The Investor - Moneyweb's monthly investment magazine Issue 6 | Page 55

crowdfunding ideal for creative projects. It still needs work when it comes to funding a business. Luckily, Van Zyl says that the models are evolving. • “As always, one needs to do your research on who to partner with and what the main goals are. It could just be something like market testing or raising awareness. Even when a project doesn’t reach its goal, it can still prove successful in other ways. “It addresses a definite need, but there is still a lack of 'mentorship capital'. For a high-growth venture to succeed, one needs to combine knowledge, networks and funding. In most cases, projects only contribute funding,” he says. VAN ZYL'S TIPS FOR A SUCCESSFUL CAMPAIGN: • • • • • Know why you are doing it and what you aim to achieve. Plan your campaign in advance. Gather early support from your immediate network. Use the right crowdfunding partner for your project. Create profile-raising activities. Adapt and iterate during the campaign. WHEN A PROJECT FAILS... One such campaign is Tourism Radio, South Africa’s crowdfunded initiative, which kicked off in September 2013 and hoped to deliver interactive Google Glass travel guides by April 2014, six months after the end of the campaign. It did not raise enough funds to make the project a reality, but Jonathan Meyer, Tourism Radio’s content manager, says that the campaign still proved successful in terms of the interest and publicity it generated. “We were almost immediately contacted by interested parties from across the world, some of which proved fruitful.” Why did it fail? Their project, he says, relied too much on Google Glass becoming a household item, which led to backers choosing a “wait-and-see approach”. Meyer adds that crowdfunding needs to be flexible – those who adapt to their backers are more likely to succeed. “Personally I believe it is about getting backers to not only invest in your campaign financially, but emotionally.” It is a case of adapt or sink, especially when you are being funded by the public: “Funders who also adapt their projects in response to their backers are generally the ones that are successful.” THE FUTURE OF UBUNTU FUNDING While crowdfunding in South Africa is still new, it is already able to offer a platform for those who dare to dream far beyond their current means. Sometimes getting an idea off the ground takes a village, other times it takes a crowd. ■ ISSUE 6 – SEPTEMBER 2015 55