Writing a compelling crowdfunding pitch for investors is one of the most difficult parts of any startup’s fundraising campaign.
For fledgling companies, this is probably the first time you will confront the task of writing a pitch unless you’ve had previous experience with writing pitches for venture capitalists and angel investors.
Even with that experience, creating a crowdfunding pitch that converts prospects into viable investors is a completely different experience.
Without optimizing your crowdfunding pitch, you’ll lose prospective customers and investors almost immediately.
What Makes a Crowdfunding Pitch Successful?
- Your pitch must grab the attention of the people who matter immediately – the crowdfunding market is saturated with terrible concepts and sketchy products.
- You will need to establish how your product is superior immediately and demonstrate why people should trust you in a limited amount of time.
So in short, yes, writing effective crowdfunding pitches is difficult.
But it isn’t an impossible task.
Here’s what you need for a great crowdfunding pitch:
Become a Masterful Storyteller
Those third grade English lessons that you learned in elementary school are still pertinent when you’re crafting an engaging story for your crowdfunding pitch.
The basic questions you’ll be answering are the same – the who, what, when, and why. There’s an emphasis on why as it’s often left out, a mistake early-stage founders often make.
Your job is to answer these questions in a cohesive, seamless fashion that makes sense to your target reader. Work to drive home why your product exists, how it’s better than your competitor’s, and the reason people should care.
Passion is important, but you’re not selling your passion. Use it as a sales aid to get people excited about your product. You must remember that you’re selling a product, so you need to make sure that your product can deliver on high expectations.
One thing you must do is answer these questions in the correct order.
For example, the majority of people won’t immediately care about who you are until their attention is fully on you. It’s vital that you give people the answer to “what” as quickly as possible to grab their attention.
Here’s how you should approach your answers:
- What: Describe your product and how it solves a problem.
- Who: What’s your company’s story? Who are you and why should people care?
- Why: What’s the reason you made this product? How is it better than your competitors’?
- When: On what timeline do you expect to ship your product?
- Where: Where can people get your product after launch.
Here’s how the pitch between venture capital firms, angel investors, and crowdfunding investors differ: the pitch you make to the public needs to be tailored to a broader audience who may neither be as technologically or business savvy as your typical audience.
This means you need to persuade the public that your product is viable while also proving that you are able to bring it to launch in a timely fashion. Nothing destroys a company faster than a crowdfunding campaign that over-promises and under-delivers.
The general public may not be the business-savvy venture capitalist that you are typically in contact with, but it’s up to you to persuade them and demonstrate that you have a solid business plan and strategy.
The broader public will only pledge if they have trust in you and your company and feel that the money they’re forking over will result in a physical product in their hands. It’s best to demonstrate legitimacy to the public by being completely transparent about the process at all times.
Tell your audience what capital you need to push the product forward. How much will you spend on product development? What marketing are you focused on and how much will you spend? These are the questions that you should answer to put a potential customer at ease.
Don’t Skip Out on Visual Media
While we’ve been mostly focused on the written portion of your pitch, don’t disregard the value of multimedia. For a crowdfunding pitch to be successful, you must have quality photos and videos.
If you aren’t experienced with filming and editing videos, you should hire someone who is. Your pitch should be edited down to a two-minute video.
Note: The first ten seconds are vital. You need to grab your audience’s attention in ten seconds or less. There will always be situations where a longer pitch video makes sense and is successful, but by being short and concise, you’ll have the best opportunity of hooking people quickly.
Having multiple forms of your pitch in different media allows the people who aren’t going to read the text to experience your product and hear your pitch. Everyone consumes information differently. This also allows your pitch to be shared on different channels.
Video gives you a great opportunity to answer the “who” portion of your proposal – who you are and why you’re doing what you’re doing. Take time and leverage the diverse personalities on your team.
Start Your Pre-Launch Strategy
You should have a pre-launch strategy.
Before your campaign even begins, set up your company’s blog and social media accounts. Get your brand voice in place and start marketing your product.
Without all of this, your pitch won’t be as successful as it could be. You need to have a destination for prospective customers to find you. Having your campaign on a crowdfunding channel is great, but having your own company blog gives you another channel for customer acquisition through SEO.
Keep your pitch consistent across every platform – your voice and story both need to be well-polished before your campaign page goes live.
Write Your Story
It doesn’t matter how great your product is, you won’t be able to get anyone to buy it without a good story. Successful crowdfunding pitches persuade prospective customers that your product will improve their life.
While it’s easy to get absorbed in the technical aspects of your product, people don’t care. They care about a story about why they should care. You can easily have a passion for anything, but customers aren’t purchasing your passion. They’re buying your product and that has to be the focus.