Crowdfunding for your vehicle-sharing business – what are the options & how to get started
July 18, 2022
min. read
Having a great business idea is rarely enough – you also need money to get the ball rolling. But what if you don't have tens of thousands just laying around to bootstrap your business? Or don't want to go the traditional way and attract VC funding in exchange for a large number of company shares?
This is where many founders choose to crowdfund.
Crowdfunding is a way of raising money for your business from a large number of people through online platforms. In 2000, ArtistShare became the first dedicated crowdfunding platform, and since then, crowdfunding has become one of the top funding sources for businesses, with the global market estimated to reach $300 billion by 2030.
If you're looking to fund your vehicle-sharing business, crowdfunding might be one of the options. It can not only help you attract money but also test your business idea in the first place. After all, if enough people are ready to back your idea, it's a clear sign it has a place in the market.
Screenshot from www.funderbeam.com crowdfunding platform.
Types of crowdfunding platforms & their investors
For your vehicle-sharing business, there are three main types of crowdfunding to consider – rewards, debt, and equity. Let's take a closer look at each of them!
Rewards
This is considered the “traditional” type of crowdfunding and is currently the most popular. The idea is simple – people contribute to a business idea, expecting to receive a reward, such as products or services, at a later stage.
Platforms for rewards-based crowdfunding (few examples):
- Kickstarter
- Indiegogo
Who are the backers?
Regular people with little or no experience in investing; early adopters – people who embrace new things before most other people do. Generally, these people invest because they truly believe in the idea and want to help it come to life, as well as because they just want to be the first in the world to receive the product.
Best for:
Businesses at early stages – idea or early development. Rewards crowdfunding is also for established businesses looking to launch a new product or expand to new markets.
Debt
Debt-based crowdfunding – also known as peer-to-peer (P2P) lending – means that the crowd lends money to a company, which it needs to repay with interest by a certain deadline. The idea is similar to borrowing a loan from a bank, except that in this case, there are many lenders instead of one.
Platforms for debt-based crowdfunding (few examples):
- LendingClub
- Honeycomb Credit
Who are the lenders?
Lenders that support companies via debt-based crowdfunding are individual investors looking to earn a higher profit on their cash savings and/or diversify their portfolio. These investors care about two things – whether the company will be able to repay the loan and how much they'll earn in interest payments. Everything else is secondary.
Best for:
Companies with a stable revenue that can more or less accurately predict their cash flow to repay their lenders. Generally, this is for companies at different stages when they've started to make a profit.
Equity
Equity-based crowdfunding allows businesses to give away a portion of their company to a number of investors in exchange for investment. Investors receive shares in the company based on how much money they've contributed.
Typically, equity-based crowdfunding is done in a way that first, the crowdfunding platform takes the company's equity, then sells the shares on their platform.
Platforms for equity-based crowdfunding (few examples):
- Funderbeam
- Seedrs
Who are the investors?
Typically, these are quite seasoned investors with experience in stock and/or startup investments who are now looking for higher-risk, higher-yield investments. These people might be less interested in the idea or cause behind the business and more in its potential future growth and profits.
Best for:
Businesses at all growth stages, except for the exit/acquisitions stage.
How much can you expect to raise with crowdfunding?
How much a successful crowdfunding campaign raises can differ greatly depending on the stage of your business and the type of crowdfunding you've chosen.
For example, according to the equity-based crowdfunding platform Seedrs, businesses with MVPs usually raise between €30k and €50k, whereas early-stage businesses – between €50k and €250k.
In the meantime, on Kickstarter, the rewards-based crowdfunding platform, the majority of successfully funded projects raise less than $10k. Tech products typically raise between €20k and €100k.
How about vehicle-sharing businesses? Here are two successful examples:
- Electric bike-sharing company Mobi raised €794,891 on Spark Crowdfunding.
- Scooter-sharing startup tretty raised €62,635 from 170 backers with their rewards-based crowdfunding campaign via StartNext.
- Bike and scooter sharing company Frog Mobility raised €138,814 – 40% of their set funding goal – via equity crowdfunding platform Spark Crowdfunding.
- Mount, a PaaS for Airbnb hosts to offer shared vehicles to their guests, raised $133,460 via WeFunder.
To start a bike-sharing or scooter-charing business with 40 vehicles, you should aim for at least €40k. This is doable with all types of crowdfunding models if done right.
Now, let's see what “right” means and how to make your crowdfunding campaign a success.
How to succeed with your crowdfunding campaign
A successful crowdfunding campaign can help you get your business off the ground and raise even more funds than you had expected. The harsh reality, however, is this: as many as 85% of crowdfunding campaigns fail and never reach their set goal.
To increase your chances of a successful crowdfunding campaign here's your basic to-do list:
- Choose the right platform
This depends on your funding goal, the stage of your business, the type of your product, and even your target market. For example, AppBackr is an app-specific crowdfunding platform, StartNext is for products for the German market, while Kickstarter is only available to creators in 25 countries.
