“A 360o crowdfunding support to guide you from zero to fully funded”
Welcome to Vemagnet, a crowdfunding platform designed for small and medium businesses, startups, and organizations. Our mission is important: To help entrepreneurs overcome the funding gap they face, promote their businesses and raise finance to scale up.
The concept is simple! You launch a Campaign for your business presenting a rewards list and setting a funding target. Supporters make pre-orders for 45 days, while you spread the word about your project. Finally, you receive the funds if you reach the target, paying only a success fee. In the meantime, you can definitely feel as we have on-board the most credible payment providers, Stripe and Everypay.
So, let’s have a look at our Services.
A. Crowdfunding Services
“Our platform is developed with the highest standards”
We are ready to provide to you:
- A Secure Platform using the most sophisticated encrypted models
- Free Campaign Launch with a minimum funding target of 5.000€
- Promotion of your products and services to a highly Targeted Audience
- Free access to Tips and Guidelines about fundraising provided on our website
- Money transmission straight to your bank account, paying only a Success Fee
- Statistics and Analytics of the audience linked to your Campaign
B. Coaching Services
“We help you define, organize and present your crowdfunding Campaign”
Not sure how to begin? Except for the platform, our team of expert coaches knows what it takes to run a successful crowdfunding Campaign, which will start your business off on the right foot. Vemagnet team offers both free and customized coaching services designed to help you raise funds successfully so you can launch and grow your best business possible.
- Weekly Newsletter about “How to Crowdfund”
- 30-minute online Coaching Session* about your Campaign
- Access to the most basic Campaign Planning Tools
- On-going Support until the end of your Campaign
- Two hourly online Coaching Sessions*, help you build the pitch and your rewards’ list
* for select entrepreneurs who are ready to crowdfund
C. Other Services
“Our network is your network and streamlines the path to market”
If you need any guidance in the following tasks, contact us to introduce you to our network and provide services in some key areas.
- Ads Management on social media to target those most interested in your crowdfunding project
- Email Marketing to nurture your project backers and encourage viral growth
- Public Relations contacts with established publications to get your project in the news
- Video and Photography services to show your product in its best light
- IT Solutions, developing a landing page, website or an e-shop
You will only need a half an hour to create a Campaign on Vemagnet platform. To make this as easy as possible for you, we have created a detailed step-by-step guide for creating your Campaign.
There are 9 steps to start your campaign which are summarised below.
1. Before starting a Campaign
There are some steps need to be taken before you start a crowdfunding campaign.
Need for funds: It is essential to understand what raising finance means and it is more than valuable to determine how much money you need to raise. Consider the pros and cons and have a clear idea of what are you going to do with this money.
Business planning: Having a clear business plan is the basis for every company. Before you raise finance create your business canvas and clarify your concept, the market, the competition, the company valuation. That way you are able to determine the needs of your business.
2. Create a Campaign
To start a campaign you need to fill some basic information.
Campaign Title: Give a name to your Campaign! Try something short and memorable, based on the fundraising purpose.
If you have already a registered business, please provide us with the Company Name, Company Registration Number and the date of Incorporation.
Note that, in case you do not have a registered business, you should incorporate your company in order to you receive the money once your Campaign is successfully completed on Vemagnet platform.
Sector: Select your sector from the drop-down menu. Your campaign will then be tagged with that sector and it will also ensure that your campaign appears on the search results page for that sector. In case that your sector isn’t listed in the drop-down menu, send us an email at email@example.com and we will add it for you.
3. Campaign details
On the next step, we will need some extra information from you.
The following fields concentrate the most valuable information about your Campaign, so be careful!
Logo: Add a logo for your Campaign, or your company logo if you have already one. The ideal image size is2MB, and in no case more than 6MB.
Cover Picture: Add a cover picture, which will be in the front line of your Campaign. The ideal image size is 1170px x 400px.
