Crowdfunding 2016: What you need to know

NEW YORK--Last January 21, Gotham Media gathered experts in the crowdfunding space to  give us the lowdown on the best option for you at the Frankfurt Kurnit Klein & Selz offices.

 

http://www.meetup.com/GothamEntrepreneurs/events/227298466/

 

Gordon Platt, founder and president of Gotham Media, moderated the panelists Christian Busch, senior VP of marketing at Indiegogo;  Peter Einstein, co-founder of The Crowdfunding Network & LaunchIPO.com; Ariel Hyatt, founder of Cyber PR/Cyber PR Music; Julia Maltby, director of business development at Plum Alley and Nicolas Leeper, analyst at Seed Invest.

 

Following are the insights from the panelists:

 

  • The act of crowdfunding campaign is an advertising campaign; the lower end of it, it's a sales campaign

  • You need to have specific targets when email blasting

  • Crowdfunding is a form of marketing; you need to have a plan, even paid media efforts, very good marketing efforts  

  • People look for those already with a platform

  • Growth hacking is actually direct marketing times 10

  • You need a soft launch campaign or private funding a week before or 48 hours at least to raise initial funds (for show)

  • Get 30 percent funding ahead so when you launch in a crowdfunding site, you’re more legit

  • Getting some initial funds (and people seeing it at a crowdfunding site) is all about psychology; people like to see a winner

  • A business model that is easier to understand can make it work in a crowdfunding site

  • (A good) consumer-facing product (works most of the time)  

  • Make sure you have engaged users

  • Largest crowdfunding countries are US and China

  • Only a dozen among thousands of fund-seekers have reached the million-dollar level in funds -- and they are the ones who get in the news

  • How crowdfunding seekers are featured in Indiegogo are based on site’s algorithm and editorial (choice). A certain velocity on a campaign is needed

  • Be careful when using videos in your crowdfunding efforts or you could face a lawsuit with the wrong message

  • Crowdfunding platform’s share of 5 percent in most crowdfunding sites may not go down or up (anymore)

  • 5 percent share in equity crowdfunding is (obviously) not going to work

  • Equity crowdfunding success is about diversification; investing in 10 or so companies