Crowdfunding Guide by Jonathan Schick

Welcome to SPURstartup. SPURstartup encourages you to grow your startup by raising money for milestones. You will receive funding throughout your entire startup experience, giving you the opportunity to validate and pivot your idea in response to the market.

Campaign 1

Raising Money for Milestones:

• Breaking down your capital raising process into stages. • Using multiple crowdfunding campaigns to raise money for goals while you make incremental progress on your idea.

Ear n Some Extra Credit and Boost You r Campaigns.

Campaign 2 Refinement & Development

Enroll in courses on SPURstartup to learn how to meet

your ﬁnancial and strategic goals. You’ll earn badges for

completing courses to help you build credibility and trust

with backers. Campaigns with badges are more likely to be

promoted by SPURstartup and featured on our homepage!

Campaign 3

Our Courses make this Process as easy as 1, 2, 3!

Enrol l at...

teachme.spurstartup.com Are you a college student? Look out

for this mark to ﬁnd tips for maxmizing your resources on campus.

To infinity...

The number of campaigns is up to you!

And beyond!

PLANNING Create You r Campaign Strategy What (besides raising money!) is the goal of your campaign? A good campaign strategy aims to accomplish these three goals.

1. Test the Market 2. Reach a Milestone 3. Raise Awareness

Great campaign goal! Why? See below!

How to Set Good Goals

Raising Money for Milestones

Use the S.M.A.R.T mnemonic to set

We encourage you to raise money for milestones

effective goals. Goals should be…

Speciﬁc

Goals should be written as a clear

by having multiple campaigns for your startup.

Milestones are major achievements, such as developing a prototype, ﬁling a patent, or conducting market research.

deﬁnition of what you plan to do.

Perks for raising for milestones…

Measurable

• Gain feedback you can implement

Goals need have criteria for measuring progress. ex. raise $10,000 to build a prototype

• Incremental steps create feasible goals • Gives room for your idea to grow

• Builds a following of repeat backers

Attainable

If your goals are impossible to reach, you are setting yourself up for failure.

Know You r Target Audience

Relevant

Who will support your campaign?

your long-term objectives.

people in your social networks, and people you don’t know

Your goals need to be aligned with

Time-Bound

Goals need to be set in a timeframe. Make deadlines to keep you motivated.

Your audience includes people within your target market, that share the same passion as you and like your project. Look at characteristics that are similar across the variety of people that will make up your audience to determine if the feel of your campaign should be fun and festive,

sophisticated and professional, or somewhere in between.

Pro Tip | Goals are more effective

if they are written down and have a timetable associated with them.

PLANNING Determine You r Rewards Rewards incentivize backers to give you cash. Rewards should be unique, compelling, and valuable.

To create awesome rewards, focus on what’s in it for the backers. Ask yourself, “Would I pay for this?” The list of possible rewards is endless! We’ve listed a few ideas to get your gears spinning.

Physical Rewards

Digital Rewards

• Finished product

• Video thank you message

• Prototype of your product • Discount bundles for your product

• Collateral (photos, mugs, tshirts, etc…)

• Handmade items associated with your project and target audience

ex. Offering “Student Survival Kits” as rewards for a project that helps college students share notes.

• Name recognition in a visible space

• Social media shout out and thank you • The product itself sent in digital form

ex. Photography, music downloads, and printable goods.

• Handmade downloads associated with your project

ex. Your recipe for the best cookies...like...ever made.

• Skype call with the team • Online demos

ex. Displaying backer names on the wall of your gallery or at the end of a ﬁlm.

Go Digital!

• Handwritten “Thank You” note

Pro Tip | It’s much more cost effective to deliver rewards digitally. This increases your margins without sacriﬁcing value.

Some Ways to Make Top-Dol lar Rewards...

Make Str etch Goals

Get backers involved.

Stretch goals are bonuses added to

them to invest emotionally. Get backers involved and form

if you overfund your project by a

Giving backers a way to directly impact your concept gets a supportive community around your concept.

• ex. Naming a character in your ﬁlm after them. Letting them participate in demos and give their feedback.

Make it personal.

To create high-tier rewards, give backers the chance to interact with you personally. • ex. Skype meeting with the team.

Recognize your backers!

Backers appreciate being recognized for their contributions.

reward levels at no additional cost

certain amount. For example, if your

funding goal is $5,000 and you raise

$7,500, every backer gets something extra. Stretch goals create repeat

backers and foster a collective effort that encourages them to share your

project. It’s a win-win for both parties. Set your stretch goals before you

launch and make sure these additions don’t make you lose money!

Thank them publicly. This will help you make sure your backers feel valued and can also be a great way to market your campaign.

• ex. Social media shout out or recognizing them on your webpage.

PLANNING If You r Reward is the Actual Product…

Criteria for Good Rewards

The process becomes a little more complex. Make

sure your product design has been approved by the

manufacturer and that they can meet your deadlines and ship to you and your backers. Communicate with your

manufacturer to make sure you understand the difference

Unique

Valuable

Realistic

Variety

Good campaigns have a variety of reward levels.

