Category Archives: Venture funding Best Practices

How to Crowdfund for Your Next Venture

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NCFA Guest Post | February 28, 2018

Crowdfunding is a great new way to raise the funding that you need for your next venture, whether you are hoping to start a small business of your own or you are working on an artistic project like a new album of music with your band. But how can you go about crowdfunding to make sure that you are doing it right and that you are raising the highest amount of money possible? Keep reading to discover a few helpful tips that you can put to use right away.

Consider Getting Legal Protection First

When you set up a crowdfunding campaign, you will be putting your ideas out there in order to let people know about what you are planning on doing. But once you put those ideas out there in the open on the World Wide Web, they might be stolen. People might take your ideas and run with them so that they can then make profits on your ideas without your consent. So, one of the first things that you should do is seek advice from a lawyer who has attended a program like that offered by USD Law School. In this way, you can rest assured that you will be getting the best and latest information on how to protect your creative aspirations. You might be told that you should copyright your ideas or apply for some sort of patent, as a copy of examples. The goal here is to protect your intellectual property before you launch your crowdfunding campaign.

Get Your Friends and Family Involved

You will need to find creative ways to market your crowdfunding campaign once it is up and running. But the first people that you can turn to for help in spreading the word are your friends and your family. Do not hesitate to get them involved so that they can enthusiastically share the news about your upcoming venture and your need for financial assistance to get the ball rolling.

See:  The digital transformation of learning: Social, informal, self-service, and enjoyable

Your existing network on social media is also a great way to spread the word, as they can encourage their friends and family to get involved as well. The more people that are talking about your campaign and sharing the link to it, the better your results will be right from the start.

Give Great Rewards

Make sure that you set up tiers for potential donations that people can give, such as $5, $10, $20, and so on. With every tier, provide some kind of perk or reward in exchange for the donation. In this way, people will be even more motivated to give their money to you because they will be getting something substantial in return. Just be sure that the rewards are really interesting, relevant to your project, and worthwhile to donors.

Stay Active and Keep People Updated

Finally, stay active on social media and keep updating your campaign page as you have news to release about its progress. Your donors will appreciate the fact that you’re keeping them in the loop, and the more you promote your campaign, the more donors you can find.

With these tips, you could launch a successful crowdfunding campaign for your next venture and reach your goals in no time.

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The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a national non-profit actively engaged with social and investment crowdfunding, alternative finance, fintech, peer-to-peer (P2P), initial coin offerings (ICO), and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, networking opportunities and services to thousands of community members and works closely with industry, government, academia and eco-system partners and affiliates to create a vibrant and innovative fintech and online financing industry in Canada.  For more information, please visit: www.ncfacanada.org

 

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Jan 8, 2018: Intro Presentation on Raising Equity and Funding for your Startup

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NCFA Canada | Jan 15, 2018

Slides:  NCFA Canada Founder and CEO, Craig Asano, delivers a presentation on raising equity and funding for the graduating class of Founder Institute companies in Toronto on Jan 8:

