Crowdfunding as Growth Hack Tool

(Image source: hockeystickstrategies.com)In our earlier posts we have been sharing how crowdfunding has been adopted well by startups and some in the corporate sector. These apart, and based on my experience working with global platform teams and individual startup projects, it’s venture-funded / growth companies that are most likely to benefit from running a crowdfunding campaign.

Need of the hour for growth companies – those startups which have got their idea validated, a decent set of early-adopters and possibly seed-funding too – is to scale up as the next logical step. In the quest to get more customers and turn big (10-50X), some companies end-up spending more on traditional marketing methods – ones which larger brands can easily match and beat. Instead these growth companies need to explore more out-of-the-box solutions to engage with the large community and attract potential customers.

Crowdfunding project with an initial investment - enough to cover costs of an effective pitch video as well as online and offline resource(s) during the course of the campaign Рhas a better chance of turning the campaign into a success and realising larger goals in quick time. For growth companies to compete with established firms, how creative one gets with their crowdfunding campaign along with sustaining the community outreach momentum can make a huge difference.

Want implementable strategies to turn your ideas or projects successful? Write to me on vinay@crowdnavigator.com, I’ll be happy to help.

(My recent article on YourStory: Sony joins the crowdfunding bandwagon. Find out other companies that have leveraged crowdfunding)