How to Raise Money for your Startup Idea

Raising money for your creative idea can be really difficult, but it's not impossible.
by Updated December 4, 2012

There are several methods you can use in order to meet prospective investors and to present your idea to them. Nowadays online funding platforms offer their services for creative people. One of them is

If you have an innovative project, you can find backers who like your idea and support it. Your project can be anything from art, design, films, games, and music to books and technology.

How can you get financial support for your project?

1. Make a presentation on your idea. Define the goal of the project, like making a film, a book, or a work of art. Set completion deadline and make it clear what will be produced. Prepare your project page, explain your goals with images or videos. Tell the story behind your project. Supply as much information as possible, provide details about your background and experience. It is advisable to share your prior work via links. Explain potential backers why you need money and what you will spend it on. If you plan to launch some kind of a manufactured good, write a manufacturing plan as well and prepare a functional prototype.

You can get inspiration from other projects on that are similar to yours. It is also a good idea to discuss your plans with your friends before you publish them. Be prepared that you have to work a lot in this phase and do not be surprised if you cannot complete it within a few days.

2. Make a budget, set your funding goal and deadline. You may have to carry out some research to find out how much your project will cost. You have to be aware that applies a 5% fee to the funds collected. Payment processing fees will be about 3-5%.

3. Find out what rewards you can offer in exchange for the support. The reward has to be something directly produced by the project or by you. It should not be a financial return in any case. The reward of your project should be creative, tangible, and fairly priced. It needs to inspire backers. Example for rewards include a DVD, a picture, a ticket for the show or a book. These should be priced according to what people would be willing to pay for it in a shop. If the result of the project is not an item that can be sent to backers, you may thank them the contribution in the credits or involve them in the fulfillment of the project (offer participation). It is good to know that successful projects usually have a reward worth at least $20.

4. When your proposition is ready, share your project on the website. Choose a project title that describes your creative project and is simple and memorable. Pick a project image that reflects your goals. You have to write a short description telling people what your project is about. Kickstarter will ask you to submit your bio as well. Grab the opportunity to convince people to support you project.

5. Potential backers may ask questions regarding your project. Make sure you answer them.

6. If people like your project, they support it with some money. They do not have to finance the whole project, only a part of it. If the amount of money offered reaches the funding needs of the project, backers' credit cards are charged at the time of expiry. Nothing is charged if the amount does not reach the funding goal. This is because completion of the project is not guaranteed in this case.

On the basis of's statistics, 44% of projects have reached their funding goals so far.

7. Once you received the money, you can start working on your project. Should problems come up, post a project update explaining the situation. Backers certainly expect that you complete the project. If you still can't fulfill it, you have to find a resolution, e.g. offer refunds.

8. When your project is completed, make sure your backers get the rewards you promised. You are obliged to fulfill all rewards or refund the backers.

Good luck with your project!



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