with their power can also launch music albums and fund movies that they wish to. With recent developments in the crowd-funding and crowd-sourcing industry, music albums, movies, theater shows, plays are proving to be crowd pullers because they can showcase to their audience that once launched, they can be huge success.

6. Authors and Books- Getting a book crowdfunded is the new trend for self-publishing authors. Crowd-funding is the best way to procure pre-selling orders for books that have not yet launched, which also helps in generating a fan base and relieves you from the stress of tight funds. Therefore, before you even launch your book, you are already there on people’s shelves and all of this by sincerely leveraging the power of the crowd, who can also become your potential investors.

7. Artists and Art Projects- Very recently, an SRCC student group named “iOTA” launched their crowdfunding campaign to promote Indian art and artists whose DIS-ABILITY is their ABILITY. This campaign gauged a lot of eyeballs and momentum amongst the youth. Similarly, many other artists are looking at Crowdfunding as a decent opportunity to get traction, visibility and worth for their art.

8. Real Estate– Real estate developers admit that crowd-funding is a double-edged sword and needs to be handled carefully. Currently real estate is going through a tough phase, suffering from liquidity woes, lack of transparency, project delays, long gestations period and lack of regulation in the Industry but once crowd-funding enters the picture, all these woes and grievances are taken care of automatically. And according to the back builders and developers, the ROI from crowd-funding in Real Estate has proved to be it to be the best investment so far.

All this very clearly illustrates that Crowdfunding has become the mainstream alternative to conventional and orthodox modes of raising funds. Therefore, as per my perspective of crowdfunding, it promises a bright future and remarkable growth in the times to come, because crowd-funding not only ensures that investors fund the campaign, but people who believe in the project also become a part of it.

The post 8 Sectors that can look out for Crowdfunding as an Avenue for Funding! appeared first on Catapooolt.

Xiaomi is not just a smartphone company or an electronic giant but is also a hub of innovation. With its innovative products released every other month, it has given the signal to the world that it will enter every sector that has any space for innovation. Recently Xiaomi-backed Yunmai launched a new wearable called the Yunmai smart training watch for INR 7200. If we take the clock back a few days to February 15, 2019, Xiaomi Mi Men’s Sports Shoes 2 were launched in India that featured Fishbone Structure and shock absorbance for INR 2500 and a Mi Luggage suitcase for INR 2,999 in September 2018. Now, Xiaomi is back with another innovative product. This time it has launched a crowdfunding campaign for smart fingerprint lock (AreoX Smart Fingerprint U-lock) that obviously operates on the fingerprint sensor but comes with a physical unlock key as well if the battery runs out.

Now, the important thing to notice here is that most of these products were launched through the crowdfunding campaigns, has innovation speak its best, are in budget and also curated keeping Indian customer requirements in mind. The crowdfunding project on Xiaomi’s crowdfunding platform YouPin has already crossed 1,011,000 Chinese Yuan (>Rs 1 Crore), which is almost 2.5 times of its set target. You can crowdfund and get the U-Lock with the shorter beam priced at 199 RMB(INR 2050) and the other one with the longer beam priced at 219 RMB (INR 2256) which is likely to start shipping from May 23, 2019.

Key features Xiaomi’s AreoX Smart Fingerprint U-lock Sports

As per the crowdfunding page, the U-lock can be used to lock bikes and even cars. The U-lock sports a stainless steel lock beam for which the company claims, can’t be easily cut with the help of a hacksaw and comes with “an anti-theft lock body”. The body of the lock is IP65 certified that makes it resistant to water and dust. The biometric identification can unlock within about 0.55 seconds and as to serve the purpose of any lock, to keep your belongings secure, the company claims that the lock detects dummy fingerprints within seconds. Its battery can last up to 12 months and you get a USB Type-C port in case, it gets discharged.

A smart lock that costs INR 2000 to save your precious belongings isn’t a bad deal? What are your views on this thing?

Sources:

Xiaomi announces the AreoX Smart Fingerprint U-lock priced at 199 yuan (~$29) – Gizmochina

Xiaomi launches AreoX Smart Fingerprint U-lock as part of crowdfunding program – BGR

AreoX smart fingerprint U-lock – YouPin

Main Image: ©

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As per a Technavio’s report, the global crowdfunding market is anticipated to grow by almost $90 Bn during 2018 – 2022.

Now that is all well and good but if you are dealing in the equity crowdfunding platforms then Securities and Exchange Board of India(SEBI) has some bitter pills that you will have to swallow.  

