On May 23rd we took our female entrepreneurs on a learning journey on the alternative form of finance; Crowdfunding through our second session of the Female Entrepreneurship Breakfasts program – LearnZilla. Lama Amr the Executive Director of Build Palestine – a platform to connect supporters around the world with social impact projects in Palestine; took the lead to guide 38 ambitious entrepreneurs through this journey.
What is crowdfunding for your idea?
The mobilizer for good explained the meaning of crowdfunding for someone with an idea, as a form of funds often performed over crowdfunding websites and online platforms, where you present your idea of a product or project to a pool of investors over a certain period of time estimated at months. Interested investors from the audience that like your idea might contribute though investing, funding, buying, or even donating to it, so that you get the amount needed to implement your project.
Crowdfunding is also a great opportunity to market your project, manufacture and sell your product with the lowest risk margin possible, and to open up new relationships with clients or investors.
What are the steps of creating a successful campaign?
- Planning in which includes staffing, choosing the right platform, building the campaign description, identify the target amount, timelining, video &photo production, rewards design and choosing the right platform
- Crowd building: Crowds come before financing. Who is the community of supporters, who are the first funders in your campaign and what is your marketing plan for your campaign. This can be through communication with influencers (people or organizations), using social networks, creating a Landing Page, Email Marketing, Media and news sites.
- Launching the campaign and public relations
What can you give in return of their support?
- Donations: Project supporters donate to a charitable project or to solve a problem in the community.
- Rewards: Supporters give money with the aim of supporting the person or project in exchange for a token gift.
- Lending: Supporters provide the required amount in return for its repayment in addition to a specified percentage.
- Pre-order a product: Supporters pay for the product before it is manufactured, as the entrepreneur starts manufacturing the product if it reaches the required amount.
- Investment: The financiers shall have a percentage of the ownership right in the project, or participate in the profits according to the agreement.
Crowdfunding models :
“It’s all yours” model: At the end of the campaign, the entrepreneur gets the sum collected regardless of whether he/she has reached the goal they set or not.
“All-or-nothing” model: In this model, if the campaign could not reach its goal, for example (10 thousand dollars) and collected only 8 thousand before the end of time, the funds are returned to the funders.