Five Things To Consider When Working On A Crowdfunding Proje

Five Things To Consider When Working On A Crowdfunding Proje

From Zulfqar Chachar

Successful crowdfunding project related to technology startups requires a very specific plan and the proper communication to attract attention. We have some suggestions that might help anyone create a well-structured ...

Support this campaign

Subscribe to follow campaign updates!

More Info

Successful crowdfunding project related to technology startups requires a very specific plan and the proper communication to attract attention. We have some suggestions that might help anyone create a well-structured crowdfunding plan for their technology project:

Outline Your Goals Very Clear

As a technology early adopter who is interested in new IT projects, I must be inspired by your idea, but I also need to see that it is achievable. So, do not focus on explaining how great and unique your project or technology product is. Tell me that it is unique and why it is unique in a few sentences and then explain to me what you want to achieve and outline the steps. I want to see a summary of your plan at the very beginning.

Do not forget that, this is a presentation that is focused on crowdfunding. This means that in addition to clear and achievable goals for your crowdfunding campaign, you need to tell me "Why me" and other people like me should invest in your project and not any venture funds. Why do you think that the small financial contributions made by many people would work better than finding one large investor?

Make sure that you have set a reasonable funding target and have explained very clearly the purpose of the funds, and what backers can expect in return.

Crowdfunding Means People Not Corporations

If you are planning to crowdfunding and want me to donate, tell me who is involved in the project. Who are you going to pay for technology services, for example, if you need a US dedicated server or a virtual, cloud-based environment to host your project, do not suggest that you will sue AWS, Azure, or any other major corporate provider. If you are asking individuals and small businesses to help, you'd better use SMB service providers.

So consider your vendors and suppliers carefully. Crowdfunding is an excellent way to finance your project, but it is a decentralized way to fundraise. If you use a decentralized method of fundraising, make sure you are spending either with SMB providers or with decentralized organizations that deliver the technology products and services you need.

Good Budget And Adoption Of Digital Currencies

This is something one must not underestimate. If you asking people to give you their money you need to present them with a good, detailed, and realistic budget. The expenses must be well-justified and you must not waste people's money. For example, a corporation might want to spend $50,000 - $100,000 for a website that would impress anyone. The digital presentations of your project however must not be a significant expense.

Why, does someone give you money if you want to spend $5,000 or $10,000 on the front-end design of a website for example? You are asking backers to invest in technology, not in vanity. In fact, why do I need to give money to a technology project, that has a team whose members cannot create their website themselves and need to hire someone? So, you should be prepared to budget and spend money only on things that bring value to your project's backers.

Consider also accepting cryptocurrencies in the process of crowdfunding. Digital currencies are natural payment methods in the digital economy. However, many people still see them as assets. So they might be willing to invest their crypto into your project. So, you should probably use cryptocurrencies for technology services. Buy server with crypto to host your application for example and if possible choose any decentralized and new-generation It infrastructure, rather than any traditional provider. This would make your project attractive to more people.

Solid Arguments or Compelling Story?

I would rather go for "Solid Arguments" rather than trying to write a "compelling story". Why? Well, if you are launching a new technology project you are probably not a writer, at least probably not a good one. As someone who donates or invests, I want to fund a new project that has a good chance to succeed. For that, I do not need to hear magical words or to bet on someone who can conceptualize well. I need to see a reason and solid arguments that lower the risk of your project failing.

So, keep it technical and explain as much as you can the problems that your project will solve, and innovation that brings, and how people like me, who are willing to put some money into a new technology will benefit. Remember that you do not speak to people who have enormous investment resources. You appeal to many people who can make a difference by donating a few hundreds of dollars. The average amount people give through crowdfunding is around $600. So, be realistic.

One of the solid arguments that would make me fund your project is its value as an intellectual property. it is a good idea to include expenses for registering a trademark or even to fill for a patent. So find anyone who provides patent preparation services for technology projects and companies and consult with them about the possibility of getting a patent for your invention. 

Great Visuals

While you do not need a professional writer to explain your crowdfunding project, you definitely need high-quality visuals. The visual elements of a crowdfunding plan are probably the first things that your project's potential backers see. So these elements will impact their decision to support your project or not.

This includes a video of the best possible quality and some good images. Spend some money on shooting your own photos or designing your images, rather than buying any from stock photo websites. it is all about your personality, your team, and your idea. If you want regular people like me to fund your project, then show us your creativity, your personality, and your expertise on various matters related to your project.

These five suggestions should help you to create a better crowdfunding project. I also suggest you spend more time reading and speaking to people and organizations who have successfully funded their new ventures through popular crowdfunding platforms.

Campaign Wall

Join the Conversation

Sign in with your Facebook account or