  1. Equity & Funding Introduction Date: January 8, 2018 Prepared for: Founders Institute Toronto Prepared by: Craig Asano, NCFA Canada
  2. Fintech & Funding Association Massive Fintech Network Partners Advisors Members 90+ Platforms 20+ Providers 45 Portals 2018 2017 2016 2015 Oct 2012 Programs Services Global Network P1 P2
  3. Are you ready to raise capital?
  4. Are you ready to raise capital? Set your valuation appropriately • Look for comparable businesses • Geographic and investor group dependent • Discounted cash flow. Make your projections realistic. would you be willing to take your compensation as a % of forecast? • Ultimately a negotiation between investors and the business • Expect 10% - 30% dilution per round • Use preferred shares, convertible notes, SAFE / SAFT if uncertain or to avoid significant dilution How much time can you devote to funding? • Do not do this half ass. If after a defined period (ie 1 year) you’ve been unsuccessful then face facts (markets are highly efficient) • Understand potential impact to ego / brand equity and team motivation • Leverage templates. Be resourceful. Seek expertise.
  5. Are you ready to raise capital? How much money should we raise? • Determine key milestones that impact business’ value • IP strategy, Prototype • Sales and Revenue (ie repeat customers/month • Product/market fit or key development milestones • Human resources and team building (growth) • Raise what you need to get you to the next milestone (iterate and prove) Bootstrapping: advance your situation using existing resources Lean start-up: get to market and revenue positive as quickly as possible What non-dilutive sources of capital are available at each step?
  6. Are you ready to raise capital? Understand your initial capital structure (and dilution) • Founders (80-90%), Leadership team (10-15%), Advisors (1-3%) • Skin in the game • Put in writing and use vested agreements • Source cap table excel sheets online
  7. Where can I find Investors? • Identify potential investors and sources of funding (keep doors open): • Government grants / funds • Corporate sponsorships and grant programs • Friends and family, Loans and credit • Crowdfunding (Equity, debt/lending, reward, ICOs/tokens, Royalty) • Angel investors • Venture capital • Dealer-brokers, agents, intermediaries • Private equity interested in side-car investments • Ask for introductions • Global markets Sources of Private Capital
  8. Be strategic with your approach • Make a list of contacts that can realistically help (assign probability and amount you are seeking from them) • Seek to develop long term relationships and understand what you can offer them and vice versa. • Learning loop: Listen – learn – track and improve (alignment, probability) • Start building your funding networks yesterday • Online – personal & company profiles • Offline - Events, conferences, pitch forums, investor networks • Understand the timing of your ask relative to the ‘funding window’ and type of investor • Stay on top of funding research and news to find similar companies to learn from / with. • Ask for introductions • Turn advocates into loyal customers and investors Get in Funding Mode
  9. What are investors looking for? • A product/services that addresses a large market need (not a nice to have) • Team that can execute who has a solid understanding of business and challenges • Validation/proof (de-risk) • Some are seeking social impact or to balance impact with profits The Investment Process • Pitch deck is bare essential • Meet and greet is only the first step • All investment basics must be met • Due diligence review • Terms negotiated • Close (in person) What are investors looking for?
  10. Deal Breakers and Tips • Avoid one man team, no skin in the game, unrealistic valuations, serious character flaws • Raise equity capital with no clear purpose, to replace debt, pay big salaries, to develop an idea and not a business • Face to face meetings (3-5x more capital $ than email or call) • Securing initial key/lead investor will make raising $ significantly easier • Only invest if they know you, know the business and like the investment opportunity What you Need to get Started
  11. Basic Crowdfunding Models < $10K $10 - $250K < $100 - $350K+ < $250K - $3M+ Social Material Investment Benefits
  12. Raising Capital Online in Canada
  13. Wide distribution over the internet • Low cost, efficient, transparent capital • The `great equalizer` • Media/PR, awareness • Increase customer engagement and • Evangelize backers into investors (customer acquisition) • Reduce risk by getting feedback on new launches (product or ventures) • Market research Access to Capital Marketing Platform Validation • Raising funds via crowdfunding markets is a very public and transparent • Protect your IP and speak to a lawyer • Crowdfunding takes a lot of effort and commitment • The majority of Ideas fail to reach their funding goal • How will this affect your companies brand? Expose your Idea Resourcing Failure Crowdfunding Pros/Cons Benefits Risks For Companies
  14. Examples Source: Kickstarter Campaign page Innovation – Social – Incentives – Economic Growth Quidni Estate Winery (NCFA Director) • Just completed $100K equity raise (for 3% equity ownership) • Took over a winery. Went digital (including online wine sales). Converted virtual wine tasters into investors Impak Finance (Equity Offering) • Raised $1.2 million (goal was $500K for 6%) from 1450 shareholders to create first socially responsible Canadian bank • $500,000 in the first 24 hours! • Inclusive & accessible: $100 shares for $100
  15. NCFA Canadian Online Funding Directory Reward/Donation: Equity-based via Dealer: • Steady growth in portals • Equity, Debt & Royalties all emerging • Fintech is all the rage • Real estate and entertainment, film/media crowdfunding emerging Consumer and Small Business Loans:
  16. Crowdfunding Framework Planning & Strategy • The greater your planning efforts, the greater your chance of achieving your funding goal • Do not launch a crowdfunding campaign if you are not ready. (3 months) (40 days – 90 days) (Ongoing) Post-campaign • Your campaign is done but now you have to deliver on your promise • Fulfillment • Ongoing customer engagement Campaign Execution • Daily execution of tasks outlined in the campaign plan • Control, monitor and adapt Feedback Loop
  17. Success Factors SUCCESS 2. Network Strength • Sizeable online network and social media presence? • Will media/PR and influential bloggers cover your story? 1. Quality Idea & Pitch • Unique, enterprising and clear value proposition (conveyed online in a simple manner) • Get others excited about your story? • Clear funding target and specific goals? 4. Key Docs and Content • Compliant and necessary for investor review 3. Strong Committed Team • Is your team credible, committed and willing to deploy the resources and time to execute effectively? • Time management HARD WORK! 5. Marketing Campaign & Incentives • Planning and strategy with ability to execute through launch to post campaign
  18. Common Mistakes • We underestimated the time commitment involved • We didn’t test our campaign sufficiently • We launched before we were ready • We didn’t develop an accurate budget • We didn’t consult legal counsel or professional providers • We didn’t account for taxes • We tried to do everything on a shoestring • We didn’t realize how important the video was • We didn’t understand liability exposure (eg. misrepresentation) and intellectual property • We had little to no traction so we gave up • We blamed it on the portal
  19. Join Us Education & Research Market Access Crowdfunding Infrastructure Capital Raising Prep Services Support and Leadership Advocacy GET IT IN TOUCH Fintech & Funding Association ncfacanada.org crowdfundingsummit.ca

