Guest blog by Arthur van de Graaf:

FIRST AID FOR CROWDFUNDING III

In this series of columns, Arthur van de Graaf, partner of ImpactCity The Hague, will answer the most frequently asked questions about crowdfunding.

How much can I collect with crowdfunding?

In my previous column, I answered the question: “when can you start crowdfunding?” The question that often follows is: “how much can I collect with crowdfunding?” The most obvious answer is that it depends on your project. I will list a number of factors that are important for answering this question.

The organisation

First, the organization that carries out the project plays a major role. Are you in this alone or can you count on a team of people who all have their own qualities? The quality, available time and commitment of your team all have a major impact on the success of your campaign.

Fans, family and friends

Secondly, the question is whether you can already count on an existing group of “fans, family and friends” who want to and can contribute to your crowdfunding campaign. Can people relate to the reason why you started your initiative or business? And is the message from your company simple, understandable and easy to pass on or, on the contrary, very complex and/or technical?

Impact or efficiency

Thirdly, you need to know what you offer people in exchange for their (financial) support. Campaigns that show people a high financial return and campaigns where products are brought to the attention of the masses with the help of a marketing budget can potentially raise a lot of money. However, even when financial returns are not the main objective, a large amount of money can be collected with a large group of people. These are campaigns with a high impact.

What do you need

If these and other relevant questions are carefully considered in advance, you can prevent your campaign from failing before the first 10% is collected. Of course you want to go for 100% or even more of your target amount.

Our experience shows that with a relatively small reach and a personal campaign you can collect between € 5,000 and € 20,000. If you want to collect between € 20,000 and € 50,000, you usually need a (small) team to realize a successful campaign. If you want to raise more than € 50,000, offering financial returns and the effective use of PR and marketing/advertising can be a solution.

More info?

Do you want to know what you can do for an optimal start of your crowdfunding campaign, then visit us during our Coffee and Crowdfunding morning. This is organized every Tuesday between 9 am and 10 am in Apollo 14 on Saturnusstraat. Here you will also find ImpactCity The Hague, where startups that work on innovative projects are supported.

If you want to know more, send an email to arthur@startleanfunding.com.

A cup of coffee will get you started!