How Much Money Should You Raise in Crowd Funding?

FundraisingThe question of how much money you should raise during a crowd funding campaign is the most important element of your campaign. If you set your goal too high, you won’t be able to claim any of the funds. In most crowd funding efforts its all or nothing, where if you don’t reach your fundraising goal, you don’t get any portion of the funds raised. If you set your goal too low, you’ll lose out on potential funding and leave money on the table.

Go into a campaign with a good understanding of your support base and how much money they are likely to contribute. Talk to supporters prior to launching the campaign. Understand their level of support and financial wherewithal. Don’t expect that your campaign will go viral. Its more likely that the majority of your support will be from those who already understand (and know) your venture.

Bear in mind that average amount of money raised on crowd funding campaigns. While IndieGoGo doesn’t release this figure, a quick view of the site shows that the overwhelming majority of campaigns seek less than $50K in funding. In fact most of them are less than $25K. While there are a few campaigns that have raised millions, these campaigns are few and far between.

One tactic is to start small. Instead of seeking funding to finance your entire venture, seek financing that will fund an individual product or service. If successful, you’ll be able to come back to a crowd funding platform and run a second campaign, for an additional product or for your entire venture. By lowering the bar, and the monetary goal, you’ll be more likely to achieve success.

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  1. are also drawing to the close of our Pozible crondfuwding campaign. In case you missed our original post about it, Pozible is an online funding platform that enables people to donate whatever they can spare –

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