Nowadays, successful crowdfunders declare that they also used crowdfunding as a means to validate demand and build online communities to support them. The more enthusiastic a community becomes the more successful the your idea will be. Apart from raising seed funding over a platform, a direct connection between the ‘crowd’ and the creator is built so the support is of great value. Most of the times backers take very personally this support and work together with the creator of the campaign. On the other hand, the psychological pressure from the community that supports a project, creates an obligation to the team which leads at the end to successful campaigns.
Moreover, projects that have the support of backers rarely fail. To be more precise, the failure percentage is 9% and even in that case, a founder that failed due to factors outside his control can still receive VC funding. The main substance in the relation between backers and the team of a project is not only the feeling of obligation that is generated to founders, but a dynamic relationship that follows many stages of the project after the campaign. Let’s take a look at the backers’ profiles.
Certain stereotypes combine those profiles, which have a great impact on fundraising. According to surveys, backers favor certain individuals, such as white males instead of women.
However, women surpass men in crowfunding procedures (Gender, Homophily and Activism in Crowdfunding) shows that the 13% of women are more likely to succeed in raising money on Kickstarter than men. In addition,
the survey indicated that this success comes from the support of other women, especially when the female founder is operating in a male-dominate space. So, backers can join communities to support campaigns for many different reasons or
even social causes.
Despite the diversity of backers, researches also indicate that they are good at making decisions and adopting innovation. People that deal with technology, love to experiment new ideas and spread the information.
Undeniably, crowdfunding is changing how entrepreneurs bring new products in market. Thousands of innovators build brand awareness all while still in the product development process.