What is Crowdfunding?
In today’s fast-paced, digitally connected world, raising funds for a new business, creative project, or even personal needs no longer requires a trip to the bank or pitching investors. Instead, you can turn to the power of the crowd. Crowdfunding is a modern method of raising capital through the collective support of a large number of people, typically facilitated via online platforms.
For businesses, crowdfunding can be used to fund new ventures, expand operations, develop products, or enter new markets. For individuals, crowdfunding serves as a way to access help for a wide range of needs, from medical bills to personal passion projects. At its core, crowdfunding is about leveraging community support, storytelling, and technology to secure financial backing.
So, What Can You Raise?
The short answer? Anything. From multi-million dollar tech products to quirky passion projects, the possibilities are limitless. Take the legendary story of Zack Brown, who jokingly sought $10 to make a simple potato salad. His idea went viral, and he ended up raising over $55,000 from amused and curious backers. But Zack didn’t just pocket the cash—he used it to support charitable causes focused on hunger and homelessness, turning a joke into a feel-good story of generosity.
Closer to home, crowdfunding in Thailand often takes a more urgent, human-centered tone. Many campaigns are created to support those who have suffered accidents, often without insurance, and need help covering medical expenses or travel costs to get back home. These campaigns, while sometimes divisive in local discussions, have become a lifeline for those in need.
How Do You Launch a Crowdfunding Project?
At first glance, launching a crowdfunding campaign may seem as simple as writing a post and sharing it on social media. But to increase your chances of success, a more strategic approach is required. In recent months, we’ve worked with two organizations preparing for crowdfunding projects and learned some crucial insights. Here’s a step-by-step breakdown of how to successfully launch your own campaign:
- Tell a Story Your story is the heart of your campaign. People don’t just fund products or ideas—they fund people and missions. Share your “why” and help people see your vision. Be authentic, relatable, and clear about the impact their support will have. If you’re raising funds for a business expansion, don’t just say “we want to grow.” Show them how their contribution will lead to new products, jobs, or community impact.
- Engage With Your Funders Once the campaign is live, the work isn’t over. You’ll need to engage daily with your backers by responding to comments, sharing campaign updates, and offering sneak peeks or “thank you” messages. Funders feel more connected when they see that their contributions are valued. Building this sense of community creates momentum and excitement, which can lead to more contributions.
- Run a Parallel Social Media Campaign It’s not enough to set up a crowdfunding page and hope people find it. You’ll need to create a dedicated social media strategy to promote your campaign. Use Facebook, Instagram, LinkedIn, and TikTok to highlight your story, showcase updates, and provide behind-the-scenes content. If you’re running a crowdfunding campaign to launch a product, you’ll want to create countdowns, teaser videos, and testimonials from early backers. The wider your reach, the higher your chances of success.
Platforms for Crowdfunding
While it’s possible to raise funds directly through social media and email, specialized crowdfunding platforms make it easier to track contributions, create a sense of legitimacy, and provide easy payment options. Some of the most popular platforms include:
- Kickstarter: Best for creative projects, product launches, and art initiatives.
- Indiegogo: Similar to Kickstarter but with more flexible funding options.
- GoFundMe: Ideal for personal causes like medical expenses and emergencies.
- Betterplace.org: A platform with a strong focus on community impact and nonprofit fundraising.
Each platform has its unique features and fee structures, so it’s important to select the one that aligns with your campaign goals.
A Local Example: Mosaic Market’s Crowdfunding Project
Mosaic Market [MosaicMarket.co] is set to launch its very own crowdfunding campaign soon. Their mission? To raise funds for a project aimed at training people in commerce and entrepreneurship. The campaign will not only raise financial support but also offer a platform to tell Mosaic Market’s story, attract new supporters, and grow its community. Keep an eye out for announcements on this project—it’s a great example of how a social impact-focused business can leverage crowdfunding to make a difference.
3 Key Takeaways From Our Research
Our work with organizations preparing for crowdfunding campaigns revealed several important lessons that could make the difference between success and failure:
- Telling a Story Matters: The “human element” is vital to any successful campaign. Your story needs to stand out, tug at heartstrings, or excite potential backers.
- Engagement is Critical: Funders want to feel connected. Answer their questions, thank them, and keep them updated. A quiet campaign dies quickly.
- Social Media is a Superpower: Your network’s power can multiply your reach. Build anticipation before launching your campaign, and once live, keep promoting. Use hashtags, video content, and testimonials from early backers.
Is Crowdfunding Right for You?
If you’re planning to raise funds for a new business, product development, or a personal cause, crowdfunding might be your ideal option. It’s a method that not only helps you access capital but also builds a community of supporters around your brand or project. By leveraging storytelling, engagement, and social media, you can turn a simple idea into a funded reality.
Want to Learn More?
If you’re interested in learning more about crowdfunding or would like a copy of our exclusive Crowdfunding Report, send us your email address and we’ll deliver it directly to your inbox. Packed with strategies, platform comparisons, and key insights, this report will prepare you to launch a successful campaign.
And don’t forget to keep an eye on the launch of Mosaic Market’s upcoming crowdfunding campaign. It’s a perfect example of how crowdfunding can go beyond fundraising to support communities, train new entrepreneurs, and inspire positive change.
#CMBC #CrowdfundingChiangMai
