Community Economic Development Fund

Kickstarter may be your best option to raise capital

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By Anthony Price
Founder, Loot Scout

In business, anything is possible, but you need money. I wrote the book “Get the Loot and Run: Find Money for Your Business” to help businesses source funds. After personally seeing success by using crowdfunding to finance this book, I decided to use Kickstarter for my next project.

Many people don’t have time to read 300-page books. Yet, books contain ideas and knowledge that provide accessible and affordable solutions for entrepreneurs. This week, I launched my next Kickstarter campaign to raise money to create mini books: 30 minutes of reading that fits in your pocket for on-the go people.

I choose Kickstarter, the largest reward-based crowdfunding platform, because banks don’t fund these types of projects. Moreover, I didn’t want to spend months courting angel investors. I wanted “patient” (slow) capital on my terms.

Since April 2009, almost $4.8 billion has been pledged on Kickstarter and over 177,000 projects have reached their goals, everything from a smart ring, a documentary about public transportation in New York City, to handmade donuts.

Kickstarter is all or nothing. If you don’t reach your goal within the allotted time—even if you’re only a dollar short—you get nothing, and your backers’ credit cards don’t get charged. The pressure is real, like watching your favorite sports team attempt a comeback while the clock winds down.

A good story and marketing is the key. While Kickstarter has 17.4 million backers, you must persuade your tribe to be the earlier contributors. Successful campaigns get family, friends, friends of friends and the public excited about the projects.

You must spread your message through social media, blogs, vlogs, email, texts and personal telephone calls. I sent a mass email to my newsletter list a few days before launch to show my prelaunch page. On launch day, I sent an email reminder to announce that my campaign was live.

I have only 35 days to reach my goal of $20,000. Visit my campaign to see how I describe the project. In the end, you may learn that Kickstarter is your best option to raise capital on your terms.

Author Anthony Price is founder and CEO of LootScout. He has appeared on CEDF’s Small Business as Usual Podcast. An excerpt of his book Get the Loot and Run: Find Money for Your Business” was published on this site last year. Reach him at anthony@lootscout.com.

 

 

 

 



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