Questions

I am opening a Drive In theater in my hometown and require $400,000 in total startup capital. I will be seeking debt and equity investors as well as a crowdfunding campaign to secure initial funding as well as generate community interest.

Crowdfunding is not for everyone; if done correctly you can use it to sell anything. The key benefits of doing a Kickstarter project is being able to use the campaign page as a marketing asset to show future investors, potential clients, and distributors/wholesalers (if it's a physical product). The vast majority of top Kickstarter projects and most of the successful projects are all physical products (tech, fashion, boardgames, etc) because of the the inherent nature of Kickstarter being more like an ecommerce store, where visitors browse for new toys and gadgets in exchange for their 'pledge' money. In the case of community projects like yours, it's more challenging to raise a higher amount of funds because your project is not as easy to scale from a marketing perspective; the 'ecommerce' aspect is more challenging because it'll be difficult to offer value to people online who won't be able to visit your Drive in Theatre in person. You can still use Kickstarter to raise funds (I predict most of your backers will be local), and then use the campaign page as a marketing asset to show investors.


Answered 4 years ago

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