A Guide to Crowdfunding with BlossomZone

Crowdfund with BlossomZone to raise money for your idea

A GUIDE FOR BUSINESSES AND SOCIAL ENTERPRISES

Introducing BlossomZoneBlossomZone is a crowdfunding platform for businesses and research projects in East Anglia. The site offers reward and donation fund raising.

The BlossomZone platform is designed for the following kind of ventures:

• Start‐ups with a great idea looking to get off the ground.

• Growing companies needing capital to expand.

• Technology companies needing funds for prototypes.

Individuals and organisations can also use BlosszomZone to raise funds for:

• One‐off research projects with clear endpoint.

• Regional / local projects that will have a beneficial impact on business.

The Regional Opportunity

The regional focus is BlossomZone's strength. By connecting local supporters and businesses needing to raise finance, the platform can become a cornerstone of the regional business and start‐up community.

Help BlossomZone become the first port of call for East Anglian entrepreneurs to crowdfund finance.

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Blossom Zone

Investors & Supporters

Regional Business Bodies

Researchers

Growth companies

Cash

Economy

ROI

Employment

Connecting locally

What is crowdfunding?

Crowdfunding can be defined as:

raising money for a specific project from a diverse group of investors facilitated through a website platform.

Many small, consumer and technology businesses are attracted to crowdfunding as they find it difficult to obtain bank financing due to lack of assets against which to secure loans. Crowdfunding also gives young businesses an excellent chance to ‘test’ the market and build a following for their product.

Crowdfunding falls under the alternative finance umbrella which continues to grow strongly. According to a NESTA study the sector was worth £1.74bn in 2014 and forecasts that the entire sector will be worth £4.4bn in 2015.

In 2014 reward funding was worth £26 million up 206% on the previous year. As there is no significant change in high street bank lending criteria and low interest rates look likely to continue, crowdfunding will grow in importance as a funding method.

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BENFITS OF CROWDFUNDING

No upfront costOther than the time and resource you spend creating your campaign you will not pay a penny until you are successful.

Low feesRaising cash through crowdfunding is very cost effective compared to borrowing money.

The market speaksCrowdfunding is a great way to test the feasibility of you commercial appeal without committing funds in advance to development, testing or manufacture.

Build your audienceA crowdfunding campaign can build a buzz and validate your ideaduring your campaign. You are building your customer base.

Get sellingFor certain types of products a crowdfunding campaign is a great way to pre‐sell your wares. This is particularly true if you use the funds to expand manufacturing capacity or bring a prototype into production.

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Your campaign

Now you know that Crowdfunding is suitable for your idea you can start thinking about how to create a campaign. Read on to see how this works on BlossomZone.

There are three cornerstones to a campaign:

Target

You need to set a realistic target for the amount you are trying to raise. If your crowdfund project does not hit 100% of its target, you will receive nothing. Think carefully about how much it will cost to fulfil each reward. Remember to take account of campaign costs (i.e. any money spent on building the campaign) plus BlossomZone’s commission and fees.

Share your costs on the campaign page so supporters can see where their money will go.

Time

There are two timeframes to consider; the duration of the campaign (a minimum of 30 and a maximum of 90 days) and how long it will take to fulfil the rewards.

Rewards

You need to offer tempting rewards that appeal to a wide range of supporters. You can read about rewards later in this document.

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EVERY BLOSSOMZONE CAMPAIGN SHOULD INCLUDE

A clear and concise pitch that describes what your campaign is for.

Information about you and the team.

High quality video / pictures that clearly shows your product or service.

Attractive rewards for people who help fund your campaign.

Communication. Regular updates and additional information about your campaign and business will keep supporters excited.


Tell your story

Successful campaigns start with a clear, engaging story.

You need to tell potential supporters why you are raising funds through BlossomZone. Your campaign needs a personality and a compelling reasons for people to support you. Your rewards are only part of the reasons people will back you. Just as important is the belief in you and your product or service. Think carefully about how to communicate the following in your campaign.

A Unique Selling Point (USP)

Your audience of potential supporters want to know what differentiates your from the competition and what is unique about your offering.

A clear identity

Your brand identity needs to be clearly communicated. Who are you and what do you offer?

Ensure that your tone of voice (i.e. fun, business‐like, techie etc.) is consistent across the campaign. Emphasise values that define your business outlook and that your audience can associate with? All your messaging should reflect your brand value proposition.

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QUESTIONS A SUPPORTER MIGHT ASK

Who is behind this campaign?

What are their credentials?

Can I trust you?

How did you come up with the idea?

What is your USP or differentiator?

Why is this campaign important to you?

Why should I support this campaign?

If the crowdfund is successful, what next?

Where can I learn more?

Can I talk to you?

Just like a good story, a venture should have a beginning, middle and an end


Offering rewards

Reward‐based crowdfunding involves the campaign creator offering a reward to anyone who funds their project.

You can set up to 10 rewards at different amounts. Rewards should be varied, exclusive and relevant to your business. Why not use the business phrase SMART (Specific, Measurable, Attainable, Relevant and Timely) as a framework for your rewards.

Successful campaigns are those funded by lots of small rewards.