Set You r Funding Goal

price points that hit higher and lower. To determine

costs and still achieve your campaign goal.

in costs depending on your level of production.

What are You r Price Points? $25 is a common price point, but you should include your prices, take into consideration the cost to make

You need to raise enough money to cover your

and deliver the rewards. Set your price higher than

Money Needed for Milestone

your costs but keep it reasonable for backers.

Make a Timeline for Delivery Create realistic rewards that you can deliver in a timely

manner. As a rule of thumb, set a reasonable timeline for when you think you will deliver your rewards and double

it. Your backers won’t be happy if you’re extremely late or fail to deliver. Give yourself plenty of time to deliver on your word! When your timeline is delayed,

Transparency

your backers about

1. Honesty with your

be transparent with what’s going on to

preserve their trust.

(tran'sper nsē)

backers about various

aspects of your project

2. Creates credibility.

3. The solution to the $%&#!

moments. If you’re running

late to deliver your rewards, be transparent with your

(ex. production, materials, labor, platform fee)

Reward Fulﬁllment Costs

Marketing and Promotion Costs

(ex. produce, package, ship)

(ex. press release, sample artwork,

photos, graphics, video production)

Minimum Funding Goal You will have to communicate exactly how backer funds

are going to be used to justify why are asking for a speciﬁc amount. Set your funding goal at a realistic amount and

remember you can raise more than your goal! Be prepared to discover additional costs along the way. Give yourself a buffer and bump your estimate by at least 20%.

backers and let them know.

BUILDING Make You r Campaign Page Your goal here is to build your campaign to capture people’s attention and convert them into backers. Your campaign page includes these key elements...

“Hero” Image

Campaign Description

Catchy Title

Compelling Video

Social Connections

“Hero” Image Your “hero” image will be on your campaign title and used to identify your project. Choose an image that

is reﬂective of your idea. This picture is the ﬁrst thing

pro-tip | Use Gimp.org for

free photo editing to help you

backers see, remember to make a good impression!

“Hero”

Image

polish your campaign page.

75%

Catchy Title and Short Blurb The title of your campaign is the ﬁrst element that backers

read. Be creative and grab their attention! Avoid words like back, fund, give, help, or donate. Use a short description

Catchy Title

Quick explaination of why your project is super awesome!

Visit Project

to explain more about what you are, not what you want.

BUILDING Campaign Description Tell your story and write about your project to compel readers to back you. Begin with a broader explanation of your idea and why you are raising money. Then, work your way into the details. Follow this checklist...

Start by grabbing their attention Why should backers care about supporting your

Focus on what’s in it for the backers

concept is and why it’s valuable. Your goal should

What impact does their contribution make?

idea? Kick things off is by introducing what your

be to captivate people’s attention from the start so they will read more and become a backer.

Clearly explain why you are raising money

What value do backers get by supporting you? Rewards are great incentives. To make it easier for backers to understand what they a getting

in return for their support, thoroughly describe and show pictures (if possible) of your rewards.

State your project goals and let people know

Construct a timeline

honesty is important to build backer trust.

time of your campaign to build credibility and

what you need money for. Transparency and

Dig into the details of your idea Give the reader more info about the speciﬁcs of

Show the progress you have made up to the

share your post-campaign plan. Show backers you have a solid plan for their funds.

your idea and explain exactly why you are raising

Acknowledge risks

provide value and make your idea unique.

obstacles that may arise and how you plan

money. Highlight and elaborate on features that

Introduce your team and why they should trust you

Brieﬂy describe your team members and advisors. Make it personal! Backers are funding your idea and your team. Help backers get to know you.

Show backers you are looking ahead. Outline to overcome them. Let backers knowthey

can trust you to move through the bumps all entrepreneurs face along the road.

Make visual aids you r bestfriend!

• Use charts, diagrams,

infographics, and timelines to illustrate concepts.

Lower your costs

while helping other

students beef up their

Be thorough and keep it simple

• Break up text using logical

portfolios! Recruit student

campaign description. Draft up some different

• Include imagery to

communication programs

There’s no perfect formula to follow for your options with various lengths, pictures, and

content to show friends and family and get feedback. Ask if it’s clear, compelling, and concise before settling on a ﬁnal draft.

headings and subheadings. connect with the reader.

Pro Tip | Use the 60/40

talent at design and visual

on campus to help you build your promo materials.

ratio! Balance your page using 60% paragraphs and 40% visual aids.

BUILDING Campaign Video Having a video is crucial to crowdfunding success. A video easily conveys your concept and

showcases who you are. To save time and money, make your video after you have a written description and static visuals done. This will give you an outline to follow before you hit record.

Write a script

Get quality footage and sound

how you want the video to ﬂow.

If you can’t access one you can use a smartphone.

Make a script and storyboard about

Keep it short

Aim for 1- 4 minutes.

Tell your story

Try to use a video camera to get quality footage. For a cheap and easy way to boost your video quality, invest in a tripod regardless of what

you use to ﬁlm! Choose a location with bright lighting and minimal background noise.

in the video to help your audience get to know you.

