Previously, we discussed how you could raise funds despite the COVID-19 environment. With that, Kickstarter is still the go-to platform for most crowdfunders today. However, did you know that the success rate of Kickstarter campaigns is only at 38%?
Crowdfunding Without Kickstarter
There are Indiegogo and a newly launched Pledgecamp in the blockchain space, except that the first is saturated with non-tech projects and supporters, and the latter introduces Blockchain which could be intimidating to both campaigners and supporters.
Fundraising without an established platform is not impossible: We know the success story of Lockitron which founders were rejected by Kickstarter and they ended up building an entirely new website to raise funds successfully. This is inspiring and promising but only possible if your team is fully capable of crafting a fully functional crowdfunding website and marketing it on your own. But what are the chances? As the crowdfunding market becomes increasingly saturated, there is a need for a platform that is fully focused on crowdfunding for technology-specific projects – that means to support and showcase tech projects effectively with technology enthusiasts as supporters.
If you’re a start-up owner, a designer, or just somebody looking to crowdfund a tech-related project, keep reading.
What Makes or Break Your Crowdfunding Campaign
We’ve helped blockchain projects raise funds of up to millions and develop business strategies with just a mere proof-of-concept. That’s where the Concordia Ventures team accumulated experience from – assisting blockchain incorporated proof-of-concept projects to raise funds. As much as blockchain technology seems like an intimidating subject when it comes to fundraising, it is an appropriate comparison to your tech campaign if you have limited resources and would require crowdfunding to proceed with production or expansion.
Without Kickstarter, it still leaves you with plenty of fundraising choices that are equally easy to maneuver and structure your campaign around to display as intended. Reaching the right audience, however, will be key to your success.
Reaching the Right Audience
Platforms such as Kickstarter and IndieGoGo have a vast number of backers accumulated across the years for countless but vertically varied campaigns. This means that instead of showing your campaign to a huge pool of tech backers who are interested in ‘new audio sunglasses’, your campaign is shown to thousands of users who may only be interested in art projects. While the potential of succeeding on Kickstarter is huge, a whopping 62% of campaigns were unsuccessful on Kickstarter.
To ensure that the crowdfunding projects listed are catered to the demands of our supporters on the platform, our supporters are technology enthusiasts who have a keen interest in new technologies and transact in cryptocurrencies – which we will go into detail in our next article on the cryptocurrency market and how Concordia Ventures bridges cryptocurrency and traditional crowdfunding markets.
Controlling What and How Supporters See
Marketing teams across businesses have seen a shift in focus to content marketing with social media platforms investing in content-driven algorithms becoming prominent today. The digital age has pushed people to consume content like never before – from copywriting to creatives and every single detail matters. Having a platform, like Concordia’s, that crowdfunders can directly make copywriting and creatives adjustments on, ensures that the flow of your campaign is structured and delivered as intended.
We allow project creators to decide when and where to change their information, allowing them to have flexibility on how they want their content to be seen. Project creators will be able to directly make edits from the creator dashboard.
Share of Voice against Competition
It’s true that healthy competition among campaigns promotes a better quality of projects. But if you are listed on Kickstarter, you are competing with at least 45,000 active projects at any one time. You’ll have to be one of the lucky 17,000 projects to score a successful campaign – while it may look like a huge possibility but this is a mere 38% chance of success which is highly dependent on your marketing strategy and budget.
Knowing Your Marketing Costs and Hidden Fees
Whether it is marketing a blockchain or non-blockchain project, the average amount spent on marketing fees to launch a campaign is anywhere from 5-20% of the target raise. Research has also shown that marketing does indeed drive raises that “a day-to-day marketing campaign translates to three times the amount raised” with importance on social media marketing. Have you ever scrolled through Facebook and seen Kickstarter campaign videos that are branded with other pages such as ‘Hype Products’ and ‘Innovative Tech’? The truth is that listing on Kickstarter is simply not enough to guarantee success. This is why we have seen a surge in start-ups revolving their marketing business models around Kickstarter – from referral program managers to campaign-specific marketing companies.
Campaign Marketing Boosters
Jellop and Funded.Today are just some examples of referral program companies. To integrate such add-ons to your Kickstarter campaign, you would have to sign up for their services ranging from US$29/month. Marketing companies such as Boost Your Campaign which strategizes your launch would start anywhere from US$1,500. In fact, most crowdfunding marketing companies do not show their prices upfront. Bait and switch is a commonly used strategy by some marketing companies to onboard desperate start-up owners looking to raise funds with a too-good-to-be-true offer. While marketing is imperative to the success of your campaign, it does not necessarily mean that these are your only options. The key is to find a platform that already has campaign-specific marketing invested with stringent quality control of listed campaigns to guarantee good user retention.
Concordia’s supporters will be constantly engaged in the platform with features such as ‘Discover Projects’. The engagement point system ensures users are incentivized to vote for or against upcoming projects. Think Tinder – swiping left and right on the project, instead of a potential date, to determine the popularity of a particular project. The selected popular project will then be welcomed onboard the platform which also helps the creators build a new community and reach new and targeted users that they would otherwise not have access to with Kickstarter. This feature also helps crowdfunders to have a gauge on interest in their project before launching it fully and should it not be as anticipated, they can then take the project to tweak it and find out more.
At Concordia, we believe that your success is our success.
If you are interested in listing your project or finding out more about our platform, drop us an email at firstname.lastname@example.org. We are only accepting technology-related projects at this point in time for our launch campaign. We will be launching our desktop and mobile versions for iOS and Android soon. Subscribe to our newsletter to stay updated with our launch date!