Address Info: Select the country and state where your company is or will be located. The area you select will appear as the location for the Campaign on your campaign homepage and will also ensure that your campaign appears on the search results page for that location.
Social Info: You can add links of your Facebook, LinkedIn, Twitter pages and company web page. Users will then be able to click these links which will take them directly to your social media pages. This helps to engage people further with your company and encourage them to sponsor and share your campaign.
Funding Target: Set a funding target on how much you are looking to raise. The minimum target you are able to set on Vemagnet is 5.000€ and you need to reach your funding target in order to receive the funds. In case of raising less than your target, no transaction from the supporters will be done.
Overfunding: You have the option to choose if you are willing to receive overfunding or not. Once the campaign has reached its funding target, it is possible to continue to receive more funds in exchange for additional rewards until the Campaign is completed.
Currency: There are two options of currency you can choose. You can run your campaign either in euro (€) or in British pounds (£).
Campaign Duration: The campaign duration is fixed and it is 45 days. According to experts campaigns running for up to 45 days maximize the possibility of getting funded, so it is considered as the optimal campaign duration.
4. Rewards list
A reward is a way to give something back to a supporter in return for investing in your campaign. As a reward-based platform, your Campaign should provide a list of rewards, and bear in mind that being imaginative and offering interesting rewards can help you attract more investments.
To add rewards, you will need to enter the following details:
Picture: Add an image of your reward to better explain what you offer.
Title: Give your reward a title that grabs the supporters’ attention.
Price: This is how much a backer/supporter will need to pay you in order to receive that reward.
Description: Describe your reward in detail so that supporters know exactly what they are getting when choosing this reward.
Reward Limit Items: Enter how many of that reward will be available to the supporters. If you want the quantity to be unlimited then you need to choose “No” Reward Limit.
Estimated Delivery: Enter the date when you think your reward will be delivered. Even if you aren’t delivering a reward or the reward isn’t a physical product (e.g. a thank you on your website, a service, an e-book) you still need to say when it will be available.
Shipping Details: We want to know here where you want to deliver each reward. You have the options to send it to “My Country”, the “European Union” and “Rest of World”, applying a different shipping cost in every option. If you can apply a standard shipping cost for all over the world, i.e. in case the reward is sent electronically or it is a service provided to your business, you can choose the option “Everywhere”. You must choose at least one option and you can select more than one. You always have the option to add zero shipping cost (0). Bear in mind that the shipping cost is applied to the total pledge and not on every item. That means if a backer selects 10 items of the same reward, the total cost is applied once on the total amount.
Tips: You should create a list of 5-10 rewards so as to increase the chances of getting funded. When your campaign goes live, your rewards will be listed in order of cost, starting from the cheapest, on your campaign page. Keep in mind, you should make your rewards attractive to the audience, presenting special offers, discounts or early-birds, and not just selling stuff.
5. About your Business
This is where you explain your campaign in detail so that people know what your campaign is about, what you are raising funds for and how these funds will be used.
You will need to enter the following details:
Video: Adding a video really helps to bring your campaign to life and can show what the money you raise will be going towards. Your video has to be uploaded on YouTube and you simply need to copy the full URL for your video and paste it here.
Elevator Pitch: The elevator pitch is a short description of an idea, product or company that explains the concept in a way such that everyone can understand it in a few minutes. Use the elevator pitch to convince the audience to support and promote your campaign. It is a place where you can briefly explain your vision and how this project will come to life.
Project Description and Use of Funds: Describe your business product or service, its stage of development (a prototype development stage or a product ready for sale), its competitive advantages and the milestones you have already succeeded.
Give also information about your revenue model, the target market and share information about why your business needs funds and how you plan to use them to scale up. Also, analyze how you plan to overcome the challenges in the near future and give a timeline of what you will do in the next 12 or 24 months.
Team members: Use this section to give some details about your team. Add the team members of your company, or your personal data if you are a solopreneur, and let supporters know about your background and what your role within the team is.
