Key Metrics in Crowdfunding

Key Metric – Number of Investors on the Platform

Crowdfunding connects projects and investors. Project owners would tend to list their ads on maximum number of platforms as it might increase their chances of raising money. However, what matters for a platform to be successful and result in conversions is the number of investors on the platform.

The greater the number of investors, more project owners would get lured to the platform, the higher would be the chances of conversion which would then result in positive spiral resulting in more investors and projects.

Secondary Metric – Ratio of Investors to Campaigns on the Platform

New projects tend to bring in new investors from their own network. However, for a project to be successfully funded, the investors existing on the platform should be sufficient to fund a large part of the project. Hence, for a platform to show a high campaign success rate, the ratio of investors to projects should be as high as possible.