Rewards can include;

• A formal thanks for supporting.

• An experience such as an invitation to an event.

• Your actual product or service.

• A chance to be involved in something.

You need to ensure that will you be able to deliver on your promises so don’t offer rewards you cannot be sure of deliveringwithin a clear timeline. Remember to price in any delivery or postage costs.

Remember, it is your responsibility to fulfil rewards.

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YOUR REWARDS – THE MATHS

Say you want to raise £15,000 (inc. fees). You create 4 reward levels A, B, C & D. The total would look like this:

100 x Reward A @£20 = £2,00050 x Reward B @£100 = £5,00024 x Reward C @£250 = £6,000 5 x Reward D @£500 = £2,000


Donation‐based CampaignsIf you are running a donation campaign then you do not need to offer anything except thank yous. From a practical point of view the campaign is run in exactly the same manner as a reward campaign.

Equity CampaignsBlossomZone currently does not offer the opportunity to sell shares in a company (equity crowdfunding).

Marketing your campaign

Promote Yourself. Engage Many

Marketing your campaign is vital to building a wide range of supporters. To increase the chance of success the campaign must be marketedboth digitally and in person.

Taking advantage of the local strengths in using BlossomZone your marketing could include:• Presentations at local events about your business and ways to support.

• Flyers and posters in key places• Meeting potential supporters face‐to‐face to explain your business.


TOP TIPS FOR SUCCESS

1. Produce a clear and concise pitch that describes what your product/service is and how funds raised will be used.

2. Set a realistic target that supporters can understand.

3. Add high quality video and pictures that shows you and your product / service in the best possible light.

4. Create attractive rewards that will appeal to a range of people who will support your campaign.

5. Communicate with your supporters through BlossomZone and social media channels.

6. Market your campaign through all means possible.

7. Plan and communicate what happens after the campaign and how rewards will be fulfilled

Digital marketing includes:• Emailing your existing customer and prospects database.• Posting regular updates on social media. Using video and

pictures to drive traffic.• Press releases to local and trade media.

Manage your supporters

Give your supporters some love

To increase the success of your campaign it is vital that you keep your supporters and potential supporters fully informed.

Supporters want to know that you are working hard to make your business and campaign a success.

To build a buzz BlossomZone suggests that you:

• Send email updates on a regular basis.

• Create content for your website detailing progress you are making with crowdfunding. Share this content on your social media channels.

• Host an event to showcase your product/service.

• Keep the updates section on your campaign page up‐to‐date. Answer any questions that potential supporters ask.


How we can help you

You want success. We want success

BlossomZone wants your campaign to be a success. We will do our best to guide you through the campaign process and offer support in the following way:

• Help you develop your ideas for the campaign pitch.

• Provide neutral feedback on your campaign pitch to make it more attractive to supporters.

• Point you in the direction of professional advisors that you may need to help compile the campaign. (i.e. accountants, lawyers, designers, writers etc.)

• Review your campaign before launch to ensure it has the best possible chance of success.

• Keep you updated on campaign progress and offer ongoing support.



The platform offer

BlossomZone facilitates all‐or‐nothing reward and donation campaigns. This means you must achieve 100+% funding to be successful. In some cases we may consider a minimum of 85% funding depending on project size and type.

The minimum funding target is £250 and the maximum £50,000.

Businesses must be headquartered or have a significant presence in East Anglia but the supporters’ location is unrestricted.

There are no restrictions on the type of business that can run a campaign (provided it is legal!) except those promoting gambling, sexual activities and lending / credit services.

BlossomZone reserves the right to refuse campaigns. If you are unsure whether your business is suitable for crowdfunding speak to us first.

Research projects must be endorsed by a reputable organisation and have a clear objective and outcome.

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FEESIt is free to list a campaign.

BlossomZone’s commission is 5 percent of the total funding raised by a successful campaign.

Plus payment gateway fees (PayPal approx. 2%).

Over‐fundingYour campaign can be overfunded. This means that more than 100% of the funds are pledged before the campaign close.

AUTHORISING PAYMENTSSupporters make a pledge to buy a reward which pre‐authorises their credit card or Paypal account.

When the campaign hits its target, the money is taken from the supporters’ account and sent to the campaign owner.

If a campaign fails to hit the target the pre‐authorisation is cancelled and no money is taken.

The campaign owner will receive the funds within five working days of the campaign ending.

Company & operations

BlossomZone is based at the Enterprise Centre eco‐building at University of East Anglia. This location gives us an excellent insight into the challenges and opportunities of business in East Anglia.

We use secure payment gateways with PayPal and Stripe. We never see or store credit card or bank account details of supporters.

We offer online / offline customer support during UK business hours. We are happy to organise face‐to‐face meetings.

BlossomZone a privately owned company headquartered in Norfolk.



More information

Speak

Edwin Bailey

Founder

Blossom Zone

[email protected]

01603 554 029

www.blossomzone.co.uk

Visit

The Enterprise Centre, University of East Anglia, Norwich, NR4 7TJ

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If you need more information or want to speak with us about your idea please get in touch. We are based at the UEA Enterprise Centre