6. Submit your Campaign
Once you have completed the steps above, you can submit your campaign and see a preview of how your campaign will look on our platform before the launch. If you want to change any part of your campaign, this is the time to do so.
Once you have submitted your campaign no changes are available. We will evaluate your campaign and you will receive our response within 5 working days about its validity. If we observe any misunderstandings or something inappropriate in your Campaign we will send you a notification so as to make the corrections and submit your Campaign again. After performing the appropriate due diligence, you will be informed about the exact launch date.
Get some tips on how to launch a successful crowdfunding campaign.
7. Fundraising period
During the fundraising period keep your audience interested and informed about the process. Do not forget to thank your backers/supporters and most important: promote your campaign on social media to attract more. It is time to spread the word and make your project reality.
Your goal is to get your message out to your audience, wherever they are and motivate them to take action. Social media, website updates, emails, and even real-life events should all flow in concert to create a huge whirl of excitement around your campaign.
8. Payment details
We use Stripe as a payment intermediator to securely manage all of our payments. So, in order to receive the funds you raise on Vemagnet, you need to complete the following steps to set up or connect your Stripe Account:
- Connect an existing Stripe account; or,
- Set up a new Stripe account
- Verify your Stripe account and set up your bank details
- Change your payment frequency (or keep it as is if you like)
It is extremely important that you complete these steps otherwise we cannot release the funds to your account! See our step-by-step guide on how to do this.
Once your campaign is successful, the money from your backers will be released to your Stripe account. There is a 7-day window following your campaign’s deadline for collecting and processing pledges. Once the 7-day period has passed, funds will automatically be transferred directly to your account. We will apply a 5% success fee to the total amount of funds raised plus 3% payment processing fees and this amount is all you will ever pay for your Campaign if it is successful. If the campaign is no successful, there are neither transaction made nor fees applied by Vemagnet.
9. Post-funding period
You have already created a community around your business and the post-funding period can help you stay engaged with your audience. Keep your backers/supporters updated about the project developments, rewards production and distribution, or even any news or updates about your company.
It is very important to respond to supporters’ questions, give them regular updates and provide transparency to the progress of your project.
Last but not least, let your audience know that you’re still there and working hard to make the best product you can for them. Share the product iterations, highlights and difficulties. Backers want to be a part of the journey with you!
How can I raise finance for my project?
The first step is to create a fundraising Campaign. Start a campaign here, it’s totally free! You must complete all the tabs in the business plan and submit your Campaign for evaluation. Once we will check and approve your Campaign for its validity, usually it takes 5 working days, you will receive our response. Then you are ready to launch the Campaign and raise finance for your business.
Is it necessary to have an incorporated business?
No, it’s not necessary. You can create a Campaign even if you are on the stage of the idea generation. Although, you should proceed to the incorporation after the successful completion of your Campaign in order to receive the funds you have raised in your business account.
Which countries are eligible for funding?
Through our payment providers, we can send money to 26 countries. So, you must choose a place for your Campaign in one of the following countries: Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Luxemburg, Mexico, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and United States. Note that, before you receive any money, you must have a registered company in one of these countries and also hold a VAT number, business address and business bank account. More countries are going to be integrated into our platform from 2019 on. Contact us to be notified about your country.
How much can I raise through Vemagnet platform?
You can raise as much as you want using our reward-based model. The minimum Funding Target is 5.000 and you can raise in Euro (€), US Dollar ($) or Pound Sterling (£). Choose “Overfunding” to continue receiving funds even if your Campaign hits the Funding Target.
How many days do I have to raise finance?
You have 45 days until the Campaign will be closed. If the Campaign reaches the target within this period you can stop it or you can continue to receive funds as “Overfunding”.
Should I give something in return?
Yes, it is necessary to give at least one reward to your backers. The most common is to send the products or the services that you are going to develop. You should create 5-10 rewards to give a diversity to your supporters to choose. You may include to your reward list some products or services you have already developed and want to sell to the crowd.
