Health Technology/ Femtech crowdfunding – If you build it they won’t necessarily come
There are different types of crowdfunding and platforms: equity-based providing bonds or shares (Seedrs), reward/product based (Kickstarter), social impact/donation-based (Fundsurfer), environmental (Ethex) and event raise models, e.g the registration to an event raises funds for a cause.
Industry stats state that only one in three crowdfunding campaigns succeed. Companies that get to 40% funded are 80% more likely to successfully reach their funding goal. So, your strategy should be fully focused on achieving this 40%. To maximise your raise, you have to follow a formula and a large part of this is preparation.
Preparation is key
A health technology or femtech crowdfunding campaign involves a lot of preparation, you certainly don’t join a crowdfunding platform and investors flood in. A well thought out business plan needs to be at its foundation together with a working prototype of your product or service. The next step is to ensure that your website, social channels are set up to capture interest together with an engaging video.
Warming the fans
Then the next step is to test out your proposition through organic and paid-for social promotion, allow 10% of target raise, driving sign-ups and follows on social media. This activity is to firstly warm the backers up to invest. This needs to happen three to six months before you press go on the campaign, with your communications designed to generate interest and create the fear of missing out for your fans (FOMO).
Pressing go and reporting
Whilst doing this activity you will be generating an email database (remember that you need that 30-40% of your target) and a social following of potential backers before you press go. Once you do this you must maintain interest and try to convert fans to backers, then on close, communicate the raise outcomes to fans and press.
C-Suite PR to Humanise the Brand
Leveraging the personalities of your health technology or femtech company leadership as extensions of the brand in a crowdfunding program is a great way to build the brand story and keep communicating through the different stages of funding. New customers, investors or potential employees like to know the leaders or founders behind the brand, it creates an understanding and trust in the business as a whole. This re-enforces the human aspect and inspirational stories behind the development and growth but also challenges around building a business. This allows for a more inclusive and diverse approach to humanising a brand.
To discuss how to OggaDoon can help make your business thrive and grow please reach out to nicola@oggadoon.co.uk.