Timeline of the events that led to this day

In the year 2014, SEBI released a consultation paper that proposed structural, legal and regulatory framework around how crowdfunding shall work in India, which was further followed up by a consultation with the government to help evolve the guidelines on crowdfunding in the following year, 2015.

In 2016, SEBI released a consultation paper on regulating equity-based crowdfunding, that warned, “Uninformed and unsophisticated investors may act with a ‘herd mentality.” In the same year, SEBI issued warning to the crowdfunding sites regarding fundraising on unregulated electronic platforms.

In 2017, SEBI expressed its concerns by sending half-a-dozen show cause notices to the crowdsourcing bodies that were acting as an unauthorised stock exchange.

Now, major equity crowdfunding platforms such as LetsVenture and AngelList have registered themselves alternative investment funds (AIF) with SEBI, after receiving notices from SEBI for complying with regulations.

What is Alternative Investment Fund and how it will impact crowdfunding platforms?

Alternative Investment Fund(AIF) is a privately pooled investment vehicle that collects funds from sophisticated investors whether Indian or foreign. These funds are then invested in accordance with a defined investment policy.

Now, there are Category I AIF, Category II AIF and Category III AIF and an applicant, as may be applicable can seek registration as an AIF in one of the above-mentioned categories, and in their sub-categories.

Category I AIF includes entities such as venture capital funds (including angel funds), small and medium enterprises (SME) funds, social venture funds and others.

Now, the point of concern for SEBI was that the startups listed on such crowdsourcing platforms used to source money from hundreds of angel investors without going public. And, as per the Indian Companies Act, a company cannot allot shares to more than 200 people in a financial year through private placement, which is a method through which companies raise funding in return of equity shares. If the number crosses the 200 mark the offer is deemed as a public offer and should be governed by SEBI’s fundraising norms.

Under AIF these platforms can only source money from an investor who has net tangible assets of at least INR 2 Cr and is a serial entrepreneur, early stage investor, senior management professional with a minimum experience of 10 years, or is a corporate firm owner with a net worth of at least INR 10 Cr.

Only startups which are incorporated in the past five years are eligible to receive investments through AIFs. Its turnover should be less than INR 25 Cr. and it shouldn’t be backed by any industrial group with revenues more than INR 300 Cr.

What now?

Now, all major crowdsourcing platforms have released a disclaimer on their website declaring that they are neither fundraising or a stock exchange platform. AngelList has defined itself as an Angel Fund, duly registered with SEBI. LetsVenture is registered with SEBI as an AIF and same goes for other notable angel funds.

Sources:

After SEBI Notices, Crowdfunding Sites Register As Alternative Investment Funds – Inc42

Alternative Investment Funds – SEBI

Main Image: ©

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Now, if you are thinking if your idea, initiative or whatever you have in mind is not something that the crowd will be interested in supporting, let me clear your doubts. You just need to look out for the multiple solutions possible. Figure out the ways how other people approached the same issues you are facing now. You will become an alchemist, my friend. You will create magic.

Be it politics, healthcare, real estate, women entrepreneur oriented crowdfunding, crowdfunding startups, fintech, technology, legal, rescue and causes, innovation, some crazy Innovation, gadgets, brewery, education and whatnot, crowdfunding is the key. Stop hesitating, start crowdfunding.

Here is an infographic tracking the scope of crowdfunding in different domains.

Equity and debt investment crowdfunding is another gem adding to the beauty of crowdfunding. You can learn more about it in the preceding hyperlink.  

The beauty of crowdfunding is in its omnipresence, be it crowdfunding for education, legal, startup, healthcare, gaming or political.

To read more on the above infographic, read the following write-ups.

Politics

• Atishi Marlena, AAP’s East Delhi Parliamentary Seat In-Charge’s Crowdfunding Campaign Reaches Rs 19 Lacs

• Shah Faesel, The Kashmiri IAS Officer Launches Crowdfunding Campaign Seeking Donation For ‘Clean Politics’

• Dmytro Gnap, A Former Ukrainian Journalist Crowdfunding His Bid To Be Ukraine’s Next President

Legal

• Julia Salasky, The Women Who Made Justice Accessible With The Help of Crowdfunding

Startups

• When Blockchain, AI And Big Data Became Friends With Crowdfunding In India

• Black Hops, One Of Australia’s Fastest Growing Breweries, Invites Backers To Its Equity Crowdfunding Campaign

Women Entrepreneur Oriented Crowdfunding

• Cheer Up, Ladies! Studies Show How Women Are Outshining Men When It Comes To Crowdfunding

Fintech

• Crowdcube, The UK Based Crowdfunding Platform, Announces £500,000 Fund To Boost Inclusive U.K Fintech

• EY Report: Crowdfunding Outraces Bank Financing As Preferred Option In the UK

Healthcare

• iDyslexic, An App Facilitating Brighter Future For Students With Dyslexia Goes Live Ahead Of Crowdfunding

• Crowdfunding Campaign Of A Medicinal Cannabis Company In New Zealand Reaches $820K

Innovation

• FOCI, A Wearable That Will Help Boosts Your Focus Like Sherlock’s Is Finally Here

• CycleWing, A Deployable Wind Propulsion For Bicycles Is Now Crowdfunding On Kickstarter

Rescue And Causes

• Crowdfunding Campaign To Treat The Shot & Robbed Telangana Engineering Student Sai Krishna In Michigan Goes Live

• Crowdfunding Initiative Supported By Messi, Mbappe & Other To Rescue Missing Emiliano Sala Reaches £370k

Gadgets

• All-In-One Modular Smartphone Doogee S90 Is All Set For Its Crowdfunding Campaign Launch

• Meizu Zero, World’s First Holeless Phone Goes Live On Indiegogo Crowdfunding For $1299

TV Shows And Art Projects

• The Chosen, A TV Show About Jesus, Issues Equity, Making It The Largest-Ever Crowdfunded Campaign In The Category

• Show4me, A Music Interaction Network & Crowdfunding Firm Closes $12.8 Million Funding Round

I hope you enjoyed reading it. Let me know what do you think of the scenario of crowdfunding in India. Criticise it, or ask questions if you think I can answer them. Let’s have some conversation. Over to you.

Learn how to create your first crowdfunding campaign.

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Sir Francis Bacon(1561 – 1626), an English philosopher and statesmen, who served as Attorney General and as Lord Chancellor of England once said, “knowledge is power.”

Few statistics I want you to read:

The population of India(Live): 1,362,655,864 as of Friday, February 1, 2019, based on the latest United Nations estimates.

As per a Cisco study, India to have over 800 million smartphone users by 2022

India has 600 million young people, i.e more than half India’s population, are under 25 years old; no country has more young people.

Few more statistics to take into consideration.

Kickstarter, which launched in 2009, has received pledges worth more than 3.9 billion U.S. dollars as of October 2018.

The global crowdfunding market will grow by almost USD 90 billion during 2018-2022.

The point that I am trying to make.

Seeing the above statics, it is quite clear that it is not the knowledge or numbers where we are lacking but the call to action to serve the purpose. It is the responsibility of the people in the crowdfunding community to make people know what crowdfunding actually stands for other than it’s mere definition. How crowdfunding can act as the catalyst for any feasible idea in someone’s mind. The actual potential of the crowd needs to be realised. Benefits other than funding, as in early adopters, visibility and viability its gets for a startup, are needed to be made clear in people’s mind.  

Why erase your dream of releasing your own music album or publishing your own book? Why should the lack of money put a full stop to all your dreams? What if that idea had the potential that could have changed your whole life? Crowdfunding is something that can save you from your biggest fears and regrets.

Why aren’t we Indians innovating enough to produce a world-class smartphone? Do we not have the brains or do we not have the tools, vehicles to make such things a reality? We do, but don’t you think many of us are trying to play too safe? Crowdfunding is the key, the crowd is the key, you are the key. Open new doors with that key because now is one of the most feasible, the best time in complete human history to make your dreams come true. Happy crowdfunding!    

Do you ask how crazy can any idea be? Read the Rocketbook story where they pitched about microwaving a notebook and still got crazily crowdfunded.  

Main Image: ©Thinkstock

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The post Why Early Stage Startups Are Not Leveraging The Benefits Of Crowdfunding In India? appeared first on Catapooolt.

VidAngel, an American streaming video and production company released a concept pilot of The Chosen, a story of Jesus, on social media that ended up being viewed 15 million times. Yes. That actually happened. No kidding.

This is what Dallas Jenkins, director and co-writer of the series, who recently directed The Resurrection of Gavin Stone for Blumhouse Productions and Walden Media, has to say on the miracle:-

“We started this campaign with no built-in audience and we based it on a short film I made on my friend’s Illinois farm for my church’s Christmas Eve service after my previous film had disappointed at the box office,” Jenkins said. “What’s happened has blown us away, but it’s an indication that there’s tremendous demand for something like this. I love binge-watching original series, so why not one about Jesus and his followers?”

The project utilised “equity crowdfunding” to raise money for the scripted show, offering one share for each dollar invested. The production company artfully issued equity to investors making the use of a provision made in 2016 in President Obama’s so-called JOBS Act. The “equity crowdfunding“ is highly regulated by the Securities and Exchange Commission(SEC), but has stated that production companies and other entities can offer a share of the profits to online strangers who financially invest in their projects.

This project called “The Chosen” is live and has raised more than $9 million. They are seeking $13 million to produce a full series.

Here are the historical statistics of crowdfunding in any TV show:

Super Troopers 2, the record-holder for film and TV category in Indiegogo raised $4.6 million. Mystery Science Theater 3000, which was later picked up by Netflix had raised $5.8 million on Kickstarter. None of these projects at Kickstarter or Indiegogo offered equity to investors.

What shall we learn from it?

Equity crowdfunding and rewards basics. 

• It should be noted that these shares can’t be resold at this time, but managers of the production company have guaranteed that they shall not accept any profits — should there be any — until all investors make at least 120 percent on their investment made. Investors could also potentially make more money, as they are the partial owners in perpetuity. VidAngel and crowdfunding investors are hoping to make a profit via streaming and broadcast licenses, DVD and VOD.

• Instead of the usual reward schemes, like tickets to screenings, DVDs or one on one interaction opportunity with actors, they chose to go with equity crowdfunding and the results are in front of you.

You can watch the pilot of “The Chosen” and listen to the team behind the project in the following videos below.  

Do let us know your views on the matter discussed. If you also have any idea that has been lingering in your mind for long and has not manifest just because of lack of funds, you can launch your campaign with Catapooolt – India’s largest crowdfunding platform.  

Main Image: ©VidAngel

The post The Chosen, A TV Show About Jesus, Issues Equity, Making It The Largest-Ever Crowdfunded Campaign In The Category appeared first on Catapooolt.

It’s not a new concept! Memorials and worship places have been funded and built in by small donations for years. In the recent years, Indian startup story has witnessed more twists than before. If you are also a part of this startup story, crowdfunding can be the way of connecting investors and bring your story to life.

Here’s how does it work?

Selecting the project and building a story

Launching a new product or starting a campaign should be specific with a perceived outcome. Your campaign should be time bound. Try to make a complete story that would appeal people to contribute in your product. Make them understand why your project is unique and what problem you are solving that will compel your potential backers to fund you.

Mount a funding budget

Set up a specific budget you need and be clear where it will go. Be precise about meeting up your targets as it allows the investors to know the licitness and credibility of your project. It shows that people have been interested in backing up your project,

The budget should include the commission fees of your crowdfunding platform and the reward budget.

Choosing a Platform

It is the one of the most important and crucial step in launching your crowdfunding campaign. It depends upon what type of project you are launching and what your goals are. There are loads of platforms to decide from such as Milaap, Indigogo, Catapooolt etc. which offers you a good stuff of audience.  You need to decide between:-

Reward and donations based – Offering ‘rewards’ and perks for your backers is always good. You could give them gifts and perks based on how much contribution people pledge.

‘All or nothing’ or ‘Keep it all’- Some platforms keep the rule of ‘ All or nothing ‘ where if you don’t meet your target you will have nothing. And platform like Catapooolt offers you to get all the money minus their fees, even if you fail to meet your target.

Prepare a pitch and promote your campaign

Prepare an overwhelming pitch about your campaign telling who you are ,what’s your idea, why you started that will revoke the interest of your potential pledgers. Have an impressive pitch video catering a personalized strife to the viewers. You have to make people informed about your crowdfunding campaign. Create a coordinated online social media campaign with the help of your crowdfunding platform. Reach out to media and people to have more coverage to your campaign. Encourage them to back up your campaign by hosting an event or through any other engagement. It is not easy to arouse people’s interest unless you give your full commitment to your campaign. Be passionate enough to turn your dream into reality.

Follow Feedback

It is your backers which helps you to climb the mount. Taking your customers feedback seriously is really significant. Getting reviews and making improvements is essential before launching the campaign. Keep in touch with your supporters and keep them modemised about your progress. Thanks them and let them feel that their contribution is making a difference.

Its time to capitalize your venture and let your business grow through crowdfunding. The arise of crowdfunding has provided an alternative to traditional ways of funding. It is an effective way to help entrepreneurs in reaching their dreams. The increasing social media trends inculcates perfect conditions for crowdfunding as a fundraising tool to prosper in the capital market. So fund your project and go crowd out loud!

