Years ago, before crowdfunding platforms were on the scene individuals or organizations would turn to banks and traditional investors to raise capital to start or grow their businesses. In the UK to date there are around 600 crowdfunding platforms allowing you as a business, brand, charity and entrepreneur to share your business ideas and growth strategies (if you already have an established business) online to raise capital. Investors on crowdfunding platforms invest in or donate to crowdfunding projects in return for a potential profit or reward. Crowdfunding platforms have changed the landscape of how individuals and organizations are getting funded. Investors are pumping billions of dollars into the industry yearly through crowdfunding platforms. Since 2014, investors staked over £1.6 billion a year on crowdfunding (sippclub, 2014) which has helped to introduce new exciting businesses into the market.
The Crowdfunding Center published some research pinpointing that less then a third of crowdfunding campaigns achieve their investment target. On average 70% to 90% of projects, dependent on the funding platform used fail to hit their targets.
Why You Must Add Video…
Kickstarter did some compelling research and uncovered that fundraising campaigns containing video succeeded at a rate of 50% as opposed to 30% for those campaigns without…. That’s a 20% success margin! Indiegogo further reported that campaigns with a pitch video raised 4 times more funds than campaigns without one.
Why Are Businesses Seeking Funding Not Using Video For Campaigns?…
Often the case for businesses is coming up with the right concept to film and promote the product/service for the business. Also finding the right creative media/production agency to help tell that story to raise capital. Lastly budget, cash is always hard to obtain when starting a business or when raising capital to expand and grow the business.
Planning & Executing The Right Video…
A pitch video has to set the right tone, be really energetic and contain tons of key useful information. Investors want to know and trust that you know your industry. The video has to be vibrant and the people featured within the video have to be sharp and prepared (learn your lines!). The industry norm for a pitch video is a maximum of 5 minutes. The highly successful pitch video we created for Work Club was 5 minutes and 28 seconds in length. It helped Work Club achieve £250k in a record time of 4 days so it really does depend on how interesting and well produced the video is and how sellable the concept is to investors. Crowdfunding.io reported that fundraising campaigns with videos under 5 minutes are 25% more likely to reach their goal than those with longer videos, again it all depends on the type of business and how well it engages the concept to its investors.
What We Suggest…
2. Know your business inside out, from your key offerings down to your customers. This will help a lot with setting the right tone and pace for the video.
3. Build a concise plan focusing on why you are in business and what problems your business will solve this will help to map out a good video concept as you will have a lot to talk about.
4. Understand and know your market through and through, this needs to be demonstrated in the video.
5. Have a clear figure in mind that you want to raise. This is really important as this will determine how much money you want to spend on creating the pitch video. If you want to raise $500k you will need to spend at least 5-10% of that on a pitch video.
6. Work with a professional agency who have experience in building successful pitch videos they will have the ability to take your idea and build a structured story that helps to sell the business to investors on crowdfunding platforms.
7. Involve partners, clients, staff and yourself in the pitch video, investors love authenticity so the more key people the better!
8. Contact us.