Planning a Crowdfunding Campaign? Researchers Found the Ideal Amount to Ask For

A new study suggests there may be a “sweet spot” for how much start-ups should aim to raise through crowdfunding. After analyzing more than a thousand successful campaigns, researchers noticed a pattern: investors respond strongly to certain targets and lose interest once the number climbs too high.

What Makes a Crowdfunding Campaign Attractive?

The research, carried out by academics at the University of East Anglia in collaboration with the University of Manchester, found that campaigns aiming for around £90,000 tend to attract the most backers. Investors appear comfortable supporting projects up to that level, but when founders ask for more, enthusiasm drops.

Drawing on data from 1,189 equity crowdfunding campaigns, the research team compared funding goals, final amounts, team sizes, and the language used in pitch summaries and identified several other factors linked to stronger results.

Start-ups with larger founding teams, roughly 19 people, performed better, and the wording of the pitch mattered. Campaigns using terms like “health”, “healthy”, or “organic” tended to raise more, while those describing themselves with words like “entertainment” or “information” were less successful.

Equity played a key role as well. Offering investors a meaningful share increased the chances of reaching the goal, while very small equity offers often discouraged backers. As co-author Professor Peter Moffatt explains, offering too little can suggest that outside investors aren’t seen as important, or that the company’s valuation may be unrealistic.

In short, the researchers suggest choosing a realistic target, offering a convincing equity share, building a solid team, and paying close attention to the words you use.

Last, but Not Least: Don’t Forget to Secure Your Campaign

When your crowdfunding campaign starts to take off, it’s easy to stay focused on prototypes, updates, and keeping the momentum going. But that’s also when scammers tend to strike. They send fake emails to your backers, create copycat campaign pages, try to break into your accounts, or go after your design files and customer data. Even one incident can make supporters nervous.

Secure your accounts and files early with Bitdefender Ultimate Small Business Security. It blocks phishing attempts, protects your logins, and shields your work quietly in the background, so you can stay focused on your campaign, not fighting off threats.

Start your 30-day trial.