Crowdfunding is a process in which a lot of people pool in small amounts of money in order to raise a large amount of money for any particular cause. Crowdfunding runs on the crowd, which is the most important element to any campaign. Crowdfunding has become very popular in many parts of the world and is catching up in India too. Crowdfunding is making headway into the Indian market as more and more Indians are losing their inhibitions about publicly asking for money.
There are four major kinds of crowdfunding. Donations based and rewards based crowdfunding are useful for people who run not for profit campaigns like medical treatment, education for all etc. Equity and debt crowdfunding are for people who run campaigns for profit motives. Fundraisers in India are most commonly run for non-profit organizations but profit fundraisers are also catching up. Equity crowdfunding is on hold in India but it is expected to catch up once the regulations change.
If you want to raise funds that are for your profit making initiative, here are a few guidelines.
- Choose the right crowdfunding site. There are many crowdfunding sites in India. You need to choose one streamlined towards the kind of campaign you want to do.
- Write a good fundraising pitch. Your campaign is judged by investors through your pitch. If you pitch is well written a lot of the work is done. Use images and videos for your pitch.
- Your video is meant to summarize your text so that potential investors do not have to read the entire pitch. Make the video short and engaging. Try to get the audience’s attention in the first few seconds. Hire a professional to make your video.
- If you have led other crowdfunding campaigns before, make sure that reflects in your pitch. Your investor should know that you have experience in the field.
- Put your best foot forward. Even if you do not have erstwhile crowdfunding experience, emphasize on everything else you have done.
- Last but not the least, make sure that your idea is innovative. If it is already out there, explain why it is better than its competition.
For initiatives which do not make money, it is far more important to make sure that the cause is well represented. Here are a few tips to raise money for non-profits.
- Choose the right platform which has experience in your area of fundraising.
- Write a clear fundraiser in which you detail exactly what kind of project you want to undertake. Make sure the fundraiser has pictures and videos to go with the text.
- If you have worked with crowdfunding before, make sure that you put that up in your fundraiser. It makes you more experienced and hence more trustworthy.
- Know who all are willing to raise money for you. Make a team who can help you with the campaign. Publicity is really important for a fundraiser. Your fundraiser should be able to tap that space.
- Make sure that your team posts as much as possible about the campaign on all social media platforms. Make a separate poster for Instagram and WhatsApp to be shared with the link to the fundraiser.
- Target the people who are likely to give you money. People who have posted on social media about the cause you are working on are your allies. Write to these people asking for donations.
Crowdfunding is a low-risk, low-investment way of raising money. It can help with a lot of causes as well as with profit making schemes. It should be used well.