Though funding is often the main goal of a crowdfunding campaign, it can also a fantastic way to gain visibility and grow your customer base.
Some additional ancillary benefits of a great fundraise are:
- Traction
- Social proof
- Press coverage
- Marketing
- Potential investor interest.
Traction. When conducting a crowdfunding campaign, you may also generate traction for your startup. This can be demonstrated through large amounts of backers, pre-orders of the product or service your startup offers, or a significant amount of media interest. Generating traction is an important step to prove success and prepare for investor pitching.
Social proof. When potential clients show interest in your startup’s product or service, you’ve generated social proof. This is essentially showing that other people believe in what you’re doing. Another way to generate social proof is to take on advisers prominent in their respective (related) fields.
Press coverage. Helpful media coverage could include a feature on your company in a popular news station, blog, or print publication. Press coverage will generate more eyes on your campaign and create brand awareness for your startup. It's also a great way to bring in backers outside of your personal network.
Marketing. Throughout the course of your crowdfunding campaign, you’ll have the opportunity to engage supporters and grow your audience. The result? Your campaign doubled as marketing for your startup!
Potential investor interest. Investors are interested in ambitious entrepreneurs whose ideas have garnered traction and social proof. Whether they read about your new product on a popular blog, or hear about your innovative campaign from a friend, a successful crowdfund is a great way to capture investor interest.