How Your Startup Can Raise Millions Using Crowdfunding Videos
Equity crowdfunding is an increasingly powerful and strategic way to finance a new or existing business venture. The size of the global crowdfunding market is growing: almost $4.5 billion have been raised, and the market size is expected to reach $25.8 billion by 2027, according to Statista.
One way businesses are raising money on crowdfunding platforms is by creating pitch videos. Adrian Baschuk, the executive producer of media agency ARORA Project, is crafting brand narratives with the help of Storyhunter’s global network of top creators. Adrian, who has partnered with crowdfunding sites such as WeFunder, Kickstarter, and Start Engine has made 25 videos since the start of 2020, and projects to make 100 more in the next year.
We spoke to Adrian and Jonny Price, VP of fundraising at WeFunder, to learn more about why video is a necessary tool for any startup trying to raise funds. Here are key takeaways:
- It is more efficient than time-consuming in-person meetings: “A hundred meetings might have taken 150 hours. And that time is almost eliminated if those pitches happen on video,” Jonny said. “Now instead of getting in front of 100 investors, the video-based approach allows founders to get in front of 1 million investors.”
- It compresses a lot of information, forcing companies to distill and simply ideas
- It shows the character and passion of the founder and team members: “You can download a lot of information about a founder from their written resume, LinkedIn page, and track record,” Jonny told us.” But a video allows the founder’s character and personality to shine through in a much more compelling way than a web page.”
- It’s an excellent opportunity to connect with potential investors through storytelling: “For some founders, the ability to tell a story in video form, and produce a beautiful video, are important indicators of their ability to market their product and sell their company,” Jonny said.
- It works!
We rounded up three exemplary pitch videos, powered by Storyhunter, that have led to millions of dollars in crowdfunding revenue.
Capital raise: $1 million from 1,258 investors
Cortex is an enterprise SAAS platform that uses artificial intelligence to optimize visual content, for example, photos and videos. Cortex’s AI analyzes your brand, competitors, industry, influencers, and media outlets and then tells you what is working and why.
Adrian hired a Storyhunter freelancer in Boston to film an interview with the founder and marketing leads from a brand that uses Cortex.
They then interspersed snippets from the customer testimonial with a boardroom recreation of the brand’s marketing team making creative decisions for their upcoming customer photoshoot (based on data from Cortex.) Cortex’s crowdfunding video introduces potential investors to the company’s team and explains why Cortex is a good investment.
Adrian told us that this highly-involved shoot in Boston was only possible because of Storyhunter. “The key component is finding talent around the world who are producer-shooter types, who aren’t just DP’s or videographers, but who can work with the production company and work with the client in-person in telling the best story visually with our co-direction.”
Capital raise: $600,000 from 259 investors
Sunken Stone is a performance-based Amazon marketing agency that manages the supply chain, marketing and customer service for a consumer-product company on Amazon.
In the video, aptly filmed in front of the Amazon Spheres in downtown Seattle, Sunken Stone’s founder introduces viewers to his company and team, explains the technology they use, and shares how they help brands increase their sales on Amazon. The video also includes short soundbites from people who have already invested and encourage others to also “take the plunge.”
Adrian told us the crowdfunding video was filmed during the height of COVID. “So, it was a single camera shoot, but we hired a Storyhunter producer/shooter who knew how to set up the shot perfectly to provide that impact and depth of field, literally showing the Amazon spheres in the background, which is an iconic setting not just in Seattle, but in the startup world.”
Capital raise: $460,000 from 683 investors
Fancy.com is where you can “discover, share and purchase the most interesting, unique lifestyle products in the world,” according to the company’s pitch video. They sell products in categories such as home decor, art, and gadgets.
Adrian hired a Storyhunter freelancer in San Diego for this shoot. The video not only features the CEO, but also American rapper T-Pain, who is an official product tester for the company. T-Pain is shown in his office surrounded by unique products like a solar-powered snap band and DUDE Shower wipes.
“We used cool motion tracking shots to show off the office environment and some of the cool tech gadgets that are available on the site,” Adrian said. “It was a wildly successful campaign that hit the seven figure mark.”
By Shivan Sarna, Head of Stories