This book provides an overview of the different crowdfunding solutions, whether they take the form of donations with rewards, loans, or equity. The various solutions are presented largely with the participation of the platforms themselves. I understand this perspective, as these actors have strong knowledge of the processes involved in raising funds from the crowd. However, since several platforms are only briefly mentioned while one is explored in greater detail through an interview, it tends to highlight that platform too much at the expense of the others.
For this book, I would have appreciated a comparison table for each type of fundraising, comparing the different platforms. Instead, the authors simply tell us that we should remember to compare them ourselves. When we buy a book about crowdfunding, we implicitly expect some initial guidance.
What I was most looking for in this book were testimonials from project founders who succeeded, but also from those who failed, and an explanation of why they failed. Strangely, a series of seven testimonials from project founders appears at the end of the book—after the conclusion. I find this structural choice unfortunate, because this was the part I was most interested in, yet it only appeared after the conclusion. This was a real disappointment.
One of the main points highlighted in the book is that platforms like Kickstarter are essentially self-collection tools. It is up to us to find the contributors; it is not the platform’s community that comes to us. By contrast, savings or investment platforms tend to rely much more on their own communities.
In reality, however, the situation is more complex. Fundraising campaigns are often a mix of these strategies. The launch usually begins with family, friends, and early adopters, allowing the project to reach a first milestone that can then create leverage for the rest of the campaign.
Communication is essential: for example, responding to every contributor. You should not rely on the platform itself to build the community you want. That community must be created by you—and well before the campaign begins.
Fundraising campaigns are time-consuming. It is important not to underestimate the effort required before, during, and after the campaign.
Timing also matters. The most active periods are usually the first and last weeks of the campaign. Campaigns should not be too long, and platforms themselves are often the best advisers for determining the optimal duration.
Crowdfunding campaigns do not only generate money. They also validate a market study, test the viability of a project, and open the door to future customers and partners.
The book is structured into seven chapters:
- Discovering the world of crowdfunding for businesses
- Understanding the keys to crowdfunding: savings platforms or self-collection platforms
- The world of donations
- The world of lending
- The world of equity
- The different professions within crowdfunding
- Preparing and successfully running a fundraising campaign
Publisher: Eyrolles
Release date: February 11, 2016
Pages: 180
Price: €22