NCFA Canada | Guest Contributor | Feb 24, 2017

Crowdfunding is one of the most effective ways to generate the capital required to start a tech startup. However, many tech startup owners are unsure about how to take advantage of crowdfunding and how to establish their business in this way. Below are some tips that will put you in a better position and allow you to crowdfund a Canadian tech startup with more confidence.

Preparation

Like any business activity, the more you prepare, the more likely you are to succeed. You need to ensure that you have the technical skills and the business skills required to create a business that can benefit as much as possible from crowdfunding.

For instance, if you think your business skills are below par, it's a wise decision to start a business-related course like a masters in project and program management degree. If you choose to complete an online MSMPP program or a similar course, you can study whenever you like and wherever you want to study, so you can also be working in your business at the same time, without too many disruptions.

In most cases, similar crowdfunding campaigns have been completed by other startups, so it's a good idea to take the time to check out the results of these other projects. If they succeeded, there's a good chance your crowdfunding campaign will succeed as well.

Understand Your Market

It can't be overstated how important it is to understand your target market. You should find out what your target audience likes, what they need from you, their age group, interests and any other considerations that could affect your crowdfunding project. Once you have this information, you will make more informed decisions about whether or not to go ahead with a particular crowdfunding campaign for your tech company.

See:

• Getting Press for Your Startup

• White Label Crowdfunding 101: Part I – Pros & Cons

Choose a Project That a Large Number of People Are Interested In

Ideally, you want to attract the attention of as many people as possible. In most cases, these people will only be interested in projects that they understand. This means your project has to cater to the needs of a wide range of people.

Use the Right Platform

Today's Canadian tech startup owners have a wide range of crowdfunding platforms to choose from. However, like everything in life, some crowdfunding platforms are better than others. Before you choose a crowdfunding platform, it's once again a smart decision to research the most popular platforms and find out which ones are the most active and have the potential to raise the amount of money you need for your tech project.

Let People Know About Your Venture

It's vital to let as many people as possible know about your crowdfunding campaign. Create a social media campaign, a news story about your project, and any other marketing methods you believe will work, as this will give you and your new business much more exposure and increase the interest shown by potential crowd funders.

Unfortunately, many startup owners are not aware of the potential of crowdfunding or hesitate to create such a campaign. However, following the tips above will increase the likelihood that you will succeed and raise the funds needed to get your startup off the ground.

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