You have been making great products for years. You have loyal customers, reliable suppliers and you see opportunities to grow. Now it is time for the next step: scaling up, moving to a new location or investing in visibility. Financing is crucial for that. You keep hearing about crowdfunding. But isn’t that just an expensive way for startups to borrow money when they have nowhere else to turn?
We speak with Eltjo Miedema, campaign strategist at CrowdAboutNow. This platform has been successfully raising money for local makers for over 15 years. In total, more than €130,000,000 has been invested and 115,000 people have participated in a campaign — mostly local, independent entrepreneurs, a large share of whom are in the manufacturing industry.
“Crowdfunding is just collecting donations for startups that can’t get money anywhere else, right?”
Eltjo: “That is exactly the misconception I hear all the time. If you look at Kickstarter campaigns for gadgets that don’t exist yet, that image does hold up. But that is only a very small part of the crowdfunding market. What we do is fundamentally different. We work with makers who could easily go to other financiers too. HappySoaps, Botma & Van Bennekom, Walhalla — they all chose crowdfunding deliberately.
A financier like a bank only gives you money. Financing through your community gives you money, ambassadors, direct marketing, new partnerships and feedback from your target audience. Take FrietHoes, a local chip maker with national ambitions. Facing a major move to a new factory in the new year, they decided to finance a frying line and cooling machine worth €500K together with their community of real chip fans. They did this with 240 ambassadors, which simultaneously boosted their turnover and generated significant media attention.
With crowdfunding, you also decide what you give back yourself: a loan with interest, rewards in the form of products, or a share in your company.”
“But I can just go to the bank, can’t I? I’ve been a customer there for years.”
Eltjo: “I recognise that thinking. For many entrepreneurs, a bank loan feels like a kind of validation — proof that you are serious enough. But let’s be honest: the bank primarily believes in personal securities and your figures. The bank only looks at one aspect of your business. Your community looks at a much bigger picture: what your product means to them, how you produce it, what you contribute to a better world and where the money you earn with your business ends up. That is a different kind of trust.
And here is the key point: you increase your independence by financing through your community. The bank sets your terms. With crowdfunding, you decide what you give back — 3 to 4% interest is standard, but you choose what extra benefits you offer.
An entrepreneur I supported would have paid 7.5% at the bank, with her machinery as collateral. With her customers, she raised the money at 4%, with no collateral, and as an added benefit offered exclusive new products and behind-the-scenes tours. The result: lower cost of capital, no collateral and 120 new loyal customers who are even more committed. And if you are honest with yourself: who would you rather share your success with — an anonymous financier, or the people who regularly buy from you?”
“Sounds good, but isn’t it simply too much work for what you get in return?”
Eltjo: “Alright, let’s do the maths. A campaign takes about 4 to 6 hours per week during the preparation phase, which typically lasts 2 to 4 weeks. The campaign then runs for an average of 6 weeks, during which you spend roughly one day a week on it — not a full day in one go, but spread across several days.
That might sound like a lot, but you can only fairly judge that if you know what it gets you. In an average campaign of €150,000, you typically see around 100 to 200 new ambassadors, regional and national media coverage, and for entrepreneurs with a B2B strategy, it often leads to 2 to 3 new partnerships in the months following the campaign. One entrepreneur I recently supported used the campaign to open doors with new retail clients. Successfully.
Much of what you do during the campaign is marketing- and revenue-related. But the short, honest answer is: yes, it takes time.”
“But I don’t have a large community at all. I’m just a local maker.”
Eltjo: “Makers say that a lot in the first conversation. And sometimes it is true. More often, there is actually a fairly sizeable community — it just is not clear how it is organised or what value it represents. Entrepreneurs are often unsure who they can reach, how to reach them, and find it difficult to estimate what that group is worth. In that case, we look together at:
- How many people buy from you regularly?
- How many shops sell your products?
- Which suppliers do you have contact with?
- How many people follow you on social media?
- How many fellow makers do you know personally?
- How many subscribers do you have on your newsletter?
Before you know it, you are looking at a few hundred people. That is typically already enough to raise €100,000.
It is important, though, to assess upfront how strong your relationships with these people are — or rather, how strong they perceive their relationship with you to be. Crowdfunding is largely about goodwill: people invest because they feel an emotional connection to your product, your mission and you as a person.
