The modern days are ones of immense potentials, and startups are coming up with innovative products and solutions to simplify human lives. Such organizations need money to realize their potential and look for crowdfunding initiatives to get the necessary funding. The sheer surge in how-to videos on crowdfunding suggests that organizations are turning to video to give flight to their investment initiatives.
Last year, crowdfunding raised more than $34.4 billion globally, thus illustrating the preference of the crowdfunding model among consumers and entrepreneurs. You will be surprised to learn that projects with video have a 50% chance of succeeding in crowdfunding initiatives. This is significantly higher than the 30% chance of success in initiatives without video. Also, crowdfunding initiatives that come with a pitch video raise an average of 4 times more funds than campaigns that do not have video.
The above facts are highly encouraging, and you must be tempted to leverage video. Here are seven tips that will allow you to make the most of the video in your startup's crowdfunding journey.
A pitch video should be long enough to inspire the audience and strike an emotional connection with them. However, you need to realize that the average viewer has a limited attention span, and creating a long video would cause them to lose interest. Studies show that pitch videos that are shorter than 5 minutes have a 25% higher possibility of reaching their goals.
Understand that every crowdfunding campaign is unique, and it is best not to mimic others. Study the analytics of your video publication platform to identify how long your viewers watch the video content. The analytics section of YouTube gives precise data of the user drop points. That will give you an idea of the preferred video length.
Further, if things go haywire, most video sharing platforms give you the provision of altering the length of the video mid-campaign. If your pitch is not successful at the first attempt, you can relaunch it after checking on the analytics for the ideal video duration.
In the highly competitive business world, it is not just about what you say in your crowdfunding pitches. The way you illustrate your point, and the visual appeal of your video helps people form the first impression about your brand. Choose an appropriate location and film your video in decent lighting.
Try to avoid mixing natural and artificial sources of lights as those have varying temperatures. Make sure that you color correct and edit your clips before making them into a crowdfunding video. If you do not have ample video footage, you can use the media library of tools such as InVideo to complete your video creation.
To get the best results of your crowdfunding initiatives, make your pitch video tell a story. The winning formula to a successful pitch involves three parts.
The beginning of your story is the section where you highlight the user problems. Here, you talk of a world without your product or service and the existing problems. While you highlight the problems that your product will solve, you do not talk about the product in this section. The focus of this section is setting the stage for the business offering.
In the middle section, you introduce the product and illustrate how this solves the problems discussed earlier in the video. Get to the details of the unique features of the product and offer a glimpse of how the world will look when your product is successful. This section should highlight selling the product.
The final segment of your video should remind the audience that all of it will be possible only with their support. Paint a vivid picture of how your product will revolutionize the world and persuade your investors into parting with their hard-earned money.
The people who invest in crowdfunding initiatives are risk-takers who appreciate putting their stakes in a product that isn’t fully evolved yet. However, most such investors will not be comfortable in investing in a pipedream. Through your video, you need to convince such investors that you are working on the product development and have crossed the initial milestones.
That way, they will have credibility on the effectiveness of your product and faith in your abilities. You can shoot video clips of the different stages of product development and show how far you have come. A timeline of your product development journey will help to put things into perspective and earn the trust of potential investors.
While product development is important, you cannot undermine the importance of a tangible product in convincing an investor of its utility. When you have a physical product, it is easier for you to illustrate its working, utilities, and working. Thus, if you are planning to launch an innovative solution, it is a good practice to create a video illustrating the working of your prototype.
If it is not feasible to do that, you can use animations to demonstrate your picture. The idea behind showing your product is to help the end-user form a mental image of your business offering.
Putting aside the utility and innovation of your product, you need to understand that people invest in people. With entrepreneurs like Elon Musk and Mark Zuckerberg being the modern-day icons, your investors expect to put their money in the hands of someone impressive. While you do not have to be on screen for the entire video duration, appearing on video for a while will allow the viewer to gauge your body language and self-confidence. Be true to yourself and speak your mind while recording the clip. Understand that it is okay to mess up as those clips can be done away with during the editing. If necessary, you can use a teleprompter device. However, restrict the teleprompter to conveying just the bullet points. Failure to do so may make you come off as too scripted.
The video quality is one of the most important aspects of your pitch, as this allows a potential investor to gauge your sincerity. Avoid shabby footages as that compromises your reliability. Invest your efforts in color correction as that instills consistency in the video.
If possible, try to add subtitles to your video to improve the reach. We also recommend the use of the brand logo, tagline, and brand colors in the pitch video that makes you come off as professional.
With the above tips, you are now ready to begin your crowdfunding journey. As you pitch videos to crowdfund your dream project, we wish you the best of luck in all your business endeavors.
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