Crowdfunding: The Way Many Startups are Finding Financing

This month's SCORE Infographic has gathered statistics about how the alternative financing method of crowdfunding has grown in popularity over the last 5 years and how small businesses can get the best results from their crowdfunding campaigns.

Crowdfunding Grown Dramatically in 5 Years

According to data presented visually in the infographic, crowdfunding volumes have increased more than 18x since 2009, now topping $10 billion. The average campaign amount is $7,000 and is successful 50% of the time

Secrets to Campaign Success

The infographic also offers data that illuminate several best practices small businesses can employ to reach their funding goals:

  • Ask for less than $10,000 smaller projects have the highest success rates compared to those under $50,000 or under $100,000
  • Include a video - increases success by 250%
  • Get "featured" increases success by 89%
  • Broadcast in social media for every order of magnitude increase in Facebook friends, the probability of success increases from 9% to 20% to 40%
  • Start strong those that hit their goal in the first week are most successful
  • Allow time - 45 days is the optimal length of campaign
  • Choose the right platform Kickstarter has the highest success rate, followed by Indiegogo and Rockethub

Download this month’s SCORE Infographic for the full picture on all these stats.

Bridget Weston Pollack
<div> <span style="font-size: 13px; line-height: 18.0049991607666px; text-align: justify;">Bridget Weston Pollack is the Vice President of Marketing & Communications at the SCORE Association. In this role, Bridget is responsible for all branding, marketing, PR, and communication efforts. She focuses on implementing marketing plans and strategies for the organization to facilitate the growth of SCORE’s mentoring and trainings services.</span></div> <div> <a href="http://www.score.org" target="_blank">SCORE.org</a> | <a href="http://www.facebook.com/SCOREFans" target="_blank">Facebook</a> | <a href="http://twitter.com/scorementors" target="_blank">@SCOREmentors</a> | <a href="https://www.score.org/author/Bridget-Weston-Pollack/all-posts">More from Bridget</a></div>

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