The National Crowdfunding Association of Canada (NCFA Canada) is a national non-profit actively engaged with social and investment crowdfunding, alternative finance, fintech, peer-to-peer (P2P), initial coin offerings (ICO), and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, networking opportunities and services to thousands of community members and works closely with industry, government, academia and eco-system partners and affiliates to create a vibrant and innovative fintech and online financing industry in Canada.  For more information, please visit: www.ncfacanada.org

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Crowdfunding 101

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Rogers Small Business | Robin Roberts | Nov 10, 2017

How to launch a successful campaign for the funds you need

Now that seven provinces (B.C., Sask., Man., Ont., Que., N.S. and N.B.) have legalized crowdfunding for businesses – which involves collecting small contributions from a large group of people – Canadian entrepreneurs have amassed between $250 million and $300 million in the last year alone to start up and scale up their businesses.

But successful crowdfunding is not just about posting a pitch on Facebook and expecting the cash to roll in. Craig Asano, founder and CEO of the National Crowdfunding Association of Canada (NCFA), offers some tips and tools for launching a winning campaign.

Choose your model

There are many types of crowdfunding, but for entrepreneurs, there are really only two models: investment/equity and donation/rewards.

Investment/equity models allow an investor to either buy shares or securities in your venture, or to receive a profit from your product. The equity option is the most successful, according to the NCFA, but tends to work better for established companies looking to expand, rather than bootstrapping startups.

The donation/rewards model, on the other hand, allows people to give money without getting anything in return – other than rewards in the form of whatever the company is selling or providing (e.g., their name on a funders plaque, a free meal at the restaurant, etc.). This model works best for raising capital for a specific product or idea.

Plan, prepare and promote

“You wouldn’t go to market without a strategic plan,” says Asano, who recommends spending up to three months preparing your crowdfunding campaign, adding that you need a good value proposition to present to your customers or investors.

Present your project clearly – have a prototype, if appropriate – so potential donors are confident your venture is on solid ground.

To reach the maximum amount of potential investors, says Asano, you should already have a following, online and off – preferably made up of people who will care about your idea. Use social media, attend networking events, and let your family and friends (and friends of friends) in on your venture. If you can attract media attention, all the better. Research other successful (and failed) campaigns to see what worked, what didn’t and why.

See:  Learn all about the latest innovation finance models in venture funding:  VanFUNDING Nov 28, Vancouver

And once your campaign is launched, keep your donors or investors in the loop about its progress.

Tell a story

To boost your crowdfunding campaign’s potential for success, create an emotional connection between you, your idea and your supporters. Use video, photos and narration to tell a compelling story about why you want to launch your business or product, or grow your company. Two of the most popular crowdfunding portals, Indiegogo (for entrepreneurs) and Kickstarter (for creative projects), walk you through the process and provide online support, as do other platforms, such as Canadian companies Seedlify and FrontFundr.

