Crowdfunding need an Explainer Video

Why does Crowdfunding need an Explainer Video?

What is Crowdfunding?

Crowdfunding is quite similar to fundraising when it comes to collecting funds. But there are key differences as to the purpose or goal. Crowdfunding aims to collect fund from a large group of individuals which is then used for startups or business bubbles.

So, to put it simply, it is for raising capital. While fundraising, mainly used for charities, are to give that collected money to an organization or pass it on to a group of people who needs it.

But we are here to answer why does crowdfunding need an explainer video?

You can visit Wikipedia to get a more formal and in-depth definition.

A good thing to take note of is that crowdfunding is mostly based online. Through a website, marketers and business starters advertise and get potential investors online.

Why did I tell this? We will, of course, find out in just a bit.

Types of Crowdfunding for reference

With these types of Crowdfunding, you will also understand a bit of how Crowdfunding raises capital. And how it manages that resource. Take note that there are a lot of types crowdfunding, but these two will be best because we are going to answer the question, does crowdfunding need an explainer video?

Crowdfunding from Donations

This type of crowdfunding collects capital from different people and business investors. Without any type of return, this might sound off to some of you. But his actually happens a lot.

A lot of philanthropist wants to donate money just to feel good about themselves or just to provide help to those who are in need. Of course, this will be up to the crowdfunding marketer on how to attract the right people. Also, this can be used for charitable purposes as well.

Crowdfunding with Rewards

Exactly the opposite of how I defined donation-based crowdfunding. This means that rewards-based crowdfunding has a goal to pay back those who gave money. With different or unique ways but often called as “rewards”.

This type of crowdfunding can be used to start game productions, build monuments or city projects that will give a reward in form of money or something that will give credit to those who donated.

In addition, I created an article that can help you with social media marketing. And how to gain online exposure with the use of an animated video.

Why Does Crowdfunding need an Explainer Video?

Save a lot of money for crowdfunding

Crowdfunding need an Explainer Video

Explainer Videos are mostly created with animation. This means that the cost for the marketer to make one is significantly lower than making a live-recorded video.

Explainer videos will eliminate a lot of work that has to be done with a crew and it will prevent you from using resources that you can allocate to other important aspects of your crowdfunding. I created an article that shows you why is it expensive to create a video.

So, having an explainer video will not only save you a lot of money. It can also save you time and effort. Does crowdfunding need an explainer video? It sure does but let’s look at some more reasons.

Boost Crowdfunding to another level

Boost Crowdfunding

Go beyond giving out brochures or handing out paper advertisements to people. Show a top-notch video to public by presenting a vibrant, fun and attracting explainer video.

This will surely get the attention of professionals because an explainer video tells them that you are a professional too. Give out something that reflects the quality of what you do and how you plan on evolving in the immediate future.

Since in order for you to get funds, you have to convince people to join your cause. Show them that their donation will not be in vain and you will experience a whole new level of crowdfunding. Surely, Explainer Videos boost Crowdfunding to a new level.

Give relevant situations

Explainer videos will be able to show them different situations to prove your cause. Prove to them that you will use their donations to its full potential. Attract and show results by presenting an explainer video.

Remember that explainer videos are very versatile when it comes to making changes and development. You can even create different explainer videos that target situations that show different strengths to the masses.

For example, you want to show them how they can get their investments back. Animate a person that shows different situations about how you use their funds. And what happens to their funds in the future. You can do all of these with an explainer video and it’s perfect for that.

Raise awareness of a large group of people

With an explainer video, you can promote your crowdfunding campaign practically anywhere you want. From social media channels, youtube, email blasts, or even billboard TVs.

Practically speaking, you won’t need extra costs for copyright since explainer videos or mostly original. You can even create different videos for each channel. This is very convenient and you can surely reach a lot of people with this way.

Even if they CEOs or high ranking business people, you can attract the right investors with an explainer video.


Explainer videos are perfect for crowdfunding and it has a lot of benefits. But ultimately, it will still be up to you to further improve your crowdfunding campaign. Surely, Explainer videos can help you reach your goal.

Have you answered the question, does crowdfunding need an explainer video? It surely does! In fact, it is recommended by most marketers or consultants. You can also read here the different strengths of an explainer video and how it can help different businesses.

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