5 tips for crowdfunding, as Bizelo aims to raise $750k - Technical.ly Baltimore

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Oct. 4, 2012 9:30 am

5 tips for crowdfunding, as Bizelo aims to raise $750k

Looking to raise some money for your startup? There are venture capital firms and angel investors, of course, and some startup companies go the boostrapping route, paying for costs of their own pockets. But crowdfunding, as TechCocktail reports, “offers a viable alternative for entrepreneurs to raise funds by appealing to a wider audience of potential […]

Looking to raise some money for your startup? There are venture capital firms and angel investors, of course, and some startup companies go the boostrapping route, paying for costs of their own pockets.

But crowdfunding, as TechCocktail reports, “offers a viable alternative for entrepreneurs to raise funds by appealing to a wider audience of potential customers.” That might be why at least one local app development firm is trying the crowdfunding path.

There are five guidelines entrepreneurs should follow if they choose to crowdfund an investment round, according to TechCocktail.

  1. Set realistic funding goals.
  2. Keep the explanation of your startup simple.
  3. Plan early the list of people you’ll contact directly.
  4. Pitch key bloggers before the launch of any crowdfunding effort.
  5. Pay attention to offline marketing tactics.

Technically Baltimore reported in August that Bizelo, which creates apps for small businesses and was founded by TechBreakfast organizer Ron Schmelzer, is trying to raise a $750,000 seed round through crowdfunding efforts.

In a YouTube video announcing the seed funding launch, Schmelzer says Bizelo hopes “to forever change the way that enterprise apps are built by profoundly changing the economies of app development.” Schmelzer also says that those who “chip in” to Bizelo’s seed funding round can receive “free months of access” to specific apps the company is developing. The goal is to develop 34 apps in 12 months.

Watch the Bizelo crowdfunding video:

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Andrew Zaleski

Andrew Zaleski is a freelance journalist outside Washington, D.C. He's written for Wired, Backchannel, Popular Science, Fortune, the Washington Post Magazine, the Atlantic and elsewhere.

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