How does crowdfunding actually work? Startups share their experiences

University of Stuttgart graduate and successful founder Paul Eichinger ran a crowdfunding campaign for his former startup Personomic, which produced customized bicycle grips, and reports on his experiences.

1. Which steps did you take before launching your crowdfunding campaign?

Before launching the crowdfunding campaign, we took several important steps:

First, we conducted validation interviews to identify the right product with a strong product-market fit. We realized that bicycle grips had great potential, as many users complained of numbness in their hands.

We then had an intensive exchange with other successful startups, especially with the team from STUR, who shared valuable experience from their own crowdfunding campaign with us.

We also built a community to create a network of supporters. This was done through targeted Facebook advertising and participation in bike fairs, supplemented by a newsletter. This groundwork helped to create a certain level of interest and engagement among potential supporters.

2. Why did you decide on the platform you used and were there any specific criteria you took into account when making your choice?

The decision to use Kickstarter as a crowdfunding platform was strategic because Kickstarter has a large base of early adopters - a target group that likes to try out new technologies and innovative products. For us, this platform was ideal for quickly communicating and testing our product to a broad target group. Early adopters are often willing to take risks and are happy to support exciting projects at an early stage, which was crucial to the success of our campaign.

3. What were the most important factors for the success of your campaign, and how did you keep supporters involved or informed after the funding was completed?

The most important factors for success were careful product selection, the commitment of our community and intensive communication.

Our personal email communication and regular surveys strengthened the bond with the community, and we also kept our supporters regularly informed after the campaign. The high level of engagement we had built up through personal interaction and exclusive “early bird” offers not only helped us during the campaign, but also created trust among later buyers. Reaching the minimum funding target quickly also contributed to social proof and increased supporter confidence.

4. What were the biggest learnings from the crowdfunding campaign?

A key learning was the enormous importance of a well-established community. Experience has shown us that a committed and active group of supporters is a key success factor. In addition, personal contact was crucial - through direct emails and exclusive groups, we were able to create an emotional bond, which significantly increased the conversion rate.

Another learning was the importance of setting the funding target conservatively to create the impression of success and gain more trust.

Personomic's crowdfunding campaign can still be found here.

Further information on crowdfunding can be found on the Stadtwerke Stuttgart website or in general at Crowdfunding.de