Why do people donate to crowdfunding projects?

We are funny with money

I always ask participants at my crowdfunding training sessions what project or venture would they give £10 or £50 to make happen.  Though the money is virtual few groups give any away.

donate now

what encourages them to donate 

  • an exciting or new venture that captures their imagination
  • something that wouldn’t normally get the money

 or the opposite

  • one that’s worked before and tried somewhere new – it should work

That shows people have very different attitudes to campaigns – what does your crowd think?

and also they want to

  • benefit in some way
  • see the social benefits
  • like the person behind the project – enthusiastic, confident, authentic
  • know the project fits with their values

and most important a personal connection! 

What three things do your investors look for in a startup (equity or donations)

  1. The team behind the idea and their story
  2. A history of executing effectively
  3. That the founders have taken the idea as far as they can strategically and financially
  4. and then – the quality of the idea

 What acts as a barrier to giving away their money

  • unsure about the credibility of the person or group
  • have they done the market research to find an audience
  • nothing in it for them
  • how will they be accountable
  • do they have a plan
  • what’s the risk the project won’t happen

So ensure you have good rewards and  evidence your experience, credibility, your plan. Convince them that if you get the money the project will happen and that they will know about it.

Make a likeable video – involve your audience with your enthusiasm. And be thankful – you are asking individuals for money.

crowdfunding donors

What three things do your investors look for in a startup

  1. The team behind the idea and their story
  2. A history of executing effectively
  3. That the founders have taken the idea as far as they can strategically and financially
  4. and then – the quality of the idea

Would you give money to someone else’s crowdfunding project?

If not … should you ask others to give to yours …

Just a thought!

Unlike going for grants where you know there is a pot of money available there is no money out there waiting to fall into your lap. There isn’t a crowd waiting to donate to any project. There may be a few individuals who donate on a  regular basis but they are few are far between.

You have to find, connect and continually engage with your crowd. Starting with the people closest to you then working out to those who have an indirect connection with you, the project theme, the area or venue.

Comments
2 Responses to “Why do people donate to crowdfunding projects?”
  1. Agree people have to feel engaged. Crowdfunding regulated by FCA however, tends to be so hedged about with warnings that the £10 investor gets put off. It would be good to have a fast-track (investors putting in under £100) that allows a speedy completion of the investment with a disclaimer that investors agree to. Women Outside The Box festival of female entrepreneurship is raising money on seedrs.com to grow an online community and ultimately run festivals in other regions. I’d be interested to know what investors say about fast-tracking/warnings.

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