Are you trying to approach tech-focused venture capitalists to fund your creative project? If yes, then you are heading in the wrong direction. Creative social projects are inherently risky and do no have high return possibilities, this makes venture capitalists less interested in these projects.
Are you trying to approach government grant schemes to fund your creative project? If Yes, be prepared to go through the road blocks caused by bureaucracy and wait for an infinite amount of time before getting any response from the agencies.
Are you trying to approach philanthropic institutions to fund your creative project? If yes, then you might be put on a wait list for a very long time before you could pitch your idea to the concerned person in the institution.
So where else can you look for funding?
Aim for crowd funding! Crowd funding is a new age mantra to financial social projects. Crowd funding is a financial sourcing strategy where many individual investors make small contributions towards raising capital for a project.
Although, crowd funding can be used for any kind of project, this source of funding has been immensely popular amongst creative workers. In 2013, when the concept of crowd funding was in its infancy, no one could think of raising £1m through crowd funding. But we hear of more than 18 crowdfunding rounds of £1m or more in the past year on only two crowd funding sites Crowdcube and Seedrs in the UK.
If you then plan to raise funds from crowd finding, here are six points you must remember.
- All crowd-funding schemes are available on online platform.
Yes! You are right. You don’t have to travel to several destinations looking for individual investors to crowd source. Type in the website of a popular crowd funding site and upload. Here are 9 crowd-funding sites, to help you begin with your journey.
- Select the right crowd funding website to raise funds for your project. Some crowd funding platforms target specific industry funding, while others are more generic. There is no harm in trying at multiple platforms, but focusing on one or two might be a better strategy.
- First impression is the last impression! Remember this old saying and ensure that your campaign portrays you and your project in the best possible manner. Invest in making the right impression. Hire professionals to
- Give enough time to raise funds on the crowd funding platforms. A period of 8 to 10 weeks is ideal to raise funds. But be sure to remind the people on the platform multiple times that you are seeking their interest and funds for your project.
- Try to harness your social network to fund the project. Drive your own community to your campaign page and elicit their interest by showcasing your talent in the area on your social network pages.
- Finally, give creative rewards to your investors. The rewards could range from simple thank you notes to an investor-networking party at the end of the campaign.
Crowd funding could be a wise tool to consider for your funding needs. Lastly, remember to note the terms and conditions of the crowd funding sites. Some websites might give you access to all the funds raised after deducting their fee; and others might only give you access to the funds if you are successful in raising full amount that you pledged, else they return the money to the investors after the campaign closure. So, ask for a sum, which can be well justified in your campaign.