Download - How to Get Money through Crowdfunding
HOW TO GET THE MONEY YOU NEED
THROUGH CROWDFUNDING based on best practices presented by
Hall T. Martin, Director Texas Entrepreneur Network
What is Crowdfunding?
² A new source of capital ² Sourcing funds for a startup through the internet ² Funding comes in smaller increments but from more investors
HOW DO YOU GET THE FUNDS?
Rules to Play By
Answer the questions: ü Why are you unique and worth funding? ü What makes you interesting enough to cut through all
the Internet noise and be seen and heard?
Develop a Great Idea and a Great Team
Rules to Play By
ü Engage your network to start ü Leverage your own network. Only 2% of the
funding comes from outside your network ü Develop and run a broader PR campaign
Understand Your Network is Your Greatest Asset
Rules to Play By
ü Show how the funds will be used, in detail ü Make the plan look realistic and achievable
Understand that You Must
Demonstrate a Detailed Plan
Rules to Play By
ü Enough funding to accomplish the project ü Asking for the right amount shows you know
what you’re doing
To Get Funded, Ask for a Realistic
Amount of Funding
Rules to Play By
ü Ask for feedback ü Respond to questions quickly and with
competence ü Start a dialog and then build relationships with
investors
Remember Communication is
Key
HOW DO YOU PLAN A GOOD CAMPAIGN?
Planning Phase: 3 Months Pre-Launch
ü Visit Crowdsourcing.org and talk to others to find the right platform for your idea
ü Think about who would fund your project, and where they’d be looking for projects like yours
ü Consider the platform’s requirements and benefits
Find an Online Platform
Planning Phase: 3 Months Pre-Launch
ü Show yourself--introduce your name, position, and company
ü Show the product/concept so people get it ü Follow up with the competitive advantage, target market,
intellectual property, and the team ü Talk about how much you are raising and how the funds
will be used ü Close with a Call to Action ü Keep it short-- no more than 2 to 3 minutes ü Open with an attention getting line ü Show passion and enthusiasm ü Use high quality audio ü Avoid distracting backgrounds and noises
Prepare Your Pitch Video
Planning Phase: 3 Months Pre-Launch
ü Write a 5 word tag line ü Write a 250 word description of the deal
including: • What it does • Why it is important • How you will accomplish it • What is unique about it • How much funding is required
Write a 250 Word Description
Planning Phase: 3 Months Pre-Launch
ü 50 to 100 word description of yourself ü Demonstrate your capability and experience
Write Your Biography
Planning Phase: 3 Months Pre-Launch
ü Develop an Executive Summary/Pitch Deck ü Setup blog/Facebook/LinkedIn/Twitter pages ü Develop an Updates plan
• Product developments • Team news • Fund raise status • Customer traction
ü Prepare your network • Identify core & secondary network contacts • Setup a weekly mailing schedule • Identify broader media targets for PR
Prep Your Other Materials
Planning Phase: 3 Months Pre-Launch
ü Raise 20% of your funds target before you launch. This will
help you know if your idea is fundable. Practice your pitch and refine pre-campaign.
ü Consider breaking the campaign into smaller mini-campaigns and using different models for Crowdfunding.
ü Set a campaign that lasts 30, 60, or 90 days. Consider the season: How many people will you actually reach in, say, December?
Set Your Timeline
HOW DO YOU RUN A GOOD CAMPAIGN?
Launch Phase: 30 – 90 Days
ü It’s a full-time job that requires your interaction ü Follow up promptly on emails about the campaign ü Monitor the campaign mailings ü Adjust the product, pitch, and program based on feedback ü Create and adhere to an updates calendar
Remember, YOU are Running a Campaign
YOU GOT THE MONEY, NOW WHAT?
Post Campaign Phase: One Month
ü Fulfill the promises you made ü Finalize documents ü Remember to thank all those who supported you
Follow-Through with Gratitude
GO GET ‘EM, SLUGGER!
Thanks to Hall Martin from the Texas Entrepreneur Network for the content of this presentation. If you’d like a presentation designed for you, contact me, Dawn Weathersbee, at [email protected].
