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Did you know that almost all business enterprises are small ones? Small Business Administration (SBA) reported a whopping 33.2 million small businesses in the U.S., comprising 99.9% of all companies in the country.

Image Source: https://www.uschamber.com/small-business/small-business-data-center

As such, it’s a good idea to jump on the entrepreneurial bandwagon by launching your own startup. However, starting a business requires a huge capital outlay to keep it up, running, and fully operational.

Enter crowdfunding, a business practice involving raising small money from a large number of people. But how do you get them to fund your project or business venture? The answer is through social media outreach!

Don’t worry; This page covers the use of social media for crowdfunding. Learn how to maximize your startup visibility on crowdfunding platforms. Read on.

Jump right in: Balancing Social Media Outreach: Maximizing Visibility for Your Startup on Crowdfunding Platforms

• What Is Crowdfunding?
  
  • Types of crowdfunding
  • Best crowdfunding platforms for startups
• Why Leverage Social Media for Startup Crowdfunding
• Social Media Outreach: How To Boost Your Startup Visibility on Crowdfunding Platforms
• Summary and Key Take-Aways

What Is Crowdfunding?

Crowdfunding entails raising small amounts of money from several people to pursue a new project or launch a business. It involves connecting with various entrepreneurs and investors via social media channels and crowdfunding platforms. By doing so, you can get a pool of potential backers to finance your startup.

But how does crowdfunding exactly work? Here are real-life examples:

Oculus VR: Twelve years ago, the company collected $2.5 million on Kickstarter to create virtual reality headsets, significantly exceeding its $250,000 goal. Meta (previously Facebook) bought the company for $2.3 billion in 2014.

Image Source: https://techcrunch.com/2014/03/26/a-brief-history-of-oculus

M3D: The company raised $3.4 million on Kickstarter for its Micro 3D printer in 2014. The product is currently available at major retailers, including Staples and Amazon.

Image Source: https://technical.ly/software-development/m3d-printer-kickstarter-design-process/

Critical Role: In 2019, the live-streamed tabletop roleplaying game generated $4.7 million on Kickstarter in 24 hours for its animated special “The Legend of Vox Machina.” It exceeded its previous platform records, hitting more than $11.3 million.

Image Source: https://www.kickstarter.com/projects/criticalrole/critical-role-the-legend-of-vox-machina-animated

The 2008 financial crisis paved the way for the emergence of crowdfunding. Why? Banks tightened lending standards at that time, making it difficult for small businesses to obtain loans. This stringent protocol fueled the rise of crowdfunding.

Today, the global crowdfunding market is thriving, showing no signs of stopping or even slowing down. In fact, it’s projected to grow from $1.19 billion in 2023 to a staggering $4.41 billion by 2033 at a robust compound annual growth rate (CAGR) of 14%.

Image Source: https://finance.yahoo.com/news/global-crowdfunding-market-trends-worth-110000242.html#

Types of crowdfunding

There are different types of crowdfunding commonly practiced in the market. However, it’s important to understand what they are and how they work. This way, you can plan, strategize, and price your crowdfunding campaign.

Let’s take a look at the various types of crowdfunding below:

• Donation-based: Individuals contribute to your charitable project without expecting financial or material return.
• Reward-based: Individuals donate to your project or business in exchange for non-financial incentives like products or services, which they receive later. 
• Profit-sharing: Your company shares committed backers a portion of your income or revenue in exchange for immediate funding.
• Equity crowdfunding: Investors invest in your startup and acquire shares in your compan in exchange for such investments. It’s like buying stocks in the market. 
• Peer-to-peer lending: A crowd contributes money to your company in the hopes of being returned with interest. It’s somehow comparable to traditional bank loans, however, sourced from several investors.

Discover the different crowdfunding platforms to venture into below.

Best crowdfunding platforms for startups

While crowdfunding comes in various types, it also consists of readily available platforms. However, you should see which best suits your project or business venture, especially if you seek to launch a startup. Likewise, familiarize yourself with the crowdfunding regulations to ensure legal compliance and know what platform to select.

Below are some of the most popular platforms for crowdfunding best suited for startups and small businesses:

Kickstarter: Kickstarter started in 2009 and has financed over 250,000 projects, with over $8 billion committed. It is good for firms looking to raise funds and reach a large audience. However, it cannot be utilized to provide charity or equity incentives.

Image Source: https://www.kickstarter.com

Indiegogo: Indiegogo began in 2008 as a platform for independent filmmaking. However, the platform now covers many types of projects. It provides flexible funding choices, allowing campaigners to receive donations as they arrive, as opposed to Kickstarter’s all-or-nothing strategy.

Image Source: https://www.indiegogo.com

Fundable: Established in 2012, Fundable is an equity crowdfunding platform that connects businesses with serious investors. It is well-known for bringing together creative enterprises and reliable investors.

