How to make your startup’s crowdfunding campaign a hit

Melissa Leong | September 2, 2014 1:53 PM ET,

“Win the crowd and you’ll win your freedom.” – Gladiator

With millions of dollars available through infinite contributors, crowdfunding sites have revolutionized the way small businesses get up and running. However with increasing competition, creating a campaign that will stand out from the rest of the noise has never been more challenging.


“There’s no banker there. There’s no angel or [venture capital],” Ruth Hedges, a U.S.-based crowdfunding industry leader and chief executive of Crowdfunding Roadmap, says. “It’s you and your self-determination and I say go for it. Do the hard work. Build the social capital. Create the material.”

Kickstarter has channeled more than US$815-million from 4.9 million backers to nearly 50,000 projects since 2009, a 2013 World Bank report said. The same report estimates that households in the developing world could provide up to $96-billion a year in crowdfunding investments by 2025.

That’s a lot of money that could be at your disposal. But crowdfunding isn’t a well of money. A lot of people don’t raise as much as they hope to.

“Historically, 80% of crowdfunding dollars came from one friend away from you,” Ms. Hedges says. “There’s a small percentage of crowdfunding campaigns over $100,000. The majority of people who crowdfund raise less than $5,000.”
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