Roo’Bar and crowdfunding : A Critical Evaluation of Ways Roo’Bar Can Acquire Investments by the Means of Crowdfunding.
Before we get into our whole little story about Roo’Bar you need to know what crowdfunding is. Otherwise you might get lost. If you already know what it is then I’m sorry read along.
While Crowdfunding does not include riding an inflatable raft at a concert I am truly sorry, it can be just as cool and exciting. In a different way that is. Crowdfunding is defined as: the practice of funding a project or venture by raising many small amounts of money from a large number of people, through the Internet. In other words, instead of going to banks or seeking out large investors, which can be very risky, time consuming, and difficult: take it to the public! Rather than asking $500,000 from one person, you can ask $1 from 500,000 people that all want to support your idea. Crowdsourcing is making it easier than ever to raise capital and is perfect for start-up companies, expansion, and even charity organizations.
Still a bit confused? Look at this picture below!
But what is ROO’BAR?
- Products: Roo’bars have а simple recipe consisting exclusively of raw, organic, vegan and gluten-free ingredients. Roo’bars are now sold in 4 continents, 46 countries and the market is still growing.
- Roo’bar’s target market: the young generation who have a dynamic lifestyle and are interested in healthy snacks (although the fact that Roo’bar is good for everyone, even people with various dietary needs).
- Roo’bar Online communication channels: Facebook, Twitter, Pinterest, Instagram, which are all very popular social networks among young people.
The number of Roo’bar’s followers on popular social networks
So by now you know crowdfunding is the strategy mainly based on the Internet. Also the target market of Roo’bar is the ones easily influenced and/or attracted by online events.
However, it is shown from the figures that Roo’bar’s brand awareness among the youth on popular social networks is not that big. This is a disadvantage for Roo’bar when its crowdfunding campaign starts.
How we´ll evaluate the way Roo´Baar can acquire investments by the means of Crowdfunding:
- We’re looking into successful Crowdfunding platforms such as Kickstarter, Indiegogo, RocketHub, and Onevest, and look at the logistics of their operations;
- We will then look at successful projects that have been launched via Crowdfunding and try and find a pattern;
- We will analyze the core competencies of Roo’Bar and their target market to figure out what we can offer potential investors.
What does Roo’Bar need to know?
- Choose the platform carefully
According to Forbes, if you want to launch a crowdfunding campaign, the first place to start is to pick the platform that you’ll raise funding on. To help you, here’s a list on Forbes of The Top 10 Crowdfunding Sites for Fundraising (http://www.forbes.com/sites/chancebarnett/2013/05/08/top-10-crowdfunding-sites-for-fundraising/#30776a891cfb).
- Select a Crowdfunding model
Differing levels of perceived contributors risk and/or the accessibility of the model can have a significant impact on a crowdfunding model’s chance of success.
According to Massolution, lending-based models tend to be very successful, with a 91% success rate, driven mainly by the popularity of micro-loans. This has the highest probability of success among all types of crowdfunding campaigns.
Besides, success rates of donation-based models (including rewards-based donation models), equity-based models and presale models range from 40% to 50%.
- Momentum is the key
One of the key success factors for a crowdfunding campaign is achieving and maintaining the right amount of momentum behind the campaign, especially in the early post-launch days. Indeed, according tostatistics reported by Kickstarter, once a campaign raises over 20% of the initial funding goal, the project has an 80% chance of successfully reaching its total funding goal.
- Take the advantage of social media
The more widely you can distribute word of your project, the more support you will receive. And one of the best ways to get word out about your project is through social media. Therefore, Roo’bar needs to regularly update information about their campaign and share their objectives on their social networks.
- “We’re just missing 100 euros to reach 50% of our objective”;
- “The most subscribed amounts are basically 10-25-50-100.
5. Pick the right duration
The optimal campaign length (according to Indiegogo) is around 45 days.