How to Run a Successful Crowdfunding Campaign and Raise the Startup Capital you Need

team group win

team group win

Within just a few hours of taking their equity crowdfunding round live on Uprise.Africa, Drifter Brewing Company, Cape Town-based craft beer manufacturers, raised more than a million rand in growth capital to help accelerate their expansion and push their brew into global markets

The company went on to further raise a total of R3,889,000 from 235 local investors by the end of their campaign.

Drifter’s success is proof of a well-executed crowdfunding campaign – they had compelling story to tell, made use of their networks and publicised their crowdfunding offer.

With more crowdfunding platforms coming into the South African market – each offering a diverse range of benefits – it’s important for entrepreneurs who are looking to take advantage of this option to do it right.

Every successful campaign takes three things – time, money and commitment to run your campaign.

To find out what else is needed to run a killer campaign, take this advice from Lisa Young and Sasha Benjamin from one of South Africa’s oldest crowdfunding platforms, Thundafund, from an interview last year.

1. Deliver a winning pitch

  • A campaign pitch that explains the ‘who, what, where, how and why’ of your campaign.
  • A maximum 1 – 3 minute pitch video.

2. Knowledge of your backers/potential investors

  • A thorough understanding of your target audience.
  • Between 4 – 8 unique project-related reward for backers that are in the form of retail, recognition and/or experience. In the case of equity crowdfunding, backers invest in early-stage businesses in exchange for equity

3. PR and marketing

  • An active, updated and engaged social media presence such as a Facebook Business Page people can like and a Twitter account.
  • A marketing and PR ‘campaign plan’ covering pre-launch, launch, mid-campaign, pre-closure and closure.
  • A fundraising/marketing savvy campaign team-leader and/or team.
  • Thorough research on previous similar successful campaigns.

4. Use your network and understand audience

  • Inform your immediate network of your soon-to-be campaign and excited them about backing your campaign upon its launch.

5. Time

  • A realistic, suitable and defined crowdfunding goal.
  • A set time-limit suitable to your crowdfunding goal and campaign mission.
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Lebohang Thulo
Lebohang Thulo
Lebohang Thulo is the editor of SME South Africa. She enjoys keeping up with the country’s exciting and fast developing entrepreneurship ecosystem. You can find her at @lelele3

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