The well-established crowdfunding platforms around the world, like Arikovani for the MENA region, help entrepreneurs and startup teams to begin their businesses much easier and without the need of seed stage angel and VC investment.
Crowdfunding is a great way for risky for investing ideas to come to life as businesses, but it is not as simple as it sounds. There are various reasons why many project owners struggle to meet their funding campaigns.
Despite the fact that media often focuses on the success stories the entrepreneurs should never underestimate the importance of studying failed campaigns. A great example of bad crowdfunding campaign story is Mighty No. 9 campaign.
The high expectations of this particular crowdfunding campaign, which was marketed in the form of the honorable succession of the popular game series Mega Man, has been overshadowed by delays, adversities, and deceptive marketing. When the developer team eventually completed the game, the supporters had come across a product that was far from the promised. Even worse, the creator of the project, Keiji Inafune, had taken the liberty to launch a crowdfunding campaign for another project, while the supporters were waiting for the game to be developed.
If you think that such a bad scenario is rare, you’re wrong. In Kickstarter, the world’s most popular crowdfunding platform, only 36% of the projects are successfully completed. Mighty Number 9 is not included in this number along with all other projects that have reached their funding goals but were unable to deliver the promised results for one reason or another.
Bad management failures are less common on platforms such as Arikovani and Bulusum.biz, which have better control over the campaigns that are being approved. Crowdfunding carries many challenges, especially when we talk about raising money for very innovative technology and hardware-oriented projects. The possibilities for failure are many as there are many challenges that the entrepreneurs will face. By carefully sifting out the applicants, Arikovani team turns the odds towards success for both entrepreneurs and supporters.
Crowdfunding campaigns are not a piece of cake. Many entrepreneurs underestimate the importance of putting enough time and effort into the process of raising money from the crowds. This often backfires, which is why many campaigns fail. Don’t risk the future of your project and spend the time to learn about the specifics of crowdfunding. On Arikovani blog there are numerous articles that will give you great tips and advice on how to nail your first (or maybe next) crowdfunding campaign.
By studying the stories of other projects, you have the opportunity to establish what works and what doesn’t. But this rule doesn’t always apply – some highly-promising campaigns such as Ouya, a “revolutionary” console that allows Android games to be played over TV that raised almost $9 million, failed painfully after the successful fundraising.
Undoubtedly, crowdfunding is bringing the business investment world to new levels, but it doesn’t have to be idealized. It definitely is not a magic, but keep in mind that miracles still can happen!