Crowdfunding

Crowdfunding

Times have changed. Nowadays the world of entrepreneurship is no longer the same world that used to be few years ago. Different phenomena such as crowdfunding have affected the ecosystem of entrepreneurship in diverse ways. Crowdfunding has been a key element of support focused in entrepreneurs with great ideas who also want to be in front of a particular business.

Crowdfunding is a method of fundraising for small amounts and numerous contributors to fund a purpose, both profitable and free. Furthermore, it is becoming very common for being a method of easily access and fast results through internet platforms, both to implement ideas from entrepreneurs to finance social and charitable projects.

Crowdfunding also overcomes the alleged “clash” between new digital technologies and musical space (piracy, copying, downloading, etc.) showing that they are entities that can generate synergies and cooperation.

The importance of crowdfunding is that not all companies have access to the enough capital for the development of their projects (65% according to figures from Venture Partners); therefore the collective funding represents a solution to this problem (and also an input) capital aims to be used in the project.

In my opinion it's a different way to get help without going through dense filters in other entities. The crowdfunding is a much easier way to get economic support having only a good idea, development or project. Anyone can donate a small amount of money for it if they like the idea. At the same time, it could entail the generation of employment bringing benefits to the development of society.

There are several components to keep in mind before creating a crowdfunding campaign. For example: Presentation, How you present your idea and the way that you use to do it on your campaign page is likely more important than the idea itself. You have just seconds to grab the attention of your potential supporters. Other components are Innovation, quality, the right time, rewards.

But the most important components to have a successful campaign (key success factors) are:

- Clarify objectives, targets and time frame

It might sound obvious but it is important to clarify early on exactly what it is that you are seeking to achieve and share it amongst the team tasked with delivering the project. This is an important step because it should encourage you to come to an agreed position and also help bound the scope of your aims. It should make you realistic, and consider if this is a single project or perhaps a multiple project process, making the targets more manageable. As they say, eat the elephant bite by bite.

- Choose the right rewards

Another key element of operating in the online environment is the idea of lowering barriers to entry. You must be able to allow a diversity of funders to step in with opportunities for even very small donations being possible.

- Pitch and communication strategy

Having a well thought-through pitch is essential. Potential investors need to understand what they are involved with and why they should care. Being able to communicate and reiterate those key messages throughout the campaign is fundamental

- Video and other media

A video to promote a project is very valuable. In a rich media world people are readily attuned to rich visual prompts. We will get only limited attention time so video can convey more in a short space of time: one will say more in terms of message in a short video that in a written pitch. It can be more engaging and can introduce quirkiness or humour and other elements that can make a campaign more attractive.

- Audience & Channels who you are planning

Whilst we emphasise the need to reach beyond the initial immediate audience, you will always have to target an audience to begin with.

- Resources and responsibilities.

It’s important to keep in mind different examples of campaigns that have followed all of the steps and components to have a successful campaign, that’s why I want to highlight 3 campaigns that I really like because of their targets and the structure that they have.

- Sustainable and Fashionable Reforestation ( Transformadora Ciel)

Carlos Roca and his four friends had the idea to combine the design with nature by creating sustainable products with materials like wood and that's how Custom Projects dedicated to manufacturing wooden frames for eyeglasses born.

Making your glasses is handcrafted and made 100% by hand. Custom Projects uses certified sustainable forests in Mexico, Colombia and Costa Rica woods, as well as lenses manufactured by the German company Carl Zeiss.

One of the commitments is to plant a tree for every pair of glasses sold, and your goal is to perform the "reforested" in November with more than 4,000 trees.

- Financial Education for Latin American people in New York (Fondeadora)

This is one of the new projects in bottomer, the project objective is to provide information and access to basic financial services through workshops Hispanics in New York, as the lack of these elements to Hispanic families deprived of economic opportunities, and prevents them financial security and stability, which makes them easy prey to fraud and abuse.

Marcela Orvañanos of Rovzar, founder of Qualitas of Life Foundation, a nonprofit organization that facilitates the access of Hispanics to financial education programs and financial services.

- The plus: Kamvia (Indiegogo)

Kamvia Crowdfunder is housed in the site where you can find interesting projects that follow, which integrate or invest.

Kamvia focuses on the market for barter and trade in Mexico, there is a clear demand for a service that makes it easy and reliable and is offered as an online platform that provides reliable trucking and commercial service.

Kamvia develops within the niche of shared economy, so someone has what you want and not what someone wants to use it, this is an ideal network.

I think all of these campaigns were successful because of organization that the owners used to advertise it. It means that these campaigns complied fully with the components that crowdfunding campaigns must have to be successful as I mentioned before. Furthermore, I have highlighted that they have something in particular and it is that all of these were guided to social sphere and the environment, creating a positive effect on donors who gave economic contributions thinking that it would benefit the society.

All of these campaigns have followed the most important factors to have a success campaign and they reached their goals getting important tips. So, if we have a very good project but we don’t have the enough economic resources to develop it, the Crowdfunding is our chance to make real our ideas. If we keep in our minds the key success factors with the components of a Crowdfunding campaign it’s possible to get the success.

...