About Crowdfunding: Advice from the Experts and the Experienced

By Karen Utgoff

Courtesy of Wild Rumpus New Music Collective

Courtesy of Wild Rumpus New Music Collective

Crowdfunding is a tantalizing vehicle for overcoming the funding gap for a wide variety of endeavors including arts organizations, new products/services and entire companies. The Kauffman Foundation offers two highly informative videos that give the 50,000-foot summary as well as the view from the trenches.

The first video is 90-minutes long crowdfunding primer (you won’t miss a thing if you fast forward through the first 4 minutes and 30 seconds) and includes:

  • An overview of the crowdfunding space from Jase Wilson, founder of Neighbor.ly
  • The story of their successful Kickstarter campaign from Trellie co-founders Jason Reid and Claude Aldridge
  • Data-driven insights on Kickstarter project practices from Nate Allen, founder and CEO, at the data visualization studio 4 First Names

Key takeaways:

  • The money is a bonus. The opportunity to build awareness and visibility as well as to engage with fans and/or customers is equally or more valuable.
  • Effective marketing is crucial. You need a plan to bring the crowd to your project. It will be hard work.
  • Conducting a crowdfunding campaign will take more time and work than you expect.
  • Pick the platform based on your project, needs, and target crowd.
  • Be mindful of the work that will be required and costs that will be incurred to fulfill incentives, meet obligations, and communicate with backers if your campaign is successful.

The second video on “How to Raise $1 Million in 30 Days” features Indiegogo founder Slava Rubin. He describes elements that are believed to be important in building successful crowdfunding campaigns based on Indiegogo data.

(c) Copyright Sarah Concannon. All rights reserved. Used with permission.

(c) Copyright Sarah Concannon. All rights reserved. Used with permission.

I’m very appreciative that the Kauffman Foundation has posted both of these. They shed more light than heat on crowdfunding as a potentially valuable resource for bridging the funding and awareness gaps that so many emerging businesses, arts organizations and non-profits face. As such, they are must-see material for anyone considering going the crowdfunding route on the innovation trail.

Finally, a big shout out to two of my favorite Kickstarter campaigns:

Congratulations to both on their successful campaigns.

Gap Files 2

© Copyright 2014 Karen Utgoff. All rights reserved.

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