Elad Gil had a post this week why fundraising from conventional private capital sources (VCs, angels) will usually take two-three months. It occurs to me that that general rule applies to crowdfunding, too. I think this is important for anyone who wants to go the crowdfunding route to understand from the outset. What takes so much time?
- Research, 2 weeks: Almost all crowdfunders are first-time crowdfunders and need to educate themselves on all aspects of the market. While there’s an emerging library of decent resources, a would-be crowdfunder still needs to read and digest it.
- Planning, 2 weeks: SeizeTheCrowd is built on the premise that good campaigns are the result of planning and not viral serendipity. At this stage a fundraiser needs to hone in on their marketing message, identify likely backers and start priming the pump among friends and family so they launch strong.
- Pre-Campaign Execution, 4 weeks: Video needs to be shot, photos need to be taken, rewards need to be designed and priced out, influencers need to be contacted, social networks need to be expanded, and so on.
- Campaign, 4 weeks: Hitting launch is, to paraphrase my high school year book quote, the end of the beginning. You’re going to spend these days beating the bushes, drumming up coverage, reminding friends, family and friends about the campaign, FB posting, tweeting, pinboarding, responding to emails, writing updates, and having trouble sleeping.
So there you have it: The life cycle of a crowdfunding campaign. Remember: Crowdfunding does not just happen; it is not an alternative to other methods of raising capital but NOT NECESSARILY AN EASIER ONE. Good luck!