Crowdfunding in 2020: Why There’s Never Been a Better Time to Fundraise

While we’re certainly not out of the woods yet, there are businesses thriving even during these unprecedented times. Now, a new study into crowdfunding activity from AskTraders has revealed there may be no better time to seek funding to bolster and grow your company. Here’s what the research shows, and how your business could benefit.

A decade of donations

The study reviewed donations made via the Just Giving website since 2010.

It found that the first six months of 2020 showed a huge 1,006% increase in funds raised when compared to the first half of previous years; meanwhile, the number of donors also increased by 769% for the same period.

What this shows for businesses is that the fundraising community remains active and engaged. If your business is seeking crowdfunded support, any concerns around the marketplace not being right should be quashed by this research.

Using crowdfunding for business

Crowdfunding is the term used to describe sourcing funding from large groups. It can benefit businesses of all sizes because it enables donations upwards of very small amounts - meaning ‘investment’ isn’t prohibited by high entry fees.

At the same time, it allows the business to pitch themselves to potential investors. It’s common, particularly on platforms like Just Giving, to create a page and fill it with information about the company to entice interest - so it’s also a great way to build awareness for your brand.

Getting started with crowdfunding

The first step to a successful crowdfunding campaign is to present your case. This means creating your fundraising page in a way that positions your business positively, providing potential investors with plenty of information and imagery to show them what your proposition is all about.

You can also include a video, which adds an extra dimension to your campaign page and can, when done well, increase engagement. If you do choose to create a video, it’s worth considering the quality you need - while a flashy production might look great, a rawer style of video can also work well.

Setting a funding goal

On most crowdfunding platforms (Just Giving, Kickstarter, Seedr and so on), you’ll need to set a funding goal for your business. Setting a goal can seem daunting, but it’s important to approach it logically - with ambition but also realism.

If your brand has never been promoted in this way before, it could be prudent to keep your expectations relatively low. With that said, undervaluing your business could put potential investors off.

It’s worth doing your calculations here too. Working out what your business really needs is an essential part of your crowdfunding journey.

Promoting your campaign

Another key part of your crowdfunding journey is to promote your campaign.

It’s not enough to post your campaign and hope people see it. Yours will be amongst countless other campaigns for potential investors to consider so you’ll want to do all you can to let people know you’re there.

This can be done ‘organically’ (as in, with no budget) - use your social media channels and existing networks to put the word out. You might also invest advertising budget, through online channels like Facebook or LinkedIn, or make some bids through Google’s search network by targeting keywords relevant to your product or service.