The_Art_Of_Crowdfunding_(SME_Support_Centre)__.pdf

A presentation on crowdfunding for SMEs in Kenya

1. The Art Of Crowdfunding

Fundamentals of Crowdfunding


In collaboration with SME Support Centre

2. Thundafund
Thundafund is Africa’s leading reward-based
crowdfunding platform.
Operating in South Africa, Kenya and The Gambia

3. What is crowdfunding?


Crowdfunding is an online way of
raising money for a project through
small contributions from many
people.

4. Question 1
Have you supported a crowdfunding campaign before?
(a)Yes
(b)No

5. What Crowdfunding is not
1.Charity

You are not asking for handouts,

You are offering your supporters value in exchange for their contributions

2.Loan

You’re not required to repay your backers.

All you have to do is deliver their rewards in time and

Share regular project updates

6. How does crowdfunding work?

7. Your Campaign

8. Campaign requirements

1.Campaign goals

2.Campaign story

3.Campaign video

4.Rewards

9. Example Of A Campaign

10. Example Of A Campaign

11. Your Campaign Goals (1.0)
•This is the amount of money that a person or
organization aims to raise through a crowdfunding
campaign.

•It is the target funding amount that is set before
launching the campaign and represents the total
amount needed to accomplish a specific project,
venture or goal.

12. Your Campaign Goals (1.1)

My contribution makes a difference

Set realistic goals, with your network in mind


Phases - break down big goals


Duration - 30 / 45 / 60 days


Urgency works! Shorter campaigns tend to do better,
30 to 45 days

13. Question 2
If you were to launch a crowdfunding campaign for your
business, what would you use the funds for?
(a)Product Development
(b)Marketing and Advertising
(c)Operations and Expansion
(d)Paying Off Debt
(e)Other

14. Your Campaign Story (2)
Story

1.Who are we?

2.What do we do? (our products and services)

3.Why we need your help

4.What’s in it for you?

5.Our funding goals & how will we spend funds raised?

6.Thank you in advance

15. Your Campaign Video (3)
Video

•Duration - 90 second - 3 minutes max

•Answer the questions in your story briefly

•You can even use your phone!

Campaigns with personal videos raise 105%
more than those that don’t have them.

16. Your Campaign Rewards (4.0)
-Powerful tools for any crowdfunding
project.

-Incentive to backers to pledge their money
according to how much they’re willing to
contribute.



What’s in it for me?

17. Your Campaign Rewards (4.1)

18. Your Networks

19. Your Network (1)
First degree contacts (“The Committed”):

•People closest to you, the project and the
company e.g. friends, family, close
supporters and trustees

•Ask these people to reach out to at least 10+
other people

20. Your Network (2)

Second Degree Network (“The Inspired”)

•People who know you, the project or
the company e.g. mailing list &
Facebook friends/followers.

•These people take more effort to
inspire to give to your project – you
need to invest in creating trust with
these contacts

21. Your Network (3)

Third Degree Network (“The Shoppers”)

•Everyone else! – these people don’t
know who you are, they can be
reached through endorsements,
marketing and attractive rewards.

You can’t reach these people without
engaged First and Second Degree
networks.

22. Communication plan

1.List everyone you know

2.Categorise them into the 3 network groups

3.Identify the channels you will use to reach
out to each group/contact (WhatsApp,
Phone call, email, social media)

4.Create personalised messages

5.Set daily communication goals

23. •First hours/days are likely to define your
campaign

•Take time to prepare for the launch

-regular reminders to your networks as the
launch approaches

-social media countdown

•Build early momentum, ensure your close
network back your project as soon as it begins

Campaigns that can gain 30% of their goal within
the first week are more likely to succeed.

Your Campaign Launch

24. What Next/Deliverables


1.If you are interested in joining our upcoming cohort, reach out to
[email protected]

2.Define your crowdfunding goals with a breakdown of how funds will be spent

3.Map your target audience (into the 3 categories) and identify the channels you
will use to reach each group/individual

4.Create a list of 3 rewards you can offer your potential backers

25. Thank you!!!

Contact Us

Email: [email protected]