How Crowdfunding Platforms Engage With Their Communities In Times of COVID-19

The Covid-19 outbreak is posing a severe threat to the whole business environment in the short-term. Entrepreneurs and investors alike are an important part of it as they constitute possibly one of the main key sources of value creation. So, how crowdfunding platforms are engaging with them?

The American Indiegogo takes a very pragmatic approach by urging entrepreneurs to be transparent with their clients. In other words, communication is essential and the reason why is that “many backers choose to crowdfund to get a window into the production process.” So, better “explain the situation and give your backers context” than “forgo details.”

Another US-based Red Crow argues that the crisis is an opportunity for the whole industry. They write: “The greatest Bull in history staggered across the finish line and died 11 years to the day after its birth. The cause of death is reportedly the Coronavirus, or COVID19.” However, despite there are reasons for concern, they believe entrepreneurs will keep focusing on delivering solutions in healthcare so that, “We can hope that the new Bear will lead to a further democratization of Private Equity, and ultimately prove to be a great friend to the American entrepreneur and investor.”

The entrepreneur is also the focal point of the French Lita.co which adopts a different tone by leveraging the spirit of the community, its identity. The core of their message is we need to keep fighting together against the odds of such an expected crisis which worries us but which can’t discourage us. After all, we are social entrepreneurs.

Communication is key as business is made by humans.

Then there is the business-as-usual approach. It is the case of the Italian Ecomill, for instance, which reminds the reader in its newsletter that despite such a turmoil the team can continue to help due to its familiarity with digital. Also the Madrid-based La Bolsa Social, whilst planning to slow down their campaigns in March and April, guarantees the continuity of its operations.

Reassurance also comes from the London-based Seedrs which in a letter states: “We wanted to let you know that, notwithstanding the challenges of the Covid-19 situation, Seedrs will continue to operate business as usual. Our staff are now working from home, and we are fortunate that, as an online business, they are able to do so with very minimal disruption. Investors and entrepreneurs will continue to receive the same high level of care and customer support as normal throughout this period.”

A consonant approach has been taken by the British Crowdcube which has put safety first: “The safety of our team and their families is of the utmost importance to us, so we’ll all will be working remotely for the foreseeable future.” This is why, for example, “Face-to-face meetings with our customers will be done via video conferencing from now on, but we remain on hand and responsive as ever to all your queries and concerns.”

All in all, whatever the approach, communication is key as, in the end, business is made by humans.

Photo by Alex Andrews from Pexels