- Understand your investors
People backing projects on Kickstarter vs Funderbeam can differ greatly. For example, on Kickstarter, people are more interested in the “coolness” of the product, whereas investors funding companies via debt-based or equity-based crowdfunding platforms care more about the company's projected growth and cash flow, and the money this investment is going to make them. Keep this in mind when crafting your pitch!
- Start preparing early
One of the key secrets to launching a successful crowdfunding campaign is investing heavily in pre-campaign lead generation. Start building a community and an email list of supporters as early as you can – these people will give your campaign the necessary first push to succeed. You should aim to collect 30% of your funding goal within the first week – then, the campaign is likely to reach the goal.
- Craft a compelling pitch
Good storytelling is the key to your campaign's success, no matter who your investors are. That said, the stories they want to hear differ. For a reward-based campaign, craft a story around your product that evokes emotions – make people laugh, help them imagine themselves with your product, or be angry about the issue it's going to solve. For an equity-based campaign, you should focus more on highlighting your team's strengths, market knowledge, and long-term vision.
- A range of rewards
Apart from an option to buy your product, it's recommended to include some lower-priced options for people who just want to support you. For example:
- Weekly or monthly subscriptions to your service
- Free credits to use your service
- Ad space on your product
- Partnership packages
- Priority delivery of the product or access to the service
- Product accessories
- Guided city tours
Other things that can help you launch a successful crowdfunding campaign include:
- Professional visuals – this is essential for making a good first impression
- Videos – they help issuers earn 105% more
- Posting regular updates – those boost your chances of raising 126% more
- Data and stats that make you look reliable – previous successful projects, business traction, existing customer reviews, and testimonials
- Social media presence – when you share your project on social media platforms, your probability of success increases. For example, if you share to 100 or 1,000 followers, the probability of success increases by 20% and 40%, respectively.
To conclude
One of the biggest mistakes founders make is assuming that it's enough to have their campaign launched on the chosen crowdfunding platform, and people will come and invest in it.
The reality, however, is this:
A successful campaign requires a lot of work outside the crowdfunding platform – you need to proactively and systematically look for supporters and persuade them to invest. So, to improve your chances of succeeding, start preparing months before the launch of the campaign.
Interested in launching your own mobility platform?
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Sign-up made easy: ATOM Mobility adds Apple and Google login options
At ATOM Mobility, we’re always looking for ways to improve the user experience. One of the most requested features from our customers has been alternative login options. And now, we’re happy to announce that Apple and Google sign-in options are finally here!
March 11, 2025
min. read
Why is this important?
Most mobile apps rely on phone number verification for sign-ups and logins. This is also the case for ATOM Mobility, where users verify their phone number using a One-Time Password (OTP). We use trusted partners like Twilio, Dexatel, and others to ensure secure phone verification. Big companies like Uber, Bolt, and inDrive also follow this method because it helps prevent fraud and unauthorized access.
However, we know that not everyone wants to use their phone number every time they log in. Some users prefer quicker options, especially if they’re alreadyuse Apple or Google on their devices. That’s why we’ve now added these alternatives.
The popularity of Apple & Google sign-in
According to global data, a significant number of people prefer logging in with their existing accounts rather than typing in a phone number. Research shows that about 60-80% of users choose social logins if given the option. That’s a huge number! By adding Apple and Google login, we’re making it even easier for users to sign up and start using your app instantly.
Many popular apps and platforms already offer these sign-in options because they reduce the time it takes for users to access services. The fewer steps involved, the more likely users are to complete registration rather than abandoning the process midway. For businesses, this translates to higher conversion rates and more engaged users.
What this means for your business
Adding Apple and Google login options isn’t just about convenience. It has real benefits for operators as well:
- Fewer support tickets – Phone number verification can sometimes fail due to network issues, wrong numbers, or SMS delays. With Apple and Google sign-ins, users can skip these problems entirely.
- Better user experience – The easier it is to sign up, the more likely users are to complete registration and start using the service.
- More successful registrations – Reducing friction at the sign-up stage means more people will complete the process, leading to higher conversion rates.
- Higher user retention – If signing in is fast and easy, users are more likely to return rather than be discouraged by a slow login process.
Security considerations
It’s important to note that phone number verification still plays a big role in fraud prevention. If users sign in without verifying their number, there’s a higher risk of fake accounts. That’s why we’re keeping the OTP method as the default while offering Apple and Google login as an alternative.
Many companies, including ATOM Mobility, prioritize fraud prevention. While Apple and Google sign-in reduce the risk of failed logins, they also require additional monitoring to ensure that the platform remains secure. Implementing fraud detection measures alongside these sign-in options can help maintain a balance between user convenience and platform security.
How it works
The updated login screen will now include Apple and Google sign-in buttons alongside the phone number option. Users can choose their preferred method, making the process faster and more flexible.
If you are an ATOM Mobility customer, enabling this feature in your app settings is simple. Once activated, users will see the Apple and Google login buttons immediately when they open the app. This small but powerful change can lead to more completed registrations and a smoother onboarding experience.
What’s next?
This is just one of the many improvements we’re bringing to ATOM Mobility. We’re constantly working on new features to enhance the user experience and streamline operations. Check out our other top features:
- Integrations – Connect with various third-party services like Zendesk, Intercom, and Mavenoid to improve customer support.
