How to build a successful crowdfunding platform?
KissKissBankBank, the French crowdfunding platform, is one of the world’s leading platforms dedicated to creativity and innovation. It was one the first CF platforms created in France. Namely, the crisis of 2008 made finance dramatically less accessible, especially for creative industries. As a result KissKissBankBank was founded in 2010.
This Reward-based platform, active since March 2010, has currently 1.000.000 investors registered, and it has raised a total of € 57,909.034 in six years. A success rate of projects launched via the platform is quite impressive (67%). KissKissBankBank is operating cross-border attracting investors from 38 different countries. Furthermore, the platform currently employs more than 40 people.
KissKissBankBank believes in the value of CF and in its unique ability to connect fundraisers with a crowd really interested in specific ideas. It relies on reward-based CF model with an All-or-Nothing approach.
So what are the success factors?
- The network plays a fundamental role in the success of CF campaigns. KissKissBankBank with its international network offers fundraisers numerous connections.
- KissKissBankBank has a team of creative and innovative entrepreneurs who are experts in the CF market landscape. The platform underlines this as a key element of its success.Moreover, the platform provides its fundraisers with mentorship programs. This is how fundraisers’ awareness of risks is raised and how they receive support during the process.
- Since a major share of fundraisers are individuals, not institutions, the relationship platform-fundraiser is a very important element. Namely, KissKissBankBank helps crowdfunders decide about campaigns’ duration, amount targeted, and how to structure it.
- KissKissBankBank recognises that investors are not very keen in investing in CF projects. To counteract on this, they offer a F&Q section where risks and statistics are explained.
- Finally, the platform enhances the sense of 'differentiation and being special'. For example, its investors are called Kissbankers.
All of these elements contributed to the growth of the platform that now offers concrete opportunities to creative and innovative projects. KissKissBankBank is showcasing the power of CF as a financial tool for innovation.
According to KissKissBankBank, people involved in the project and their dedication to the campaign are key success factors for the campaign.
On the other hand, the platform acknowledges the existence of bottlenecks, slowing down CF campaigns, such as trust in the platform and people behind the project, and the feasibility of campaign goals. Setting objectives that are clearly unrealistic discourages investors.
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Now we have questions for you!
To what extent do you think that the platform can make the difference for the outcome of a campaign? How much a platform choice matters for fundraisers?
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