The post What is Crowdfunding and how does it work? appeared first on Catapooolt.

“Crowdfunding is creating a new public demand which connects common people with investment opportunities that used to be accessible only by the very wealthy.”

And there is no doubt or secret to the intricacies of investment that crowdfunding has aid to small businesses or the newbies of the startup world by connecting them to the common public for raising capital. Crowdfunding simply means, getting funds from a large number of people with the usage of the internet and an online social media platform. The inception of this modern day crowdfunding dates back to 1997 when a British rock band funded their reunion tour through online donations from fans. Since then, crowdfunding has taken many forms and has emerged as one of the most effective options for entrepreneurs and other project initiators to validate their ideas.

So let’s understand some of these different dimensions of Crowdfunding and gets penetrate about them:-

1. Reward- based Crowdfunding

This model of crowdfunding is mainly used by startups who want to accelerate the pace of their initiative and by other projects of artists or film producers, software development or civic projects etc. Reward crowdfunding is based on the perks or rewards a potential backer gets in return of the investment made by him/her. Rewards can be in the form of product or service, he/she is backing up or any other rewards mentioned in the campaign in prior.It is a lucrative method to raise funds as donors donate in the expectation of return. The rewards are differentiated on the basis of backers contributing smaller amounts and the ones who cater gratitude.

Following perks can be rewarded to the potential patrons:

• The backers who contribute less than rs.500 can be revert back with the recognition through the way of a ‘Thank You’ note or a gift card or simply by thanking them personally on the campaigner’s social media page. Make them realize that their every effort is worth of a count.
• Contributors can be rewarded by services like giving them discount, or some smaller reward tiers like shout outs or exclusive t-shirts.
• An effective way of rewarding is pre-orders. Backers will back up in the expectation of availing the product they are contributing their money for.

Companies like Catapooolt, Kickstarter and Indiegogo have emerged as the best reward based crowdfunding platforms of India and are helping hundreds of startups gaining funds for various causes.

2. Equity- based Crowdfunding

SEBI (Securities and Exchange Board of India) regulates the rules regarding Equity Crowdfunding and has made it illegal in India. In this model of Crowdfunding, the backers are termed as ‘investors’ because they invest their money into the company for an amount of share in it on the basis of capital invested. Primarily, these investments are made in the companies with the goal of making a return in 5-6 years.

Usually, a large amount of capital is raised through this model and not the smaller ones. This amount is mainly for either launching a company or taking a big leap, not just for backing up a cause. In India, such funds are raised through an angel investor or a VC for a startup. We have been using other forms of crowdfunding that is reward or donation based, so if you want to raise capital you can avail the advantages of crowdfunding through platforms like Catapooolt for ensuring a swift capital coming in your way.

3. Debt- based Crowdfunding

Also known as ‘Peer-to-Peer Crowdfunding’ or ‘Crowdlending’ is a model based on the process in which investor invests in your project in return of the ‘interest’. Money lent by multiple investors in small amounts through the internet is called Debt-based Crowdfunding. It is somewhat similar to loan except that in crowdfunding, loan is borrowed from a number of investors in small amounts rather than from a single bank. Debt Crowdfunding has an edge over bank loan because of the interest rates being lower and funds can be garnered with ease by reaching among the masses at the same time.

It can be an optimum method for businesses that might get failed to raise loans from banks. But as the saying goes, nothing comes exquisitely. The drawbacks faced by debt-financing are the regular interest payments and the security that companies have to pledge against their assets. Thus, it may be suitable for companies who have already established venture and adequate assets or sufficient cash flow credibility.

A Quick Collation

A major asset that Debt Crowdfunding has over an Equity Based Crowdfunding campaign is that the campaigner doesn’t have to lose any share in its company. Thus, investors are serviced only with the profit share and the owner continues to enjoy his ownership. Equity Crowdfunding is illegal in India. Therefore, for newly established ventures, an imperative option can be to go for the reward and donation based models of crowdfunding. Whatever the model you choose, just go dig well before in the advantages and disadvantages it chalk up.

The post What are Different Crowdfunding Models that have steamroll Traditional Financing? appeared first on Catapooolt.

Mark Cuban called the idea crazy whereas another Shark Tank judge, Kevin O’Leary, said the founders were out of their minds to make a product that claims to be reusable. He asked them how did they intend to make money with such a product. The question was why would anyone buy it again if it is reusable?