For a campaign of €100K you need roughly 80 to 120 investors with an average investment of €800 to €1,000. We see that the first 30 to 40% typically comes from the entrepreneur’s direct network and existing contacts. After that, the challenge is to engage the wider circles around them — and to reach people who did not know you before. That is where we help.
These figures vary considerably depending on the stage of your business and how seriously you take the preparation. In my experience, it works best when we define a clear strategy upfront with concrete milestones, so we know exactly where the investors will come from. This often extends the preparation period by 2 to 3 weeks, but also significantly improves the outcome.”
“Can I combine it with other financiers?”
Eltjo: “More than that — almost every entrepreneur does. We see several scenarios:
Scenario 1: A combination of own capital and crowdfunding — Entrepreneurs can often contribute some of their own capital; sometimes this is a requirement from an external financier. Crowdfunding can then be used to top that up, or to finance the entire remaining amount. Being open about this builds trust.
Scenario 2: A combination of one or more larger investors and crowdfunding — Many entrepreneurs in a growth phase already have a group of investors. They are willing to co-finance, but prefer to spread their risk. Lately I am also increasingly seeing the request for crowdfunding come from the investors themselves: show us that beyond us there is a large network willing to co-invest and buy your products.
Scenario 3: A combination of traditional financing for machinery and crowdfunding for flexibility — Other financiers are more willing to finance something when there is collateral. At the same time, it is not always feasible to crowdfund the entire amount. In that case, crowdfunding can cover the portion that other financiers consider less fundable — marketing and visibility can be such a line item.
Generally, financiers prefer to see that you have diversified financing. It reduces their risk — especially when it is smart capital: financing that brings not just money, but also knowledge, engagement and support.”
“What if it doesn’t work out? I’ll lose face with my customers.”
Eltjo: “Of the campaigns we launch and support, more than 80% succeed. Why? Because we are very honest upfront.
In the first conversation, we look at a number of things:
- Network size: Do you have sufficient reach?
- Network quality: How engaged are people with you?
- Type of plan: Does your network understand what the money is needed for?
- Target amount: What is needed upfront to be able to raise an amount with confidence?
If any of these is not right, we say: wait. Build your community further first. Then we work together for a few more weeks or months to lay a solid foundation. We have no interest in campaigns that fail.
And even in those rare cases where it does not work out, you barely lose face. Almost all campaigns that fall short stay below 30% of their target. That is the direct, warm group around your business with whom you shared openly where you want to go. People had a choice, and you showed them you take them seriously. Moreover, everyone gets their money back if the target amount is not reached within the agreed timeframe.”
“Who does this actually work for? And who is it not for?”
Eltjo: “Crowdfunding through your community works best for:
- Artisan product makers — think coffee, beer, personal care, food. In these industries, people value craftsmanship and want to be part of a story.
- Sustainable makers — circular products, zero waste, local supply chains. Your audience shares your values and wants to actively contribute.
- Design & lifestyle products — clothing, jewellery, interiors. Customers identify with your brand and aesthetic.
- Local producers — everything you make regionally and sell locally. You have offline touchpoints with your community.
It works less well for:
- Pure B2B products without end-customer contact
- Makers who are not comfortable with visibility
- Products without a clear story or values
Essentially it comes down to this: if people know you as a maker and feel connected to what you make, it works.”
“Last question: why should I consider crowdfunding now?”
Eltjo: “Here is the difference. Growing on your own means: a little more revenue each year, maybe making a real investment in a few years’ time. But you also risk never truly being able to take that next step. Crowdfunding can significantly accelerate this process and also helps you sharpen your story — and with it, your marketing.
This way you have:
- Capital to make that leap now
- Ambassadors who open new sales channels
- Feedback from your most loyal customers
- Marketing and PR during the campaign
- Partnerships that emerge through visibility
But most importantly: you stay sharp. During a campaign you are in conversation with the people who buy your products. What new products do they want? Where should they be able to find you? You also stay sharp on the values you want to build on and carry forward together with your community.
Growing on your own means continuing to make what you already make. Crowdfunding means deciding together with your community where you grow towards. The question is: do you just want capital, or do you want a community that helps build your success?”
“Curious whether crowdfunding suits your situation? At CrowdAboutNow we always start with a no-obligation exploratory conversation. We take an honest look at your network, your business and your plans. If we think it is not going to work, we will say so.”
Take the test to see whether your plans are suitable and you are ready. As a product maker you can also schedule a short introductory call: daniel@crowdaboutnow.nl.