Crowdfunding is More Than Just Capital; It’s the Chance to Engage With Your Community

When we decided to extend our latest funding round through crowdfunding, it was not a decision made lightly. We see this as part of a broader shift within the startup funding landscape. While traditional venture capital (VC) has its merits, an increasing number of companies are now opting for crowdfunding to capitalise on its unique advantages. Crowdfunding serves not only as a means to gather financial resources but also as a powerful tool for building community and validating products. Companies such as Pebble and Oculus have demonstrated how this method can fund and also propel innovations into the mainstream.

We certainly had the option to follow the traditional path of securing funds through venture capital, as we have done before, but we chose a different route—one that aligns closely with our mission to democratise AI and learning. Our community is our powerhouse, and we wanted to offer them a chance to be part of this journey genuinely. Crowdfunding perfectly complements this vision, providing distinct advantages that traditional fundraising methods simply cannot match. Here’s why we chose this path and why I believe it can be a game-changer for startups.

Efficiency and speed

Firstly, crowdfunding is inherently more efficient for early-stage companies like ours. While traditional fundraising through VC has been instrumental in our growth, setting up a crowdfunding campaign offers a complementary pathway that allows us to tell our story directly to a wide audience. This method is streamlined and effective, enabling us to maintain focus on our core operations while engaging a broader community base. By combining both methods, we leverage the meticulous cultivation of investor relationships characteristic of VC funding with the direct, community-driven appeal of crowdfunding; creating a compelling pitch, sharing our vision through what we do, and immediately connecting with potential backers.

Extending our community

Launching a crowdfunding campaign also offers a platform for building out our AI community, gaining support from those individuals who believe in our mission. Each backer is a vote of confidence in our approach to making AI learning accessible, proving to others—including potential future investors—that what we are doing resonates with the market. We directly address the 10-40% productivity gap that exists in many industries by harnessing the transformative potential of AI. Through our crowdfunding campaign, we’re not only raising funds but bridging the divide between AI capabilities and real-world applications at the same time, allowing our backers to directly contribute to and benefit from innovations that enhance productivity and drive growth in their respective fields.

Direct product feedback

Perhaps one of the most valuable aspects of crowdfunding is the direct feedback loop it creates with backers. This isn’t merely about fielding questions or addressing concerns; it’s an opportunity for crowdsourced brainstorming. Feedback from diverse perspectives enriches our business model and can lead to tangible improvements in our product. At Mindstone, we see this as a chance to refine our ideas based on direct user input, turning potential criticisms into constructive opportunities for growth.

Gaining early adopters and advocates

The individuals who participate in our crowdfunding campaign are more than just backers; they are early adopters of our technology and vocal advocates for our brand. The typical profile of a crowdfunder is a mid-to-senior level executive in a large company. These are the users who will likely share their learning experiences with others, expanding our reach through the most powerful marketing tool available—word of mouth.

Marketing and media exposure

A successful crowdfunding campaign naturally doubles as a marketing campaign. It attracts press coverage and social media attention, amplifying our message far beyond our existing network. This exposure is invaluable as it introduces our innovative approach to AI learning to a broader audience, potentially catching the eye of major investors and strategic partners who are essential for our next growth phase.

While venture capital will remain the traditional model for raising capital, I am a firm advocate for the democratic and inclusive nature of crowdfunding. I argue that for many startups, forgoing traditional funding routes isn’t just an alternative—it’s the more logical choice. Our decision to choose crowdfunding over more traditional methods was not just about raising capital; it was a strategic move to engage with our community, continue to evolve our product in the public arena, and build a strong foundation of support. It underscores our commitment to not just creating another educational platform, but to fostering a community that is actively involved in reshaping how we learn and adapt to the demands of tomorrow. This approach doesn’t just fund a product—it builds a movement.