How does a startup raise money with crowdfunding? What to do?

How to create an effective crowd sourcing funding campaign

You have decided to raise money with crowdfunding, what next? Before you log on and start soliciting you need to make sure you have put all the steps in place to encourage your investors to donate.

  • Check out all the different crowd sourcing sites to see what they do and do not offer.  Choose the best platform to suit your project and read up on it to make sure you are operating within their rules and requirements.
  • Plan your marketing, craft your crowd sourcing campaign to appeal to your ideal investor and carry it through consistently to all your social media.  Yes, you need facebook, twitter and instagram accounts to support your campaign effectively! This might mean making a campaign that is colorful, or tricky, or even shocking, but it is important to create a distinctive voice for your product or service, to stand out from the rest.
  • Rewards for your investors
    Think about rewards. You need to offer bonuses or rewards to encourage investors to contribute larger amounts.  Think about the type of product or service you are trying to get funding for and use that as a basis. For example, a lingerie startup may try something like ‘for a $5 donation our undying gratitude and a mention on our list of sponsors on our website’, ‘for $50 all of the above plus a free pair of our signature briefs’, ‘ for $500 all of the above plus we will name a new lingerie design after you.’
  • Don’t forget your video, your product, pictures, your website
  • If you are preselling your product to your investors; understand how many units you need to sell to achieve your crowdfunding goal
  • Your follow through
    People love rewards but the key is to make sure you follow through.
  • Check with your accountant and countries laws regarding taxation and donations – It’s no good to run afoul of the law just as you start you new venture.


Once you have a watertight crowd sourcing campaign to raise money with crowdfunding, set up your social media and constructed good rewards, you are on your way.

Good luck!




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