Getting started with equity crowdfunding: Vox Pop
Crowdfunding can help start businesses in one of two ways: they can help finalise a product ready to sell on the market, or they can help fund a business. In this case study we look at Vox Pop, a company that was successfully funded through equity crowdfunding, a form of crowdfunding where investors get a share of the business.
Driving success with equity crowdfunding
Vox Pop is a project that changes how journalists get responses to questions from targeted communities at specified locations all over the world. The company prior to launching its equity crowdfunding campaign was supported through Start-up Chile, a fund that sought to get early stage entrepreneurs to launch their platform in Chile. After the incubation project in Chile, the crowdfunding campaign was launched on the Italian platform WeAreStarting, that specialised in equity-crowdfunding. Equity based crowdfunding was chosen as it was the most appropriate way to give a return to investors. Crowdfunding was preferred over traditional means of financing because the project was in a early-stage of development and would encounter difficulties finding investors keen on financing it.
The crowdfunding campaign successfully raised 60 000 euros from 39 investors during the campaign. The campaign also received 5% from an Italian Startup incubator. The crowdfunding campaign achieved its success through the established network from the crowdfunding platforms founders. The crowdfunding platform helped establish meetings with investors and provided audio-visual and media support for the project.
Scaling momentum with crowdfunding
The campaign helped generate more momentum to develop a Vox Pop prototype that pushed the project into its current pre-launch phase.
The crowdfunding campaign also helped Vox Pop gain attention and it became a winner of the “Knight-VICE Innovators” contest. This allowed Vox Pop creators to be known as a, “global, online tool for crowd-gathering sources through social networks to help journalists interview and reach the right people in the right places,” the project also gave Voc Pop creators access to users. The Vox Pop creators were able to work in VICE’s production facilities in Brooklyn and gain valuable feedback from journalists and award-winning producers to help develop their product.
Vox Pop encountered a single challenge of cultural awareness among investors. The capacity of creators to build a solid network of people and develop a strategic campaign attracting investors helped drive this campaign to achieve the success and attention it needed to be ready to launch.
Interested in reading more on this campaign? Read the whole case study here: http://bit.ly/VoxPopCF
In the meantime, if you are looking for a crowdfunding platform to use to raise money for your project, take a look at our unique list of all EU platforms: http://crowdfunding4innovation.eu/platforms
Stay in touch and watch this space for more interesting info to come.