Image Source: https://www.fundable.com/

StartEngine: Founded in 2015 and directed by Howard Marks, StartEngine is a leading equity crowdfunding platform. It has raised more than $700 million. Non-accredited investors can invest up to 10% of their yearly income or net worth.

Image Source: https://www.startengine.com/

Social Media Outreach: How To Boost Your Startup Visibility on Crowdfunding Platforms

Using social media can increase your startup’s visibility on crowdfunding websites. These channels allow you to generate compelling content, run targeted adverts, and connect with various audiences. Ultimately, they can boost the number of supporters and visitors to your crowdfunding platform.

So, how do you start with your social media outreach for your crowdfunding campaign? Here’s how:

1. Define your target audience on social media

Identify the specific group of people most likely interested in your products or services. This process entails understanding their demographics, psychographics, and other key factors:

• Demographics: This factor includes vital statistics like age, gender, income, education level, and location. 
• Psychographics: This criterion delves into your target audience’s interests, values, attitudes, and lifestyles.
• Other factors: Other considerations may include social media usage patterns, purchasing habits, and unique demands or pain issues associated with your product.

By clearly defining your target audience, you can tailor your content and outreach approach to engage and convert potential backers.

Jesse Hanson, Content Manager at Online Solitaire & World of Card Games, recommends identifying your potential market for social media outreach. 

Hanson says, “Understanding your target audience is essential for developing content that resonates and encourages engagement. Knowing who you’re communicating to helps you create messages that not only attract attention but also incite action.”

2. Choose the right social media channels

Choosing the right social media outlets is crucial for efficiently reaching your intended audience. As you are aware, each channel has its own set of features and demographics. Therefore, select the ones that best match your audience’s preferences and behaviors to maximize your campaign’s impact.

Below are social media channels to choose from:

• Facebook: FB is perfect for reaching a large audience and provides numerous advertising alternatives for targeting specific demographics.
• Instagram: IG is ideal for creating visually appealing content and engaging younger audiences via stories, posts, and clips.
• X (Twitter): X is ideal for real-time updates, conversations, and creating a community around your campaign.
• LinkedIn: LinkedIn is best for B2B campaigns, professional networking, and targeting a business-oriented audience.
• YouTube: YouTube thrives with long-form video content, tutorials, and storytelling, allowing you to display your product and campaign in detail.
• TikTok: TikTok is highly effective for creating short, viral videos and reaching a younger, trend-savvy audience.

Thomas Medlin, Co-founder at JumpMD, suggests selecting the right social media channels for your crowdfunding outreach. 

Medlin argues, “Choosing the appropriate social media platform can make or ruin your campaign. It’s all about meeting your target audience where they’re most active and engaged. Ultimately, focusing on the most appropriate channels allows you to adjust your content and interaction methods for successful outcomes.”

3. Create and post interactive content

Creating and sharing interactive content is critical for engaging your target audience and promoting involvement in your crowdfunding campaign. For example, polls, quizzes, and live Q&A sessions can attract viewers’ interest and drive deeper participation. They can entertain and inform your audience, increasing their likelihood of supporting your campaign.

Below are content types to produce and publish for your crowdfunding campaign:

• Text: Feature compelling questions, surveys, or calls to action (CTAs) that encourage your readers to comment, share, and participate.
• Images: Consider images like infographics, memes, and behind-the-scenes photos. They are visually appealing and can elicit shares and emotions.
• Videos: Post video clips, such as tutorials, product demos, and live streaming. These offer dynamic and engaging methods for engaging with your audience and promoting your campaign.

Tom Golubovich, Head of Marketing & Media Relations at Ninja Transfers, cites the value of engaging content for social media outreach. 

Golubovich explains, “Interactive content is a game changer for increasing engagement and creating a dedicated community. It transforms passive viewers into engaged participants invested in your path. Ultimately, they can make your crowdfunding successful, making your startup up and running.”

4. Implement your crowdfunding campaign

Launching your crowdfunding campaign is a key step in securing money. Integrate your social media activities with the crowdfunding platform to increase reach and momentum during the campaign. Consistent updates and compelling content are vital for keeping backers informed and excited.

When implementing your crowdfunding, here are the crucial steps to take:

• Integrate social media with crowdfunding platforms. Linking your social media profiles to crowdfunding websites can improve accessibility and visibility.
• Offer teasers, sneak peeks, and updates. Sharing exclusive previews and regular updates with potential funders can keep them interested and build anticipation.
• Produce and publish content pieces. That lets you communicate your story and emphasize the significance of your initiative.
• Reach out to potential backers. Contact them directly with personalized messages and targeted outreach to guarantee commitment and establish support.
• Collaborate with committed funders. Working with early supporters helps spread your message and lets you use their networks to reach a larger audience.

Ian Sells, CEO of Million Dollar Sellers, believes, “A successful crowdfunding campaign requires a deliberate combination of planning, promotion, and ongoing connection with your backers. However, these steps are easier said than done. Therefore, you must pour out your soul and heart in your campaign for it to be successful.”