- I was kind of reluctant and hesitant
to raise money during a pandemic.
I wanted to be more empathetic
to what was going on in the world,
but I also had to capitalize my business.
- Welcome to another lovely episode
of Breaking the Blueprint,
your number one spot for underrepresented groups,
to find creative solutions to unique problems.
Straight from the minds of those who have lived it.
I'm your host, Tory.
(recording of audience applauding)
Ah, come on, guys, really?
Ah, for me?
Come on, stop it.
Crowdfunding is becoming an increasingly popular way
for entrepreneurs to fund their business dreams.
In this video, we're gonna hear from an entrepreneur
whose crowdfunding efforts raised $2 million,
during the global crisis.
I'm gonna break down what crowdfunding actually is.
And I'm gonna share nine crowdfunding tips
that will get your business funded in no time.
If you want to check out 23 of the best platforms
to start crowdfunding for your business right now,
just click the link in the description.
Ah, do you taste that value?
Crowdfunding is the practice
of funding a project or venture,
by raising small amounts of money
from a large group of people.
In modern times,
this typically takes place via the internet.
Crowdfunding is a form of private sourcing
and alternative finance.
Alternative is a great word to use here,
because crowdfunding is a valid option for entrepreneurs
who are having a little bit of trouble
raising funds in the traditional sense.
While crowdfunding is a viable option,
how do we navigate it?
Well, we start by talking to someone
who's already walked that path.
Let's go, let's go.
Let's go to Ohio.
- My name is Dawn Dickson-Akpoghene.
I'm a five times founder.
I'm the current CEO of PopCom.
And we've raised over $2 million for our company.
- Dawn, it is an extreme pleasure to have you.
Let's jump right into it, what's PopCom?
- PopCom is an automated retail technology company
with a software solution to revolutionize the industry.
So basically, we make vending machines in kiosks smarter.
I started PopCom really out of a problem
that I experienced as a retailer myself,
selling my shoes, Flat Out of Heels, in vending machines.
And I found that I wasn't able
to collect any data about my customers.
I didn't understand conversion rates.
I wasn't able to re-market or re-target those customers.
I went out looking for a software solution to help myself,
but I couldn't find one.
And I knew that in order to really grow my business,
I needed to develop software
that helped me collect information about my customers,
from the vending machine.
No one can do it, so PopCom was born.
- And how did you feel about crowdfunding?
- PopCom was preparing to raise capital before COVID,
by doing crowdfunding.
At first, I was kind of reluctant and hesitant
to raise money during a pandemic
because I didn't know how people would feel.
I wanted to be more empathetic
to what was going on in the world,
but I also had to capitalize my business.
But the complete opposite happened
because people were really looking
for hope and new opportunities,
and things to diversify their assets and their income.
And so what we did was crowdfund,
which we raised over $2 million in that way,
relying on the people to help us move forward.
- You've been wildly successful with crowdfunding.
I'm collecting tips to share with our viewers
at the end of this very video,
can you share like your personal three tips
on how to raise money with crowdfunding?
- The first thing you must do
is understand your business model completely,
really deeply understand your margins,
understand your customer lifetime value,
understand how you're gonna make money,
and understand how you're gonna return the money
to investors before you even ask for it.
The second thing is really have your due diligence together.
A lot of entrepreneurs say they want to raise capital,
but they do not have the documents in place
to show investors that they can be a good steward
of this capital.
And then the third thing is really understand
your go-to-market strategy and competition.
Know how you're going to make an impact
and what makes your product different and special.
- Thanks so much, Dawn, for the knowledge.
Now let's combine that with my own recipe,
to give you nine crowdfunding tips
that'll help get your business funded.
Number one, understand your business model.
You have to know your company's worth and what to ask for.
Number two, have a clear and concise pitch.
The average word count for a lot
of successful crowdfunding campaigns
is between 300 and 500 words.
Keep that in mind.
Three, make sure your target audience is clearly defined.
Four, due diligence.
Five, build your network before you launch.
There are two types of networks, friends and family,
and then the Hail Mary holders of the big box.
In order to attract the ladder, you're going to want
to have an incredibly tight business plan
that lays out not only why you need the money,
but how you plan on using it
and what's the benefit for them.
Click that link in the description
to download our very own free business plan template,
that will help you tighten up your vision
if you're not already there.
It'll guide you through the steps
of writing company descriptions, setting marketing goals,
and thinking through financial logistics,
aka it'll get you in great ring shape
to go and ask for the big bucks.
Number six, understand your competition.
Number seven,
think of your crowdfunding page as a sales page.
Eight, have a strong story and make a video.
Finally, number nine, offer rewards.
Offering incentives not only gives your donors something
to remember your campaign by,
but it also encourages them to give even more.
Choosing and pricing your reward tiers
is an important step in the crowdfunding process.
There can be some lower price rewards
for people who just want to support you.
And then some exclusive higher end rewards
for the backers with lots of money.
Here's some things that you might think about offering.
$10 gets you a thank you card
with a handwritten message from the creator.
$25 grants access to exclusive updates
on production progress.
$40 gets you a personalized art print
featuring the backers names.
And $50 plus gets you exclusive access
to an online streaming event.
When it comes to raising funds,
it can feel like you're moving a mountain.
There are a lot of statistics saying that you can't do it,
but when it comes to how you should feel
about these statistics that say that we can't,
I turn to Dawn for our final thought.
- The statistics that everyone throws around about women,
black people, minorities, they're irrelevant to me.
I don't internalize those numbers, because if I did,
I would automatically feel like a failure.
Because if someone tells you
it's a 0% chance for you to raise money,
it's not very encouraging to move forward.
So the way that I've been able to succeed
is completely ignoring these ridiculous statistics,
that are really put there
to demonstrate to us that we cannot go further than that.
- Truer words have never been said.
If you like what you heard and want to hear more,
subscribe, like and comment on this video to hear more.
Until next time, adios.
And what were your thoughts on um...
Um, ah, we're gonna be in fun editing.
Eesh, sorry guys.
(gentle music)