Facts on crowdfunding

By Metro Creative

Crowdfunding can be a great way to raise money for a good cause. The effectiveness of crowdfunding can be seen in just how much money is raised through this relatively recent platform each year.

According to the small business financial resource Fundera, crowdfunding campaigns raise $17.2 billion each year in North America. But raising money and having a successful campaign are not necessarily the same thing. Crowdfunding platforms differ, but some return donations if the campaign’s financial goal isn’t met.

People who want to start a crowdfunding campaign to support a good cause should know that, according to Fundera, campaigns that raise at least 30% of their goal within their first week are more likely to reach their goal. One way to improve the chances of being successful is to include videos in your solicitation efforts. Fundera notes that crowdfunding campaigns with videos earn 105% more money than those without videos.

In addition, campaign organizers should not downplay the effects of providing routine updates to followers. Data from Fundera indicates that campaigns that regularly updated followers earned 126 percent more money than campaigns that did not provide updates.

— Metro Creative