The Danish Startup Ecosystem Guide - Magasin - Side 46
CROWDFUNDING
An informed choice
However, crowdfunding rarely succeeds
by just throwing a campaign onto some
platform expecting investors to come.
One of the main challenges is to stand
out among the large number of projects
and startups vying for funding on these
platforms. It can be a time-consuming
process that requires significant preparation and planning. Startups will need
to create a compelling pitch, develop
a marketing strategy, and set realistic
funding goals in order to be successful.
Additionally, various ways of crowdfunding come with their own legal and
regulatory challenges which might add
to the complexity.
Make or break
Crowdfunding can essentially make or
break startups - especially early stage
startups, who might be off to an
incredible start if they succeed in selling
their first million worth of products
before even properly launching their
company.
3 Danish startups who
crowdfunded successfully:
Organic Basics
Was one of the Danish pioneers when it
raised $20.000 to produce its first batch
of sustainable clothing back in 2014. The
startups used the reward-based method
where backers got a reward - e.g. a pair of
socks - in return for their early investment.
The brand has used Kickstarter multiple
times since.
LabFresh
Has used reward-based crowdfunding on
Kickstarter as a strategic marketing and
fundraising tool since the brand‘s inception.
Through four successful campaigns, each
with new clothing products, they have
raised €830.000 and amassed 10.000
backers.
LuggageHero
Is one of few Danish startups to
successfully raise money through equity
crowdfunding. Two times the startups
raised rounds on the platform Seeds with
an aim to expand into new markets. Totalt
investment: €2.111.765 from 1.617 backers.
46
The Guide
