How to create a successful company and raise funds for your startup on a crowdfunding platform

It happens that a team of enthusiasts has an original and innovative idea, but there is no money to implement it. A good solution would be to attract funding on a crowdfunding platform.

We will give examples of successful projects on the Kickstarter and Indiegogo platforms, which at one time raised millions of dollars from an indifferent audience. Over time, these technologies have been replicated, so they no longer seem revolutionary, but once these ideas seemed explosive. Weigh it yourself. Among the projects that broke the jackpots on Kickstarter and Indiegogo in their time, Pebble Smartwatch is a smart watch with the ability to connect to a smartphone, Exploding Kittens is a board game, the idea of ​​which is to avoid exploding kittens. The Coolest Cooler – a multifunctional cooler with built-in speakers, a blender and a charger, Flow Hive – a unique system for collecting honey that allows beekeepers to collect honey without disturbing the bees, as well as Fidget Cube took the first steps in the popularity rating. – a small cube with buttons and switches for stress relief.

All or nothing – the specifics of Ukrainian crowdfunding as opposed to Western

If the seduced Western audience is ready to invest in devices that are distinguished by their originality and make life more comfortable for them and their pets, then Ukrainian crowdfunding platforms, first of all, have given the green light to public initiatives, social entrepreneurship and people who need help.

Donations collected through crowdfunding fed and warmed Euromaidan protesters. After the Revolution of Dignity, crowdfunding in Ukraine became a tool for collecting funds for various needs – from humanitarian aid to victims of the military conflict through such platforms as families.org.ua and People’s Project to community development and social innovations.

Yes, Spilnokosht is one of the most famous Ukrainian crowdfunding platforms that supports social, cultural and business projects. RazomGo is a platform that helps raise funds for various projects, including startups and charitable initiatives.

Crowdfunding in Ukraine works according to two main models. All or nothing: the author of the project receives funds only if it was possible to collect the entire required amount. The flexible system allows you to transfer the collected funds when a set percentage of the required amount is collected, usually the threshold is 50%.

By definition, crowdfunding is intended to support innovative products, technological startups, and new business ideas. The creation of educational programs, courses, scholarships and other initiatives aimed at the development of education may also be promising for sponsors. Of course, the progressive audience will not be left indifferent by the initiatives for environmental protection, waste processing, greening, etc.

What does it take to create a successful campaign on the Spilnokosht platform?

To create a successful campaign on the Spilnokosht platform, a clear and attractive idea that is unique and meaningful to your target audience is important. To implement the project, it is necessary to gather a team of like-minded people – people with different skills who will complement each other. The project should be described in as much detail as possible: goals, tasks, stages of implementation and expected results. It is important for sponsors to know exactly where their money will go. It is also important to offer sponsors attractive rewards for their contributions. These can be unique goods, services or experiences related to the sponsored project.

It is worth using all available channels to promote your campaign: social networks, blogs, mass media and personal contacts.  Openness and honesty with your sponsors will be appreciated not least. Regularly update information about the progress of the project and show how the collected funds are used. Consider the possibility of obtaining grants and cooperation with other organizations. This can greatly increase your chances of success.

How to create a successful campaign on the RazomGo platform?

To create a successful crowdfunding campaign on the RazomGo platform, it is important to describe what problem you are solving and what benefit your project will bring to the audience. An attractive project page with high-quality images, videos and a detailed description will help attract attention and inspire trust in potential sponsors. It is important to set an achievable financial goal and a reasonable time frame for fundraising. This will increase the likelihood that people will be ready to support your project.

Informing sponsors about the procedure for using funds, methods of active promotion, interactive interaction with the audience, interesting and valuable rewards for those who support your project will increase your company’s chances of success on RazomGo.

Falling on Pluto, or What projects raise money the most?

In Ukraine, crowdfunding more often attracts attention and support for cultural, social and charitable projects. That is, helping the needy, supporting medical initiatives, helping animals, etc. As well as the creation of films, theater productions, music albums, exhibitions and other cultural events. An example of crowdfunding support for a cultural event was the FALLING ON PLUTO project.

A few years ago, fellow volunteers invited documentary filmmaker Sashko Brama to a geriatric boarding house. Sashko decided to share his impressions of what he saw and heard from the residents of the nursing home. This is how the idea of ​​the theatrical performance “Autumn on Pluto” came about. This is an experimental interdisciplinary project containing a set of artistic practices connected by a complex theme: documentary film, performance, audio design, media art, puppet theater, etc.

The goal of the project turned out to be very clear and close to the audience. The author sought not only to draw attention to the topic of old age, but to create an environment in which people can feel the passage of time and age deeply, personally, realize their fears and, perhaps, overcome them.

The authors shared their experience of attracting project financing. “The team raised funds from various sources. The Lviv City Council promised us support. While this issue was being considered, we initiated a fund-raising campaign on the Common Fund, which became very successful – we managed to collect UAH 36,000 instead of the planned UAH 15,000. The project also received grant support from the British Council. A lot has been done, but these funds cover less than half of the necessary funding, so we decided to use the international crowdfunding platform Kickstarter. With her help, we plan to find not only funds, but also new connections and promote the project outside of Ukraine.”

Survivor’s error, or why some projects didn’t get crowdfunding support

A request for financial support does not always resonate with the audience of the crowdfunding platform. It seems obvious that projects that did not provide enough information on the platform about the purpose, plans and use of the collected funds can suffer a false start. Poorly designed project pages, lack of high-quality visual content and descriptions can scare away potential donors.

Projects with overly ambitious or unrealistic goals may raise doubts among potential sponsors. Ideas that are not actively promoted through social networks, mass media and other channels may go unnoticed. Of course, if the authors of the project do not respond to the questions and comments of potential sponsors, this can also reduce the level of trust and interest in the project.

Tatyana Morarash