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Why Your Video is Important for Your Equity Crowdfunding Campaign

video for equity crowdfundingYou’ve researched different regulation crowdfunding platforms, compiled the necessary financials, crafted your pitch, and determined your funding goal. Why then do you also need a campaign video? While it may seem like extra work, requiring extra time and money to complete, your video can be one of the most important aspects of your raise.

MWP Digital Media conducted a study of over 7,000 crowdfunding projects earlier this year to track trends involving campaign videos. The results? The projects that had a video were 85% more likely to achieve their funding goal. Even within individual project categories (e.g. film and video, games, product design, software), a campaign video made a difference in the project’s success or failure.

VentureBeat also studied the impact of video in 243 campaigns and found that funded campaigns are more likely to have a video of at least average quality (82%). In addition, those that use pitch videos are more likely to achieve a successful raise (75%) than those that use just educational videos or no video at all.

Creating a video tailored to your regulation crowdfunding campaign not only allows you to visually explain your company and your product, but it also allows you to showcase your brand story and your passion. It can generate more emotions, as video can tell an extensive story and appeal to a wider array of senses. Plus, by investing both the time and money needed to create a high-quality video, potential investors may be more attracted to your company and attracted to your willingness to put their investment funds where it matters in the future.

Breaking it down into more detail, effective crowdfunding videos tend to be around two minutes in length, with products introduced within the first 20 seconds. In addition, friendly and upbeat tones tend to perform better, although serious tones can perform well in certain situations (those still have a higher rate of failure than friendly/upbeat). It’s also best if company founders make a cameo or conduct a voiceover throughout the video, as it puts a face to the company and acts as an introduction to potential investors.

For more information on creating a standout regulation crowdfunding campaign video, check out our First Democracy VC partner Indiegogo’s tips on “Pitching Your Passion,” and subscribe to the MicroVentures blog for additional insight!

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