Fundraising by getting small donations of money from a large group of people, what’s called crowdfunding, is a very different animal than getting access to capital at a bank: your story matters more than your credit score. To be successful in a crowdfund, remember who your audience is and cater to it.
Basic financial needs, like paying off debt, may be critical for your business, but “they just don’t excite a potential investor,” says Natalia Oberti Noguera, the founder of the Pipeline Fellowship, a New York City-based training program for teaching women philanthropists about angel investing. To get resources for your business, whether money or mentorship, tailor your request to the skills and interests of the person you are asking, says Oberti Noguera, who spoke at the conference.
For donation-based crowdfunding, raising money from a group of nonprofessional investors on sites like Kickstarter or Indiegogo, the key to your success is capturing people’s attention and curiosity. At a women-entrepreneurship conference in New York City on Wednesday, hosted by women entrepreneur business network Own It Ventures, a group of crowdfunding experts shared best practices.