Make an awesome ﬁrst impression

End with a bang!

Be creative

to be part of something bigger. Compel

long as it connects with your audience

Share your story. You and your team should appear

Make viewers feel like this their opportunity them to stay on your page and back you.

Your ﬁrst impression is made in a matter of seconds.

Your video can feel any way you want as and reﬂects your brand’s identity.

Don’t forget the ask

End with a call to action to back your

project, join your community, and spread the word about your concept.

MARKETING Ready to go Live? Pre-Market Your Campaign

Secure pledges before you start your campaign by pre-marketing to create momentum right when you launch. Raising ¼ of your funding goal within the ﬁrst week can almost double your success rate! Market your campaign at least two weeks

before you launch. Get your close friends and family invovled to secure funds right when you go live and encourage them to spread the word. See the Campaign Marketing Guide below for tips to gain backers during your entire campaign.

The Campaign Marketing Guide! Rev up Your Email Throw a Party Draft a Press Release Phone a Friend Use Social Media

Rev up You r Email Email your contacts and address them

individually. Include links to your campaign, website, and social media accounts.

Throw a Party Throw a launch party to celebrate and get

your friends talking. Have a computer available to make backing convenient. Factor the cost of your launch party into your budget!

Draft a Press Release Write up a press release to send to blogs, websites, and

other media sources. Here’s what you need to include… • A catchy title and subheading that relates to your audience.

• An opening paragraph summarizing what you want journalists to know ﬁrst. » Who you are

» What your concept is » Your funding goal

• 3-5 paragraphs with more

info about your concept and campaign goals.

Send your release to campus papers and

organizations. When

your release is published ask your alumni relations’ ofﬁce to share your feature via

• A short paragraph with more

email. Remember to include

» Where you are located

what you’re studying.

info about your company. » Who your team is

where you go to school and

• Your contact info.

Include your email, links to social media accounts,

phone number, and your SPURstartup campaign link.

MARKETING Phone a Friend

Hey Grandma!

Call up people you know, tell them about your campaign,

on spurstartup.com! You should...”

and ask them to contribute and get involved.

Use Social Media Amp up the hype using social media and fuel

“I’m starting this awesome campaign

@SPURstartup facebook.com/spurstartup #SPURmystartup

excitement by posting throughout your entire

campaign. Social media is a great promotional tool

and can be used to build relationships with backers. • Always include a link to your campaign page when you

• Post from your personal accounts to draw in

• Have a call to action to back your campaign and to share

• Pinterest is a great tool to start building your brand.

• Be personal. Post directly to other accounts and engage

• Post about your perks and special offers.

post about your project.

posts, retweet, and spread the word.

with people. Generate conversation and avoid one-way communication.

• Be responsive to people that engage with your posts. • Post pictures to visually show your campaign, concept, and the progress you have made. Media stands out more than plain text; increasing the chance that someone will see your post and engage with it.

your networks.

Pin images that resonate with your project.

• Use hashtags to broaden your reach. • Tailor your message to each social media platform’s function and audience.

• Plan ahead of time to make life easy. Create

and send tweets in advance using scheduling apps like Buffer and Tweetdeck.

Pro Tip | Use the “Embed the Widget” feature on

your campaign page to show a real-time view of your campaign and funding progress on any post. People can click on it and directly go to your project!

If you are part of

a club or campus

organization, don’t

forget to share your campaign

progress with other members.

MARKETING Maintain You r Momentum! STANDARD CAMPAIGN MOMENTUM

Don’t freak out if your campaign goes through a bit of

Push Through, Gain More Backers, and Come Out on Top...

Funding Volume

a slump in the middle. This is completely normal.

Beginning Middle

Add new rewards

End

Time

The excitement has come and gone for your launch. Revive that excitement by adding new exclusive rewards.

Create a sense of urgency

Reach for your stretch goals

join in. Add limited-time rewards and special offers.

ends. When you’ve made it to your funding goal

Remind potential backers that time is running out to

Market your success

Communicate when you’ve reached a

funding milestone, like being halfway to

your funding goal, and include how people can help you reach your next goal.

Thank your backers publicly

Thank every backer using social media. Make your “thank you” statements fun and enthusiastic so

Keep momentum going until your campaign

immediately, get people excited about your ﬁrst stretch goal. Release additional stretch goals as you get closer to meeting the previous ones.

Post updates

Keep backers informed on the progress of

your campaign, new rewards, stretch goals, and more by posting using the “Update” feature on your campaign page.

backers are encouraged to share your posts.

CONGRATS! You did it! Now what? Tips for After You r Campaign Ends... • Fulﬁll your rewards, ASAP! • Keep your backers in the loop with what’s happening behind the scenes. Tell them the status of their

rewards (give a heads up if you’re running late!) and

• Update backers with progress you have made on your concept.

• Reach your goals, deliver on your promises, and maintain

continue building your relationship with them.

your relationships with backers. You’ll hit the ground running when it comes time for your next campaign.

Want more? Good. Learn more startup fundamentals and get prepared to use your dollars effectively to take the next steps and start your business.

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