Crucial Crowdfunding Guide

Why Does Crowdfunding Work?

Crowdfunding works for many reasons. It appeals to people who want to feel like they are a part of something – that they contributed in the rise of a small business and can be part of a viral campaign phenomenon that raised millions and possibly become a part of Crowdfunding history. As an investor, Crowdfunding allows you to pick up some unique rewards in return for your investment, or to get involved at an early stage in what could be an exciting and possibly financially rewarding new business.

So, why does Crowdfunding work? There are many things about Crowdfunding that appeal to funders and to investors, including the following;

  • It allows you to appeal to people who want to be a part of something.
  • It allows people to make small monetary investments
  • It lets companies get some pre sales of a product to test the market and also helps them develop a network of followers
  • It offers exclusivity… campaign owners can offer exclusive rewards to their first backers
  • It is transparent – Having high quality and clear video, pitch and rewards allows backers to fully understand where their money is going and that your campaign can be trusted
  • Crowdfunding is direct marketing.


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CRUCIAL is co-funded by the EU through ERASMUS+. Project: CRUCIAL (Crowdfunding Capital) 2015-1-IE01-KA202-00862The European Commission support for the production of this publication does not constitute an endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein