Make Your Startup Explainer Video on a Budget

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A startup explainer video is an indispensable tool for communicating your business idea in a concise and compelling way. It's an investment that, when done right, can yield incredible returns by not only attracting more customers but also attracting funding.

In this blog post, we'll delve into the essence of explainer videos, why they are important for startups, how they can help attract funding, and offer practical tips for making them on a budget.

What Is A Startup Explainer Video?

A startup explainer video is a short, engaging video that clearly and effectively explains what your startup does. It's typically a 60-90 second video that details your product or service, the problem it solves, and how it works.

Explainer videos can take many forms, including animations, live-action, whiteboard videos, or even simple screencasts. Regardless of the format, the goal remains the same: to capture your audience's attention and convey your message in a manner that's easy to understand.

Why Should Startups Make Explainer Videos?

Explainer videos are an effective tool for startups for several reasons:

Simplification of Complex Ideas

Many startups are built on innovative yet complex ideas. An explainer video helps break down these complex ideas into digestible information that anyone can understand. This makes it easier for potential customers to understand what you're offering and why they need it.

Improved Engagement

Studies show that users are more likely to engage with video content than text. An explainer video can catch your audience's attention and keep them engaged, increasing the chances they will remember your startup and its product or service.

Increased Conversion Rates

Explainer videos can directly impact your bottom line by improving conversion rates. By effectively conveying the value of your product or service, explainer videos can help convince potential customers to take the desired action, whether that's making a purchase, signing up for a trial, or subscribing to a newsletter.

Attracting Funding With Explainer Videos

A compelling explainer video can do more than just attract customers—it can also attract investors. Here's how:

Showcase Your Product

A well-crafted explainer video can demonstrate your product in action, helping potential investors understand exactly what your startup does and why it's valuable.

Communicate Your Vision

Through an explainer video, you can communicate not just your product, but also your vision. A clear and compelling vision can inspire investors to believe in your startup and want to be a part of it.

Stand Out

In a crowded market, a great explainer video can help your startup stand out. Investors are always looking for unique and innovative ideas, and a standout video can make a strong impression.

Tips For Creating An Explainer Video On A Budget

You don't need a Hollywood budget to create a compelling explainer video. Here are some tips for doing it on a shoestring:

Write a Strong Script

The script is the backbone of your video. Invest time in writing a clear, concise script that communicates your message effectively. Just focus on explaining what you do, why it matters, and how it works in the simplest way possible.

Do It Yourself

With a myriad of affordable online tools and software available, you can create your own animation or live-action explainer video. Platforms like Canva, Animaker, and Biteable offer easy-to-use templates and designs!

Use Stock Footage

If you're making a live-action video, consider using stock footage instead of recording the footage yourself. There are plenty of free or low-cost resources for stock video clips that you can use to piece together your explainer video, and these work out cheaper than hiring equipment, renting locations, and hiring and training actors!

Choose Your Style Wisely

Decide on live-action, animation, or a hybrid of the two. If you're selling a physical product, live-action footage can showcase it well. If you're talking about software or services, animation or a hybrid style would work best. Focus on the best possible way to explain your startup’s value proposition rather than getting caught up in the fancy features of the tool you'll use!


Even if you don’t have the funds for a big production, investing in a decent scriptwriter who can use humor to win people over can be a powerful strategy. Humor is a common theme in many successful explainer videos and can help engage your audience even with budget constraints.

Calculate Your ROI

Before spending any money, calculate your expected return on investment (ROI). Estimate how many people will watch your video, what percentage of viewers are likely to convert after watching the explainer, and ensure that you're looking for an ROI that’s 2-5 times higher than the cost of production.

Grow with Videohaus

Unlock the power of professional explainer videos for your startup with Videohaus! Our self-service video studio provides state-of-the-art video equipment, along with expert video editors, writers, and strategists. With us, you can create high-quality videos on a budget and captivate your audience.

Book your studio space today, or contact us to see how we can help you grow your business!

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