- Connectivity – Our platform supports multiple IoT devices and vehicle models, ensuring seamless operation.
- Dashboard – Manage your fleet and users efficiently with a feature-packed admin panel.
Future possibilities
At ATOM Mobility, we believe in continuous innovation. Now that Apple and Google login options are live, we are exploring other ways to simplify user access and improve security. Some potential future developments include:
- Biometric authentication – Using Face ID or fingerprint scanning for even faster logins.
- Multi-factor authentication (MFA) – Adding an extra layer of security for high-value users.
With Apple and Google login now available, signing up for ATOM Mobility-powered apps is easier than ever. Whether users prefer OTP verification or a simple one-tap login, they now have more choices. This update is all about making the experience smoother and increasing the number of successful registrations.
If you’re an ATOM Mobility customer, make sure to enable this feature and give your users the flexibility they want. And if you need any help, feel free to reach out to our team!
Stay tuned for more updates as we continue to improve the platform!
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How Donkey Republic became a micromobility leader
🚲 Donkey Republic is proving that bike-sharing can be profitable, while many competitors are struggling to stay on the road to success. Donkey Republic is partnering with cities, keeping costs low, and focusing on bikes. With more cities pushing for car-free mobility, can Donkey Republic continue to grow?
February 25, 2025
min. read
Bike-sharing has had a wild ride over the past ten years. Some companies threw thousands of bikes onto city streets without permission, while others spent tons of money but couldn’t figure out how to make a profit. Donkey Republic took a different approach—and it worked.
Started in Copenhagen in 2014, Donkey Republic didn’t rush to expand or rely on big investors. Instead, it focused on working with cities, keeping things simple, and making sure the business could actually make money. In 2023, the company earned €15.4 million (DKK 115.2 million), up 70% from the previous year, and, more importantly, it made a profit of €1.27 million (DKK 9.5 million).
From a simple idea to a growing business
The company’s founder, Erdem Ovacik, got the idea when he saw a friend using combination locks to share bikes with others in Copenhagen. He figured there had to be a better way. The answer? A mobile app and smart locks, so people could rent a bike quickly without needing a docking station.
In 2015, Donkey Republic started with just 30 bikes. Instead of flooding the streets with bikes and hoping for the best, it worked directly with city governments to get approval. That helped avoid the problems that companies like Ofo and Mobike faced when they expanded too fast and then collapsed.
The key of not overdoing
A lot of bike and scooter companies try to grow as fast as possible, spending loads of money and hoping to make a profit later. Donkey Republic didn’t do that. By 2020, it had expanded to 13 countries, including Germany, Spain, the Netherlands, and Finland, but always in a controlled way.
A big part of its success comes from working with cities instead of fighting them. Instead of just dropping bikes on the street and hoping no one complains, Donkey Republic made agreements with local governments. This means the company doesn’t have to worry as much about sudden bans or changing rules.
For example, in 2023, Paris banned rental e-scooters, which was a disaster for other companies. But because Donkey Republic focuses on bikes, it wasn’t affected.
Financial growth and key milestones
Donkey Republic has shown impressive financial progress in recent years. In 2023, the company reported a revenue of DKK 115.2 million – a 70% increase compared to the previous year. Even more importantly, they achieved a positive EBITDA (Earnings before interest, taxes, depreciation, and amortization) of DKK 9.5 million, marking a shift toward profitability.
2024 has been even stronger for Donkey Republic. The company reported a revenue of DKK 145 million, representing a 25% increase from 2023. For the first time, they also recorded a positive EBIT of DKK 1 million. This shows that their long-term strategy of working with cities and optimizing operations is paying off.
What makes Donkey Republic different?
Several factors have contributed to Donkey Republic’s success:
- Emphasize partnerships – Rather than competing with cities, they work alongside them, forging long-term agreements that drive stability and growth. Approximately 30% of their revenue stems from B2G and B2B long-term contracts, including subsidies.
- Technology-driven approach – Their smart locks and app-based rentals make it easy for users to find and use bikes anytime.
- Financial sustainability – While some bike-sharing companies struggle with profitability, Donkey Republic has managed to grow revenue while keeping costs under control.
- Commitment to sustainability – By promoting cycling as an alternative to cars, they contribute to cleaner and less congested cities.
What’s next for Donkey Republic
While Donkey Republic has shown that micromobility can be profitable, the road ahead isn’t without challenges. Competition is fierce, and other companies are rapidly expanding their e-bike fleets to compete in Donkey Republic’s space. Additionally, while city partnerships provide stability, they also limit rapid expansion – municipal contracts take time to secure, and some cities prefer to invest in their own public bike-sharing programs.
Still, Donkey Republic is betting that the demand for sustainable, city-friendly transport will only grow. With urban areas across Europe cracking down on car use – such as London’s Ultra Low Emission Zone (ULEZ) and Paris’s car-restriction policies – bike-sharing is well-positioned to thrive.
So while scooter operators continue to battle regulatory headaches and profit struggles, Donkey Republic is proving that a disciplined, city-first approach might just be the key to lasting success in micromobility.
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