Know before you hit go

3 tips for a successful crowdfunding campaign

It's not easy getting green. Getty Images

Kickstarter is a widely popular crowdfunding platform that helps people to raise money and awareness for their creative projects. While known for product-focused campaigns, musicians to film producers have also achieved success on the platform. In September of 2017, my Houston-based startup GetAlcove.com launched our first kickstarter campaign. While we exceeded our campaign goal, it was a very intense 45 day campaign. Let's consider the statistics:


Yes, almost 70 percent of projects fail. Don't fret. Understanding how to effectively plan and launch your campaign will increase your chances for meeting your campaign goals.

By March 2017, my co-founder and I received enough customer feedback to warrant the pursuit of developing Alcove Workstation™ further. We were attracted to crowdfunding as it presented a viable option for validating our concept with a wider audience while also raising the initial working capital necessary to mass producing Alcove. After researching the various crowdfunding platforms, we decided on Kickstarter as it is well known for launching product-focused campaigns and has a strong brand that we could leverage during our marketing efforts. While we read countless publications on how to prepare for our crowdfunding campaign, our experience on Kickstarter garnered three key lessons.

1. Spend up to one year prepping before launching your campaign.

I can't stress this enough. After we decided to launch, we spent six months engaging with our target audience and obtaining verbal commitments from friends and family and past colleagues to back our project. We also presented at local events and evangelized our brand via social media marketing. In hindsight, we should have spent additional time finalizing the production ready sample of our product prior to launching.

Once you launch your campaign, the clock starts ticking and you'll need deliver fast. Due to a myriad of issues with remote manufacturing, we inevitably missed our original ship date. Fortunately, the kickstarter community is forgiving and recognizes the inherent challenges with bringing a product to market. Even so, I recommend launching your campaign as close to your final concept as possible to reduce unforeseen delays with manufacturing and shipping logistics.

Once you launch your campaign, the clock starts ticking and you'll need deliver fast.

2. Determine which crowdfunding platform is right for your project.

There are four main types of crowdfunding platforms. Kickstarter and Indiegogo are rewards-based whereas platforms like GoFundMe are donation-based. More recently, equity, and debt based platforms like Houston's NextSeed have garnered attention from campaigners seeking alternative methods to raising funds and deferring payment.

Take the time to read about each type and contact each platform for specifics about how they will support your campaign during and after campaign. Indiegogo does a solid job of highlighting their partnerships with vendors that can assist you during different stages of your campaign; offering marketing promotion, direct links to manufacturing vendors, and additional funding options even after your campaign ends.

The next step to determining the right platform for your project is to search for similar "like" products. If you are launching the most revolutionary ear buds on the planet, then you want to ensure people are backing ear buds or similar product on the platform/s you are considering. A simple search on each site will pull up all ear bud projects to date. Then, you can quickly assess the patterns of the most successful vs. unsuccessful campaigns.

3. Launch the right campaign goal, with the right team, at the right time.

This is both important and hard to determine. Let's break it down.

The right campaign goal
The campaign goal is the total dollar amount you want to raise by the end of your campaign. The goal amount can be adjusted once on Kickstarter but I recommend that you keep it low — $5,000-$10,000 — to ensure you meet your goal within two days — three days max. Keep in mind you are competing with four to five thousand live projects at any given time. If you make your campaign goal, Kickstarter's algorithm pushes your project up the list and you have a good shot of being listed or even featured on the front page of Kickstarter's website. If you make your campaign goal too high and don't meet your goal with those couple days, Kickstarter's algorithm pushes your project down the list. If I recall, our campaign went from approximately 115 to 800 after day two. Each day that passes, your project is pushed even further down the list of over 4000 projects. What this means to your project is that unless you have a serious marketing engine behind you, no one will see your project outside of your immediate contact list or followers on social media. This is where hiring the right team of marketers and PR can be invaluable.

The right team
Think of the development of your crowdfunding campaign as a micro-enterprise site that requires the right mix of talent to build out. Funded startups with established teams and products in market, for instance, are launching on Kickstarter as a way to increase market awareness of their new products. For the boot-strapped startups with small teams, leverage your strengths and hire for gaps in skills to ensure you develop the right communications, pricing strategy, and overall layout of your page. To be clear, a production quality video is an absolute must.

The right time
Finally, consider the timing of your launch to align with complimentary events or holidays. If your product is focused on education/learning, the obvious timeframe would be to launch during back to school. Another way to galvanize your target audience is to identify popular conferences for your industry. For our campaign, we aligned with the Tech Disrupt conference in San Francisco and literally went live on Kickstarter directly from our exhibit booth!

While I can not make any guarantees for your campaign's success, I am confident that if you apply these tips, you will be that much closer to achieving your campaign goals.

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Yared Akalou is the founder of Houston-based Alcove.

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Building Houston

 
 

Data Gumbo, founded and led by Andrew Bruce, has announced its latest funding. Photo courtesy of Data Gumbo

A Houston-based tech company has announced another round of funding to support its blockchain network growth as well as to establish a presence in the Middle East.

Data Gumbo has closed its series B funding round totaling $7.7 million with follow-on investments led by Equinor Ventures. The round includes participation from Saudi Aramco Energy Ventures and Bay Area and Houston-based venture firm L37. The round's first close was announced in September 2020 at $4 million. The additional funds to close the Series B will be used to scale Data Gumbo to serve demand for GumboNet™ and GumboNet™ ESG. Additionally, Data Gumbo plans to establish a presence in the Middle East to cover expected demand growth in the region.

"The successful close of our series B is continued proof of the efficacy and booming interest in our ability to capture critical cost savings, deliver trust and provide transparency across commercial relationships," says Andrew Bruce, founder and CEO of Data Gumbo, in a news release. "Compounded by the growing demand for transparent, accurate sustainability data and the launch of our automated ESG measurement solution, GumboNet™ ESG, Data Gumbo's trajectory is well-positioned to serve our growing customer base by ensuring economic productivity and value. This infusion of capital will support our expansion efforts as we bring more international users to our network."

With this latest raise, Data Gumbo's total funding raised to date is $18.4 million.

"Data Gumbo's success is marked by a wide variety of business use cases and opportunities for expansion," says Bruce Niven, chief investment officer at Aramco Ventures, in the release. "Our continued investment is a testament to our continued support as the company attracts new customers, experiences further demand for its network and gains traction in new markets."

The company's technology features smart contract automation and execution, which reduces contract leakage, frees up working capital, enables real-time cash and financial management, and delivers provenance with unprecedented speed, accuracy, visibility and transparency, per the release.

"Data Gumbo is the market leader for smart contracts backed by blockchain, and the coming year will be a period of exponential growth for the company as they penetrate new industrial markets," says Kemal Farid, partner at L37, in the release. "We believe strongly that GumboNet will become the de facto network for smart contracts across industries for capturing value and solving enormous pain points in contractual relations. Additionally, as companies move to meet increasing sustainability measurement demands and ESG improvements, there is a huge growth path available for Data Gumbo with the launch of GumboNet ESG."

Earlier this year, the company announced its environmental, social and corporate governance tracking and reporting tool.

"Equinor's recent pilot at the Johan Sverdrup field has demonstrated that GumboNet can create strong value for the partnership," says Gareth Burns, head of Equinor Ventures, in the release. "Our follow-on investment confirms Equinor Ventures' confidence in Data Gumbo's solution for our company and the broader energy industry."

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