The past few years have seen an explosion in crowdfunded companies and as a result, both rewards crowdfunding sites and equity crowdfunding sites have grown in popularity as well. There's now a crowdfunding site for just about everything from yoga studios to medical devices. But what makes a crowdfunding website effective?
...crowdfunding is marketing, plain and simple. If the idea of marketing to investors sounds foreign, consider the fact that it’s been the essence of fundraising since the dawn of time.
...good fundraisers are good marketers. And like any good marketer, successful entrepreneurs consistently start with a very focused marketing plan. They begin building their target lists well in advance of their crowdfunding campaign. They reach out to media outlets before they launch. They rally their early backers to get a surge of support on the day of their launch. It’s well planned, and not at all incidental.
... crowdfunding websites are being effectively used to capture different types of support simultaneously.
In days past, there were campaigns to drive affinity support (also known as charity), campaigns to drive a pre-order (video games, gadgets) and campaigns to solicit investors. Now all three can be done at the same time, which creates a huge new opportunity for entrepreneurs.