This article is a crosspost from Nuwait.
Crowdfunding is an alternative form of funding that allows early entrepreneurs to finance their ideas or products, by leveraging the power and donations of the community, online.
This method offers entrepreneurs the benefits of versatility and flexibility by finding different sources of funding, rather than burning all their savings or committing valuable stakes to early investors. It also helps them get early adopters and build a community around their products or services.
In 2010, Saleh Altunaib, an accounting graduate, partnered with Mohammed Albesharah to establish Jaribha, the first crowdfunding platform in Kuwait.
Jaribha, which means ‘try it’ in Arabic, was launched in January 2015. According to the cofounders they have so far raised more than $50,000 for projects.
Altunaib shared with Nuwait the best practices for launching a successful crowdfunding campaign.
Be transparent. In order to secure a successful campaign the project creator needs to explain thoroughly to their supporters why they need the requested amount of money and what exactly it will be used for. It is recommended that they explain their project, and the funding goals, in an easy and personal way, so people can adapt quicker.
Never stop selling. Persistence in spreading the word about your project through family, friends and social media channels is crucial to the success of any crowdfunding campaign.
Act locally. We believe in globalization, but still believe that crowdfunding can excel when it understands, speaks and acts locally. A project that addresses local needs, and targets local community supporters is more likely to achieve its funding goals rather than a project that seeks international crowdfunding. Waseelah is a successfully funded project that gathered $10,000, through Jaribha. They wanted to create a theatrical play about the Arabic maqamat (melodic modes used in Arabic traditional music), raise awareness of the different Arabic talents and promote self-expression.
Videos, videos, videos. Using pictures and videos for explaining your idea and why you need the money will help attract more backers.
Give rewards. The most successful project funded through our platform was Wadha, a professional Kuwaiti racing team that aimed to reach Le Mans 24, the world's oldest annual sports endurance car race. They raised $50,000. In addition to word of mouth and social media marketing efforts, the campaign offered rewards for whoever funded the project, including limited edition apparel, that's only available for those supporters and not sold elsewhere, and the possibility of placing a picture of the supporters’ choice on the racing car.
Feature image via Pixabay.