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How to Raise Crowdfunding for your Business

by Hall T. Martin

As we increasingly use the internet for our business, it’s only natural that we use it to raise funding for our business. Crowdfunding has been available for some time now but is coming into mainstream use for entrepreneurs to raise funding for startups and small businesses. Essentially, it is sourcing funding through a web portal. The amount of funding comes in smaller increments but from more investors. Currently, forty percent of crowdfunding projects succeed.

To increase your chances of success avoid these five mistakes:

  1. Not making the pitch compelling enough – your pitch needs to show great people doing great things. Mediocre projects don’t raise funding.
  2. Not promoting the pitch outside of the crowdfunding site through blogs, emails, newsletters, etc.—you need to leverage your network of friends, family, and contacts to get the word out.
  3. Not demonstrating a detailed plan—your plan needs to include financial projections showing how the funds will be used.
  4. Not asking for realistic amounts of funding for the project – over or underfunded plans are usually not funded.
  5. Not responding to questions nor asking for feedback—prospective backers will ask questions and offer feedback. You need to respond to both in a timely fashion.

About Hall T. Martin