Today, the Rocketbook Everlast is Amazon’s best-selling wire bound notebook. How did they do it? They did it with crowdfunding. The company has shipped more than 75,000 notebooks to its crowdfunding backers and their customers.

 That’s it. I know it is hard to believe, but I promise you, it is all true and happened here on Earth. Go watch their Shark Tank video. When you are done with it don’t forget to read ahead because here are our top 10 hacks that will help you crowdfund your campaign like a rockstar. Are you ready?

Here is the ‘After the tank’ video.

1. While launching your campaign, set the automatic contribution amount to INR 2.5k instead of zero.

When you do this, it increases your chances of raising a bigger amount quicker. Keep INR 100 as an option as well. This will help them show their support and appreciation for your project. They might not leverage the reward benefits but they would be the ones who would bring more contributors from their circle.

2. Surpass the progress bar.

For a moment, just think of yourself as a potential contributor for a random project you saw on a crowdfunding platform. Would you just like that put your money into it? Most probably, no. A stranger doesn’t do that but people in your friend circle and near ones would. So, how do we make strangers contribute? The answer to this is to pass the contribution progress bar which usually lies between 20% to 30%. Your job is to get your project funded in between that range from your near ones as quickly as possible. They will be your early adopters and so will pave the path for others as well.  

3. Leverage the power of bloggers and influencers.

Do you ask why? They are the people with huge numbers of followers and whom people believe in. Isn’t that what you were looking for? Way before you launch your campaign, start getting in touch with influencers who represent your domain. Build a relationship and ask them for a favour or their services. Make them understand your project and then see the magic. Also, don’t get so choosy with follower numbers, whether it is 5k or 500k, all would do.

4. Email marketing is no underdog.

When it comes to crowdfunding campaigns people often take it as the underdog of marketing. Well, as per Indiegogo, the first 30% of your funding goal can be achieved by the people who are passionate about your project and would also email their networks on your behalf.

You can also ask for a favour from people close in your network to share their email contact list. The bigger your email list grows the nearer your crowdfunding goal seems. Also, do not forget the timely follow-up job. After all, it takes 6 to 8 impressions to generate a viable sales lead. 

5. Social media hacks.

After you have successfully launched your campaign with an awesome pitch, backstory and video content and have also surpassed the contributor’s progress bar it is to time go godspeed. Do proper research about your customers and demographics. Get the help of social media experts and go for paid marketing. A few bucks won’t hurt when you will see the buzz it creates and profit it brings in. Export all your contacts from your social media profiles and add them to your email list.

Here is how you can download your Facebook contacts.

6. Engagement is the key.

As soon as you have launched your campaign and are done creating the buzz with the help of your social media outreach, you should not miss the chance of carefully listening and engaging with your potential backers. On one hand, you get their instant feedback on your campaign and on the other hand, you will see many requesting for adding this or that to your product or service. You might get leads for your next product and they would be the one gladly waiting for your next product launch. Hence, engagement is the key. Make each and every one of them feel special.  

7. Gamify your rewarding game.

Rewarding your backer is the sweet spot where you would want to hit. It can make them click on the ‘contribute’ button almost instantly. It could be as simple as merchandise or as special as the passes to your live event. Try to make it an experience for them to cherish and something cool which will make them flaunt it on their Instagram profile. I hope you got the idea.

8. Go live on Instagram

While the campaign is still in progress share the progress of your product prototype or how excited are you for achieving half of your goal. Get your creative juices to work. Go live on Instagram with your influencer friends using “Go Live with a Friend” feature. You got to create your own buzz.

9. Give an option of ‘Refer to your friends’

10. Attend events and attract several eyeballs for your campaign.

The last but not the least, go local. Approach anyone in your network where you feel you can showcase your product and get lucky. Attend relevant events and talk to people about your campaign. This is how you get people talking and you know, people bring business.   

Other than that you can create your own comic series and share it on social media channels, opt for mentor consultancy, or go for a press release. Do not forget to embed multiple payment options and make it super easy for your backer to support your campaign.

Conclusion:

No jargons, no repetitions. I know you are smart folks and have remembered it all. Just remember, what Elon Musk had to say, “When something is important enough, you do it even if the odds are not in your favor. 

Let me know what do you think of the above points. Criticise it, or ask questions if you think I can answer them. Let’s have some intelligent conversation. Over to you.

The post 10 Smart Hacks To Market Your Crowdfunding Campaign Like A Rockstar appeared first on Catapooolt.