Lunch & Launch Recap: Crowdfunding Done Right

Written by Innovate New Albany@InnovateNA10 years ago

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Business owners looking for an innovative way to raise money for a product, service, or cause can do so with a technology-based method of fundraising called crowdfunding.

According to Forbes.com, crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people, typically through the Internet.

Ryan McManus, president and CCO of ContentVia, gave an informative presentation on crowdfunding to entrepreneurs and business owners at Innovate New Albany on January 23. The presentation was part of SunDown RunDown’s monthly Lunch and Launch event series.

Ryan’s presentation centered around how crowdfunding can be used to launch a new product. It allows you to get validation of your product, because the contributions you receive through your campaign prove there is a group of people who believe in you, your product, and your team. Crowdfunding helps you to obtain funding and secure your first customers.

Ryan said you should not launch a crowdfunding campaign to raise seed money or to make a profit. He emphasized the importance of having a solid plan, and allowing two to three months to prepare for the campaign.

The foundation of any product launch campaign begins with the following essentials:

• branding
• a website
• a customer database
• a PR strategy
• an Explainer video
• an active social media presence

Ryan advised the group not to start a crowdfunding campaign until you have a prototype, you know your costs and timeline, you can dedicate at least one person to manage the campaign 40+ hours a week, and you have your goal guaranteed. You must also do something exceptional that makes your campaign stand out above the rest.

He discussed three types of crowdfunding platforms – Kickstarter, Indiegogo and Self Starter/DIY – and the pros and cons for each.

Ryan also outlined the anatomy of a successful campaign, a crowdfunding video formula, and the cost of crowdfunding.

As a first-hand case study, Ryan referenced his agency’s involvement in the Defender 24/7 crowdfunding campaign. He provided insightful information about why they chose a particular platform, what they did before they launched, and the lessons they learned. His Defender 24/7 crowdfunding campaign was a success. It reached its goal within six hours.

Ryan concluded his presentation with a discussion about “life after crowdfunding.” Since crowdfunding is an event, you must have a plan for what will happen after it’s over. You’ll want to continue to communicate with your contributors about your progress and updates. A crowdfunding campaign is a badge of honor, which shows the dollar amount raised and the number of individuals that believe in your product.

For more information about crowdfunding or the Defender 24/7 crowdfunding campaign, visit ContentVia’s website or contact Ryan at rmcmanus@contentvia.com.

Innovate New Albany, the city’s incubator for technology startups, entrepreneurs and small businesses, features 16,000 square feet of space within the New Albany Business Park’s Signature Office Building, 8000 Walton Parkway.