Jon Worren, Entrepreneur in Residence at MaRS Discovery District, recently joined us at Innovation Factory to discuss a hot topic in today’s entrepreneurial ecosystem: crowdfunding.
Jon shared great general points on crowdfunding, weaving in examples of startups that have taken very different approaches to their campaigns. He introduced us to the three main types of crowdfunding campaigns: community-based, media-driven, and marketing-focused.
Startups taking a community approach to their campaigns focus on building a community of advocates prior to the campaign launch. Primary tools are Facebook and LinkedIn, where a minimum of around 1,000-2,000 interested parties are reached with the goal of their monetary support helping the startup reach its campaign goal.
Media-driven campaigns are heavily PR-focused, with content being packaged in the hopes of driving media interest to generate editorial content, and in turn converting interested readers into campaign supporters. Jon noted that media have become fatigued with crowdfunding campaigns and are less likely to pick them up as newsworthy lately, making this a difficult campaign strategy at which to excel.
Lastly, marketing-focused campaigns take an integrated approach, using social media tools, as well as PR and community outreach. Jon pointed to this campaign strategy as working best out of the three, as it targets a number of outreach and publicity tactics, making for well-rounded exposure.
Thank you, Jon, for helping us get acquainted with the different types of crowdfunding strategies!