Fundraising/ Crowdfunding

Our crowdfunding services are based on 20 years’ experience of fundraising for start-ups and early stage companies. These learnings have been totally adapted for crowdfunding campaigns.

The team have had successful campaigns across multiple industries ranging from renting desk space by the hour, to mobile shopping apps and digital health products.

With over 65% of Kickstarter campaigns failing, crowdfunding is not for the faint hearted.
This is largely due to a lack of preparation and the sheer unfamiliarity of what is required for this type of fundraising.

DDD has an understanding of exactly what is required and has created a matrix of 83 steps necessary to give each campaign the greatest possible chance of success. This list is chronological and many tasks are interdependent, however, the greater the preparation, the higher the chance of success and therefore we would recommend you starting the process three months before you actually go-live on the platform. You could outsource as many or as few of those steps to DDD and spread them over the course of the three month campaign.

Examples of the 83 steps in which you could outsource to DDD include the following:

  • Choose the right platform for your product.
  • Clearly communicate the offer and work out their likely return and upside.
  • Do a closed pre-sales campaign to have investors already in the wings.
  • Ensure all your communications are investor ready – including Exec Summary, Financial Model, Pitch Deck, Website, Infographics, PDF’s.
  • Attend SEIS / EIS investor pitch events.
  • Pre-prepare a comprehensive social media campaign and build a list of positive advocates or potential customers way before going live.
  • Create a great two minute video that tells a great story, communicates the personality of the business and resonates with an investor’s emotions.
  • Identify and nurture prospective power influencers inc vloggers, bloggers and journalists.
  • Plan a 30 to 45 day military campaign with activity happening every few hours over the duration of the campaign.
  • Prepare and make a big noise during the inevitable ‘valley of death’ period.
  • Offer rewards and incentives based on the size of investment.
  • Ensure the listing is highly polished with great copy and photos.
  • Organise a newsworthy launch event.
crowdfunding steps

For equity based fundraise e.g. Crowdcube the greatest determinant of success is if you’re able to raise around 35% of the total raise in the first week. This typically involves planning a pre-sales campaign to the best customers or potential customers, high net worths, business angels and syndicates.

We are experienced on the following platforms:

Kickstarter / IndieGoGo are product or rewards platform so ideal for pre-selling products that are then manufactured using the funds raised
Crowdcube / Seedrs are equity based platforms where you exchange investment funds for a share ownership of your business

Crowdfunding is the key platform to garner eyeballs and drive awareness. Also, crowdfunding campaigns have three major advantages: –

a. Product Validation – (Kickstarter and Indigogo)

A product or rewards based platform is the very best way of determining the appetite of your new product or service. The huge advantage is that many ‘early adopters’ are willing to purchase these new products and are happy to part with their cash and potentially wait months or the item to be delivered. These early advocates are excellent to elicit feedback of your product and quickly determine what needs to be improved or altered with your product. They are also the easiest people to convert to become ‘ambassadors’ of your product to encourage their tribe to become customers.

b. Bypassing Established Gatekeepers (Equity Based Platforms)

The typical cry from Venture Capitalists (VC’s) is that companies they meet with are too early stage. Therefore crowdfunding is an ideal vehicle to raise funding in the difficult to raise amount of £300k to £1M. Venture capitalists (VCs) rarely make investments in this sector and therefore crowdfunding is useful to boost your sales traction and to move from your MVP (minimal viable product) to properly build out your tech, product or service. You can also normally achieve slightly higher valuations than going into the ‘Dragon’s Den’ of VC’s at this stage. Once you have achieved sufficient traction then you can go back to VC’s and have a more fruitful conversation.

c. Marketing Blitz

A crowdfunding campaign is highly visable and therefore a poorly executed campaign can leave your product or service in a worse position than it was before. It is therefore imperative to do as much preparation work possible as the highly pressured timelines to raise the required amount of funding, puts added stress into the mix. We will happily give an hours free advice before you commit to any crowdfunding campaign.

Latest Work