With VC Money Slowing, Crowdfunding Is Increasing—Here’s How To Have A Successful Campaign

Becky Center is the CEO of Indiegogo the crowdfunding platform that unites innovators with early adopters.

An entrepreneur’s journey is never easy. Taking the leap to start your own company is heightened by the fact that most are passion projects that have been in the ideation or dream stage for many years.

Attracting funding is one of the most intimidating aspects of growing your startup, and traditional paths to funding, such as venture capital financing or small-business loans, are not always accessible. This is especially true for first-time founders and even more so for ideas that may be considered niche.

Crowdfunding was born to fill this gap but also as a nod to fandom and enthusiasts, giving the people who will use, watch or read the final product an opportunity to help bring it to life. And it’s on the rise, with the global crowdfunding market projected to reach $6.8 billion by 2031.

The genesis of online crowdfunding was anchored in music, an industry with millions of self-empowered, passionate fans who have a wealth of influence. According to the BBC, one of the first known instances of online crowdfunding was in 1997 when British rock band Marillion raised money directly from fans to finance their U.S. tour.

While crowdfunding has remained popular since it was first commercialized, the business model is seeing an increase in use across broad industries marked by a few driving factors. Since the pandemic, it has been well documented that burned-out workers are reprioritizing how they spend their time, resulting in new attitudes toward work.

This burnout combined with massive Big Tech layoffs has reignited entrepreneurialism, whereby a new crop of entrepreneurs are pursuing their dream of starting their own business. Additionally, according to CB Insights, global investments into startups declined by a third in 2022, leading many creators and founders to crowdfunding to bring their ideas to life.

For those considering taking the leap into entrepreneurship, I’d like to share some insights on elements that make for the most successful crowdfunding campaigns. While the ideation, prototype and materials sourcing phases are their own beast (we’ll save those recommendations for another day), the success of a campaign can be boiled down to two essential elements: storytelling and tools.

READ MORE 👁️👉🏾 @ FORBES https://www.forbes.com/sites/forbesbusinesscouncil/2023/09/08/with-vc-money-slowing-crowdfunding-is-increasing-heres-how-to-have-a-successful-campaign/?sh=6fd9d1d65f1f