“Anyone can use crowdfunding to fund any business idea,†says Slava Rubin, CEO of IndieGoGo. “By making an impassioned pitch to the people in your network and beyond, you are able to put yourself out there and discover what opportunities and funding might come your way.â€
Small businesses can optimize crowdfunding, Rubin says, by using it for presales to demonstrate product demand. “Usually when you are looking for bank funding or venture capital to start your business, you need to prove first that you have a solid, profitable idea,†he explains. “With crowdfunding you have the opportunity to prove there is a need and a demand for your product. People who believe in your idea will fund your venture.â€
Furthermore, by using creative videos to engage others, and using Twitter, Facebook, and e-mails to promote that engagement, you can easily and readily test your marketing message and approach on your target audience, adds Rubin. On IndieGoGo.com, campaigns that use video receive, on average, 114% more funding.