Continue to the full article --> here

The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both investment and social crowdfunding, blockchain ICO, alternative finance, fintech, P2P and online investing stakeholders across the country.  NCFA Canada provides education, research, leadership, support, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a vibrant and innovative online financing industry in Canada.  Learn more About Us or visit www.ncfacanada.org.

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How to Effectively Market an Equity Crowdfunding/Reg A+ Offering

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HuffingtonPost | By Eric Fischgrund | Sept 25, 2017

Equity crowdfunding appears to represent a simple solution for businesses – both startup and firmly established – that are looking to raise money to fund their vision. By allowing investors (and fans of the brand) to invest in their company online, companies view this funding mechanism as a way to bypass banks, brokers, and toxic financers. You file significantly reduced SEC-paperwork, throw a website up, and wait for your offering to go viral. Once the internet does its thing and your hyperlink is shared by e-mail as well as endless Facebook and Twitter accounts, the raise will be complete and you can begin planning the listing of your IPO.

If this seems too easy and too good to be true, you’re right – it is.

Unfortunately, too many companies and individuals are being talked into this strategy without the appropriate background information, and as such, the results of poorly executed crowdfunding campaigns are much easier to find that the success stories.

But there are success stories that were made possible only because of those who adequately planned for them. Over the past year, I have spoken with at least 30 companies considering some form of equity crowdfunding (Regulation A+, Reg CF, 506c, testing the waters, etc.). One thing I am continuously surprised by is those who are unprepared to commence an online raise.

See: What Works In Equity Crowdfunding; Insights From Research

As such, here are some general tips for marketing an equity crowdfunding campaign:

1. No two campaigns are alike. Like any marketing or communications initiative, no two companies are the same, and thus, no two crowdfunding campaigns should be executed the same way. The biggest mistake I see is thinking that a one-size-fits-all marketing approach that “worked really well in the past for another company and their raise” – will be successful. It won’t.

“Successful equity crowdfunding does require a great marketing plan executed by a creative marketing team,” said Kendall Almerico, CEO of Bankroll Ventures and one of the country’s leading experts on equity crowdfunding. “Coca-Cola, Cadillac and Calvin Klein do not market their brands the same way. Equity crowdfunding companies must engage a team that understands and markets the company in a unique way that stands out from all the noise.”

Take this into consideration before planning, as each company and campaign requires its own messaging, its own advertising strategy, and its own look and feel. Figure out what your strengths are, and market to them. For example, if your story has great visuals, find a way to leverage it via some form of multimedia, preferably video. Perhaps you are an emerging company working in a high-growth industry with plenty of competition. Focus on how to differentiate yourself from the competition, while outlining the existing market opportunity and what it means for you and your investors.

2. Get your online presence in order. Raising money from a diverse audience and group of sources can be difficult, but nothing makes equity crowdfunding so challenging as to do so with a poorly designed or ill-functioning website. The investment website is the primary way you are soliciting funds, and as such needs to clearly lead potential investors through the offering process. Think about it – using the analogy of an open house – why leave your trash on the front lawn, not fix the fence, and neglect a new paint job? Getting your digital presence ready means focusing on messaging for the website, carefully reviewing the design and aesthetics, proofing all content, and last but not least – making sure the user experience is a positive one! Do not underestimate the importance of the landing page for your online offering.

Further, legal context with regards to selling securities online must be considered. “General solicitation under the JOBs Act can open up many doors for a company seeking investments, but please, run your proposed content by your securities lawyer,” said Andrea Cataneo, a securities attorney with Sheppard Mullin Richter & Hampton LLP.

“Solicitation can mean advertising, webinars, internet offerings, group presentations, but it does not mean hype or exaggeration.”

See: Equity Crowdfunding Is 1 Year Old Today, Wefunder Is Top Platform

3. Identify and market to your audience. Understanding your ideal investor profile isn’t easy, but it needs to be done to build and leverage a captive audience. If you are a company reading this and looking to raise money online, and already possess an existing database of thousands or even hundreds of thousands of contacts (be it customers, clients, partners, etc.) with e-mail addresses, congratulations! You are ahead of the curve. Or, perhaps you already have a good feel for the sort of individual who is likely to invest in your company, and now you just need to go about marketing directly to them. Review site demographics, consider the profile of past investors and interested parties, and try to make that determination early, but…

4.…If you don’t have an existing audience, build one. Far too often a company approaches us with a great idea, a well-designed website and video that clearly spells out the investment opportunity, and a strong message for the media. This should result in success, right? Well, not always. Equity crowdfunding requires some form of direct marketing, and to do so, a company must have a base, either a significant social media following or a database consisting of contact information. If you don’t, social media advertising has proven to be a lead driver of web traffic and conversions. Consider running a Facebook advertising or Google AdWords campaign that drives specifically targeted people to your investment landing page. As many know, online advertising can be precisely targeted and is a great way to get an idea and offering in front of potential investors.

