We asked Crowdsurfer Pro for the answer.
A school of thought states that everything – from a simple widget to a brave, world-changing idea – can be financed via the crowd. In crowd finance, there are takers for every opportunity, no matter how outlandish.
But evidence we’ve uncovered argues the contrary. It shows that the crowd is actually discerning and selective.
Using Crowdsurfer Pro, we analysed hundreds of thousands of campaigns to understand which sectors perform strongly in equity and rewards crowd finance.
What we found was eminently sensible: the crowd is no different from the high street. Before spending money on products, buyers like to "touch, feel, understand”.
Little surprise then that successful campaigns tend to be in sectors with a clear end product. Design, home improvement and lifestyle products do well.
Like the high street, the crowd is health conscious and motivated by the opportunity to make money.
Hence, the most successful campaign sectors we discovered include:
Campaign sectors that underperform rely heavily on the opposite: they have an unclear business case, with little to show in terms of existing product. And they build their campaigns on lofty ideals rather than concrete business development.
Unsuccessful campaign sectors include:
So if you want to launch a successful crowd finance campaign, make sure you know your end goal and allow your investors to "touch, feel, understand” your product.
Reassuringly, despite what some think, the crowd remains sensible, driven by the same sentiment as shoppers on the high street.
Perhaps one day it will be swept away with a grand idea to change the world. Perhaps the time of idealist lies up ahead in the future. But, for the moment, the crowd remains fiercely pragmatic and very picky.
Next week, using the same method to harness the power of Crowdsurfer Pro we take a look at what’s trending in debt crowd finance.
* Our analysis looked at over 60% of all the campaigns we’re tracking at Crowdsurfer, with the majority hosted on Indiegogo and Kickstarter.
** Successful campaigns raised at least 90% or their funding target, with targets set at a minimum of £10,000. Unsuccessful campaigns failed and raised £0.