Can I set a unit limit for the rewards?
Yes, you can set a unit limit for each reward. Be careful, strict unit limitations could have an impact on your minimum funding target. Our advice is to set at least one reward free of limitations in order to avoid this situation.
Can I choose where to deliver my rewards?
Of course, you can choose. You have the options to send it to “My Country”, the “European Union” and “Rest of World”, applying a different shipping cost in every option. If you can apply a standard shipping cost for all over the world, i.e. in case the reward is sent electronically or it is a service provided to your business, you can choose the option “Everywhere”. You must choose at least one option and you can select more than one.
Can I apply extra shipping costs linked to my rewards?
Yes, you can apply a reasonable shipping cost for each reward you offer. Once you choose the area you want to deliver your rewards, you can add the extra shipping cost. Bear in mind that the shipping cost is applied to the total pledge and not on every item. That means if a backer selects 10 items of the same reward, the total cost is applied once to the total amount.
What fields have to be completed to submit a Campaign?
You must complete the all the tabs presented on the page “Create new Campaign”, including Basic and Additional Info, Funding, Rewards, Pitch, Business, Team and Account. Don’t worry we have tried to keep it simple and ask only the most valuable information for your project and keep in mind that supporters need this information to trust you and support your Campaign.
When is my Campaign ready for launch?
Once you submit your Campaign for evaluation you will receive within 5 working days our response about its validity. After performing the appropriate due diligence, you will be informed of the exact launch date.
Can I edit my Campaign after being published?
Unfortunately no. Once your campaign has been published, it is exposed to the general public. It would be harmful to your campaign if you redefine some of its core aspects. Our recommendation is to work in advance on your business plan and be sure that you give a clear view of your business.
Do my duties stop after the launch of the Campaign?
This is the time you were expecting for! There is a huge crowd in front of your crowdfunding Campaign ready to support your project. You should keep them updated with your latest news, answer their questions and boost their enthusiasm. Also, you can communicate and inform your network to spread the word and support your Campaign.
Can my Campaign receive contributions from all over the world?
Potentially yes! But it depends on what you decided about the rewards’ distribution. For example, if you chose to deliver your rewards only in the EU, then you will receive contributions only from the EU.
Can I cancel my fundraising Campaign after being published?
Yes, you can cancel your fundraising Campaign at any time. There is no charge and you are free to proceed with that decision until the final money transaction to your bank account.
What if my Campaign does not reach the minimum target?
Every campaign is under All or Nothing model. That means if your Campaign doesn’t hit the target, i.e. is unsuccessful, no transaction will be made neither from the backers nor to your account.
How much is Vemagnet’s fee for my Campaign?
It’s totally free to create and launch a Campaign on Vemagnet platform! You will only pay a commission fee of 5% on the raised amount, if and only if your Campaign is successful. If your Campaign is unsuccessful there is no charge, since no money transaction is being made.
Additionally, there is a 3% payment processing fee for all the transactions operated by our payment providers (Stripe & EveryPay).
In case you want to have a tailored-made service linked to your Campaign, such as graphic design services, marketing or business coaching, contact us to find a solution through our professional network.
Does Vemagnet platform use a payment service provider?
When will I receive the funds on my business bank account?
Once your campaign is successful, the money will be released after 7 working days. There is a 7-day window following your campaign’s deadline for collecting and processing all the money transfers. After this period, all the contributions from your backers/supporters will be released to your account minus 8% (3% payment processing fee and Vemagnet 5% success fee).
Should I create a Stripe or Everypay account?
If the payment provider for your Campaign is Stripe, then yes you should create a Stripe account in order to receive your funds. providing a business bank account related to your Campaign. Once you’ve launched your Campaign, it is not possible to edit your verified identity, funds recipient, or bank account information.
If your payment provider is EveryPay, you don’t need to create an account and we will contact you to fill your bank account details in a customized Form.