Continue to the full article --> here

The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both investment and social crowdfunding, blockchain ICO, alternative finance, fintech, P2P and online investing stakeholders across the country.  NCFA Canada provides education, research, leadership, support, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a vibrant and innovative online financing industry in Canada.  Learn more About Us or visit www.ncfacanada.org.

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5 Deal-Breaking Mistakes to Avoid When Pitching for Money

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NCFA Guest post | Gloria Kopp | Sep 14, 2017

When you're trying to fund a project with invested money, you need to ensure you're doing everything you can to enlist the most help from the most donors so that your project gets the funding it needs and can proceed on time as planned. Deficiencies in funding can significantly impact how quickly something is completed, and a lack of funding can totally kill projects in some cases. When you steer clear of these deal-breaking mistakes in your fundraising appeal letter, you'll give yourself the best chances of reaching your fundraising goals.

Not naming your contributors as the difference-makers

You may be organizing the project, but the backers (donors or investors) are the ones who are financing it and making it possible, so it's essential that you acknowledge that in your letter. If they're regular contributors, make sure they know you've noticed that. Something as simple as thanking them for their support since the (specific) day they made their first contribution can let them know that you're grateful for their help. You'll also want to make them aware of what their current donation will be put towards. When you let them know what they've already helped to accomplish and what they're currently helping with, they are instilled with a sense of fulfillment and pride.

“Emphasis the 'you' in your letter – leave yourself and what your own organization's part out of it for the most part. Of course, without financial contributions, your fundraising project would go nowhere, so they truly are the difference-makers” – says Fred Davis, an Operation Manager at State of Writing.

Using fear to sell them on contributing

Don't focus on the negative, or what will happen if you aren't able to pull together the funding for your project. If you start doing that, your potential donors could be hesitant about contributing because they may not have confidence in you to reach those goals. Instead, focus on all of the good that will come once the target fundraising amount has been reached – write your letter with the tone that reaching your goal is not out of reach.

See:  Crowdsourcing – A Powerful Marketing Tool for Startups

Painting a bleak picture of a negative outcome does nothing to inspire donors to join your cause. You want people to feel excited about the possibilities that lie ahead, not scared about what might happen.

Not getting to the point

If you're asking someone to contribute money to your cause, there's a good chance that others are doing the same. For this reason, you'll want to keep your fundraising appeal letter short and to the point, because they typically won't have the time to dedicate to reading a lengthy letter. James Atchison, a PR Manager and a contributing author at Huffingtonpost shares the opinion:

“Not only that, but they may lose interest in it before they reach the end. Be mindful of the busy schedules your contributors may be keeping by sending them a short letter that gets right to the heart of the matter.”

Assuming familiarity

Of course, you yourself should be well versed on the topic you're asking to be funded. But, there's no reason why your contributors should know anything about it, especially not from the first letter they receive. Assuming a certain level of familiarity with an issue or project can lead to miscommunication and information just going over your donor's heads. In a fundraising letter to build a new youth center, you probably don't want to introduce the concept by talking about the specifics of the building. You'll want to instead talk briefly about the need for the youth center to begin with. Specifics are great, but not to someone who has no knowledge of the cause to begin with. “To start with, the basics are great, and if there's interest you can provide more information after. The goal is to get them interested and excited, not to leave them scratching their heads and dismissing you” – comments Valentina Tighe, an Outreach Manager at Academized.

Leaving out the essentials

A well composed fundraising letter has four key components. Having all of these in your letter helps increase your chances of seeing success in your fundraising efforts. These include a single, concise message; facts that can support anything you've said; an inspirational factor that drives donors to get involved; and a clear and straightforward call to action.

