The Covid-19 pandemic has affected so many aspects of human life today, some negatively and others positively. Crowdfunding is not an exception. According to Beauhurst, a research organization, the most affected business sectors by the covid-19 are those that rely on foot traffic, including entertainment, leisure, and hospitality industries. Moreover, companies at the seed stage of their cycle are less likely to feel any impact from the pandemic, while those at a later stage are more likely to be affected.
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Business people who have been thinking of crowdfunding campaigns may be confused about how this global pandemic will affect them. The good news is that crowdfunding is still as possible as it was before. You simply have to understand the pandemic’s effects, what different platforms, such as crowdfunding sites for nonprofits, are doing to help, and how you can launch and become successful in your crowdfunding campaign.
The Effects that can be seen so Far
It took some time before the world came to understand the effects that this pandemic had on crowdfunding and its extent. You should know that the most affected part of many businesses was the supply chain. When the pandemic came, manufacturing in China became paralyzed. With that, brands that had started crowdfunding could not get access to essential supplies.
Additionally, such brands could not have their product manufactured or send those products to their financial sponsors. Consequently, this led to the brands announcing delays in launching and transporting their products. You must have noticed that the economic impact that the pandemic has had on people is immense and on the opposing side. So many have lost their jobs, and those that have a little in their bank are doing all they can to spend as little as possible.
This effect has been felt even in the crowdfunding sector. However, it is not like there are no more backers - it is just that the contributions that these sponsors used to make have become less. Moreover, you must be equipped with tips on convincing people to contribute to your crowdfunding campaign during these uncertain times.
The Efforts Put by Crowdfunding Platforms to Help
The virus has been around for just about one year. However, companies that offer crowdfunding and other services are taking steps to help campaign owners have an easier time. Some crowdfunding platforms have entirely waived the fee charged to sign up on their sites. Others have taken a different route to help. They are offering an extended period of seven days to all the active campaigns.
Wefunder, a crowdfunding platform, has opened allowing small businesses to acquire loans at reduced interest rates. The amounts that such companies can get through this platform range from $20,000 to $1 million. This is a significant milestone as far as supporting startups is concerned. You will also come across some shipping companies that are doing all they can to ensure that the campaign owners receive their products conveniently.
However, the situation is still fresh, and you are recommended to check news updates for any developments constantly. Creating an account on most of these platforms will not cost you anything. Donorbox is particularly easy to set up and get running instantly.
How can you make your Crowdfunding Campaign a Success Against a Pandemic?
While you might feel confused about the whole issue, you should know that it is possible to launch a successful crowdfunding campaign even with the covid-19 pandemic. All you have to do is stay alert on whether now is the right time for you for such an activity. The following are some of the things to put into consideration;
Transportation Costs – You already have a set budget, but you must factor in transportation costs, especially if you will be using air transport.
Manufacturing Delays – If you are getting your products from outside countries, especially China, you might face some challenges. However, you can liaise with your manufacturers and suppliers to see how best you can work together.
Communication – Constant communication with your suppliers, manufacturers, backers, and prospective investors is the only way to a successful campaign, whether you have already launched or not.
Social Media – It is advisable to leverage the power of social media, such as Facebook, which gives you an ideal platform to expose yourself to the public.
Supply Chain – The transport sector is among the worst hit. Therefore, you might get some trouble moving your products from point A to B.
The world has transformed significantly, and almost everyone in the world has felt the pandemic’s impact. Crowdfunding has been among the best ways to raise funds for a business, but today things are not the same. The information you have gathered here is detailed to give you a clear glimpse of the effects of Covid-19 on crowdfunding campaigns.
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