Crowdfunding can be a lifeline for start-ups, growing businesses, and even struggling ones. Whether you’re building the next big thing or just trying to survive the next few months, it’s an option worth a serious look.
Part of the appeal is that crowdfunding comes in three different flavours:
- Equity funding (giving away shares)
- Loan funding (borrowing from the crowd)
- Rewards or donation-based funding (where you give perks instead of repayments)
No matter what kind of business you run, if you’re launching a new product or just keeping the lights on, crowdfunding might be just what you need.
But how do you actually make it work? You know, since there are success stories of people raising millions, but also plenty of horror stories where nobody coughed up a penny?
We hear you. Here’s what you really need to know to ensure crowdfunding success.
1. Tell a great story
People back people, not just ideas. They want to know who you are, why you started your business, and what’s driven you to this point; they even want to hear about the times you fell flat on your face (almost more than your successes). So be yourself.
Don’t polish the truth too much, either. Your story is your pitch. Be honest, be real, and make it something they’ll remember.
2. Offer great incentives
The best incentives aren’t expensive for you but feel valuable to your backers. Think exclusive early access, limited edition products, behind-the-scenes experiences, things that make people feel part of your journey without eating into your margins.
3. Don’t pitch too high
Be ambitious, sure. But don’t be greedy. Ask for what you actually need, no more, no less. Setting a realistic target builds trust and increases your chances of hitting your goal. People are far more likely to back a campaign that’s 80% funded than one that looks like it’s going nowhere.
4. Create a sense of urgency
Humans are terrible at doing things tomorrow; we tend to act immediately or not at all. So make it clear what will happen if they don’t back you now. Whether that’s missing out on a reward, losing a chance to shape your project, or seeing the business they love fizzle out before it even starts.
Tight deadlines and limited offers work. Use them.
5. Make some noise
You can have the best pitch in the world, but if nobody sees it, you’re finished. Get loud. Email your contacts, post on your socials, talk to journalists, and find a few cheerleaders who’ll help spread the word. The more excitement you generate in your network, the faster momentum builds.
Where crowdfunding stands in 2025
Crowdfunding isn’t just for quirky gadgets anymore. The UK alternative finance market, including crowdfunding, hit over £14 billion in 2024, according to the latest data from the Cambridge Centre for Alternative Finance. Equity crowdfunding alone accounted for £650 million.
Even with this growth, it’s still tiny compared to traditional lending. UK banks lent over £60 billion to SMEs in 2024. Crowdfunding is still a drop in the ocean, so don’t kid yourself, you might still need to talk to a bank manager (sorry).
How we can help
If you’re serious about crowdfunding and how it could work for your business, we can help you figure out the best way forward.
Contact us to chat or grab your free copy of our Beginner’s Guide to Crowdfunding today by emailing [email protected].
