Not Enough Investors? Here’s Why Your Crowdfunding Campaign Isn’t Working and How to Position for Success

Every business needs capital and seed money for special projects, expansion plans, and overall operations. But as the UK economy continues to face uncertainties, such as rising inflation and the cost of living crisis, startups and emerging businesses in the fields of finance, technology, and telecommunications struggle with the lack of growth funding coupled with harsh investment conditions.

Fortunately, companies can turn to crowdfunding as a democratised and alternative form of financing. But launching a successful crowdfunding campaign doesn’t come easily. It takes time and effort to stay visible and attract investors, so here’s a brief guide on which mistakes to avoid and how to adjust for success when raising funds.

Common mistakes in crowdfunding campaigns

Lack of strategic planning

A crowdfunding campaign is set up to fail if you haven’t undertaken sufficient planning and preparation. As explained in a previous post on ‘Positioning Your Campaign for Success’, good ideas are no longer enough. Investors need a clear, well-structured plan that outlines your business value and your next steps should you receive the funds you’re asking for. Your overall plan depends on your crowdfunding approach, whether it’s based on donations, equity, or rewards. But what ultimately matters is that you decide on key targets and goals, a crowdfunding platform, and a realistic timeline for the campaign.

Not sharing your story

In drafting all the logistics and technicalities involved in crowdfunding, some entrepreneurs solely focus on the business plan and lose sight of an equally important aspect of campaign success: their story. So, while the plan is designed to convince your investors why your company is worth investing in, you lose your competitive advantage when you fail to communicate an emotional and compelling narrative behind the campaign. Prospective investors will be hesitant to help unless you’re transparent about your needs and they can connect with the journey behind starting and pursuing your business.

Take, for example, how a funded client like Cosimo Art engages communities beyond social media by using the crowdfunding platform Seedrs. They were able to reach new audiences with their story and generate £130K from 173 investors. With this integrated approach to marketing and branding, it's easier to expand the reach and staying power of your campaign.

Tips for running a successful crowdfunding campaign

Have a solid marketing strategy

You must have a marketing strategy in place to keep your approach consistent and track your campaign’s reach across all platforms. Aside from social media and crowdfunding platforms like Seedrs, SEO agency Ayima explains how Google Ads keywords are also crucial for boosting your campaign’s visibility in the search engine results. You can even bid against the brand keywords used by competitors — for example, a startup in a similar niche or industry as your business — to ensure your campaign stands out and converts more page visitors into loyal investors.

Showcase your core values and mission 

In order to communicate the story behind your campaign, you can further gain traction and reach your target audience by showcasing your core values and mission. All the content you put out — from promotional materials to your landing page on a crowdfunding platform — must be imbued with said values. As an HR News article about ethical companies notes, highlighting how your company creates a real positive impact can attract investors that share the same values and increase their confidence in funding your various initiatives and programmes, typically in the realm of corporate social responsibility (CSR).

To illustrate, the reason behind the success of Goodfolio, one of our funded clients, goes beyond its innovative features as an investment platform. Goodfolio has built its crowdfunding campaign around the idea of an ethical investment platform to stand out in an otherwise profit-driven market and reach its funding targets by 160%. The company showcases its values by aggregating social and environmental data in its platform and ultimately listening to what ethical investors want.

Overall, launching a successful crowdfunding campaign can be challenging, but every step is worthwhile since you get closer to setting your plans into motion and hitting your financial goals. ISQ Crowdfunding is here to help you navigate every step of the journey — from planning and getting to know your story to reaching out and engaging with investors.

Article contributed by Romy Jaclyn exclusively for ISQ.

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