See:  Hacking the Startup Fundraising Matrix

A good fundraising letter versus a bad one can have an enormous impact on the financing your project ultimately receives. Avoid these deal-breaking mistakes and help boost your chances of fundraising success.

"Gloria Kopp is an elearning consultant and a content manager at Big Assignments. She loves sharing her professional advice in her posts at HuffingtonPost and Paper Fellows blog. Besides, Gloria writes Studydemic educational blog for students and educators."


The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada. Learn more at www.ncfacanada.org.

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A Guide to Building an Audience for Crowdfunding

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Indiegogo Blog | Samantha Lewis | June 16, 2017

BRING OUT THE CROWD AND BRING OUT THE FUNDS

Embarking on a crowdfunding journey? When it comes to building your audience, the more people you can get to back your idea the better — but that can be easier said than done. From email lists to social media to meeting potential backers firsthand, gathering a large crowd to fund your idea takes a lot of hard work.

  1. Leverage your network. Never underestimate the power of the people you already know. Family, friends, co-workers and even acquaintances make a great foundation for your campaign community. Our guide will explain how to use your personal network to create a solid base for your crowdfunding audience.
  2. Build a landing page. Every campaign has a story — this is where you tell yours. From who you are and what your mission is to why your idea needs supporting, a landing page is a critical part of any crowdfunding campaign. Serving as an information portal, it’s where potential backers can learn more before a campaign goes live. It’s also an excellent tool for collecting email addresses and provides a link to help you share your story. Check out how to create a landing page for a successful campaign in our guide, which highlights several great examples from fellow Indiegogo campaigners.
  3. Reach out over email. Many campaigners agree: email is the most effective way to attract backers. It’s also not a secret that a healthy email list leads to more campaign contributions. How does one establish such a list? In our guide, we’ll explore proven ways to build a strong email database, capable of capturing and growing your audience before your campaign even launches.
  4. Use social media. Did you know that after email outreach, social media is the next best way to drive traffic to your Indiegogo campaign page? That’s why it’s so important your to properly represent your product on social platforms. Our guide covers everything from when to launch a social media campaign (hint: it’s months before your Indiegogo campaign goes live) to creating hashtags and content to foster a sense of community.
  5. Contact the press. Using media sources respected by your target audience can be a great way to establish trust with backers. But before you reach out to the press, there are few things you should know — like the difference between a pitch email and a press release. Whether you need help creating a media kit or are looking for some tips on crafting the perfect follow up, you can find it all in our handy new guide.
  6. Host events. Did you know that meeting potential backers face-to-face can be a great way to cultivate interest in your idea? From launching a kickoff party and hosting exclusive events for backers to throwing a campaign after party, we’ll show you how to host for the most contributions.

Continue to the full article --> here

The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding stakeholders across the country. NCFA Canada provides education, research, leadership, support, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada. Learn more at www.ncfacanada.org.

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How to succeed at Kickstarter: no ‘magic sauce’ but some factors help

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CBC News | August 14, 2017

From the Pebble smartwatch to Cards Against Humanity and Mystery Science Theatre 3000, Kickstarter — and crowdfunding sites like it — have changed the way small, independent businesses raise capital to get their ideas off the ground.

New stats collected by a recently-graduated Wilfrid Laurier University student and assistant professor Kevin McDermott outline why some Kickstarter Campaigns are a runaway success, and others can't seem to get any momentum.

Looking at two years of Kickstarter campaign data, Andre Fischbacher compared fundraising results from 30,000 projects and after crunching the numbers, some patterns leading to success became evident.

"We developed a machine-learning algorithm and had it perform a statistical analysis on the data," he explained, "with over 60 million data points ... we began to see trends."

Results not guaranteed 

Fishbacher warned that just because someone follows a best practice list, doesn't guarantee a successful campaign. Other factors such as the overall economic environment, or timing of the launch into the marketplace — such as if the product is seasonal in nature — can have a significant impact on the campaign's success.

See: 

Even though the research studied 30,000 cases, "there are still a lot of things that need to be looked at," he said, "but based on our research and what our testing has shown, we are able to predict the future success of a new campaign that the machine-learning algorithm has never seen before with up to 80 per cent accuracy."

Continue to the full article --> here

 

The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding stakeholders across the country. NCFA Canada provides education, research, leadership, support, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada. Learn more at www.ncfacanada.org.

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