Is Celebrity Crowdfunding Truly Stopping Small Companies from Raising Awareness (and Cash) on Major Platforms?

Who wouldn’t want to live the life of the rich and famous, at least for one day? A-list celebrities have everything their hearts desire: from luxurious cars, drop-dead gorgeous cloths and accessories, to an army of chefs, maids, stylists and personal trainers hired to ensure their highest level of comfort 24/7. Moreover, well-liked public figures have a colossal impact on a vast audience.

Therefore, it shouldn’t surprise us that some of the most successful crowdfunding campaigns are developed and launched by popular celebrities — who know how to interact with their public, how to stimulate the generosity and participation of their fans and how to cultivate their engagement in the long term.

In this particular context, one question remains unanswered: are these influential celebrities outshining the efforts of small-scale players who rely on crowdfunding to turn their most ambitious dream into reality?

First-Class Celebrities: Friends or Foes?

Young, inexperienced entrepreneurs seeking financial support on crowdfunding platforms are usually intimidated by the presence of celebrities who are driven by similar goals. Already consecrated artists launch movies, music albums, fashion collections and take pride in their new success, achieved due to a clever mix of promotion strategies. That doesn’t seem fair, does it?

After all, sought-after filmmakers, actors, singers, designers and models already have their huge fan database and all the right connections that they require, in order to raise capital the easy way. Therefore, what are they doing on crowdfunding platforms, apart from scaring away the small-time players?

Can Celebrities Raise Money and Awareness and Help Small Players at the Same Time?

Eric Corl, the president of Fundable, a highly-appreciated crowdfunding environment especially designed to support start-ups and a wide range of small businesses, begs to differ. Corl thinks that the initiatives developed by celebrities in an attempt to collect money from supporters shouldn’t be considered a threat by tiny companies and entrepreneurs with no resources and zero connections. Individuals erroneously think that there is a limited amount of cash coming from backers. Moreover, they believe that celebrities who start to run a campaign for a product or service similar to theirs (and in the same timeframe) inevitably compromise their crowdfunding efforts.

In reality, creative ideas launched by celebrities on crowdfunding platforms, like the Veronica Mars project for instance, collect millions of dollars, raise awareness and actually help small businesses, by attracting new investors. Kickstarter reports that the Zaff Braff and the insanely successful Veronica Mars campaigns have involved thousands of new contributors. For 63% of the supporters who joined these two causes, this was the first contact with the crowdfunding industry.

Thus, the general opinion shared by crowdfunding experts is that celebrities who launch their own campaigns don’t affect the end result of small companies pursuing similar goals.

If you don’t know how to outshine your competitors or how to design and implement a successful, crowdfunding campaign on time and on a very strict budget, count on L&C Media Buzz: your dependable crowdfunding specialist, offering you a mix of promotion strategies and the very best expert guidance around the clock.