Introduction
Do you know what the most important part of running a business is? It is the financial flow of the business. If the business does not have enough operating costs, the business is bound to fail.
While many businesses start small and with low capital investment, they will need finance to sustain their business operation cost as time passes.
While there are many ways to raise funds for your company, one of the increasingly popular ones is Equity Crowdfunding. It is how US-based businesses are raising unaccredited capital for their businesses.
Equity crowdfunding is a new way for businesses to raise funds no matter their business stage. As we have said that equity crowdfunding helps to raise unaccredited funds, but there is a ceiling you can’t break through. The most you can raise using this method is $1 million.
Equity crowdfunding is slightly different from other crowdfunding practices. To successfully raise meaningful capital, you need to run campaigns. This involves marketing and promoting your business idea, goals, and how your business will help investors make a profit.
Run A Successful Equity Crowdfunding Campaign
Equity crowdfunding is one of the effective methods to raise funds for your business. But, it is in no way easy to make investors interested in your business.
This is why we have a few secret ingredients to make your equity crowdfunding successful.
Define Your Goals
For investors to show their interest in your business, you need to showcase your goals. Therefore, it is important to clearly understand what you want to achieve from the raised capital.
Pitch your audiences with the same goal and show them where and how the raised fund will be used. And how the investor will make a profit out of it.
One of the common mistakes most businesses make is asking for more money than they actually need. This usually happens because they do not think realistically. An investor makes their own calculation before investing.
That said, if they find you are asking more than you need, they become suspicious about your intention and pull back their investments.
Research Your Target Audience
When you are planning an equity crowdfunding, it is important to know your audiences. You must know what they want and how to reach them.
While there are many popular ways to go, we find looking at the existing customer database most appealing. This way, you not only save time but also know what they are interested in investing in.
If that is not enough, you can also look at your competitors’ data, who they are working with, whom they are targeting and how they are targeting.
That said, if you are looking for a database, Investor Data for Wefunder can be a good choice.
Choose The Right Crowdfunding Platform
Equity crowdfunding is getting popular every day. From start-ups to charitable causes, people are finding equity crowdfunding more lucrative and easy. Hence, there are so many platforms to choose from.
While choosing one for you, consider the following.
- The type of projects you want to fund.
- The level of support offered by the platform.
- The fees are charged by the platform.
- The reach of the platform.
Even if one of the factors doesn’t match the platform, look for another. The last thing you want is to adjust to the platform when you are only investing.
Create a Strong Campaign Video
When we talk about the most engaging content type, it is Video content. With video content, you can convey your message and give a visual representation. The combination of the two helps attract investors.
Here are a few key tips to keep in mind when creating a video campaign.
- Start with telling a story.
- Even though you intend to tell a story, keep it short and simple.
- Explain your product and services.
- Offer rewards.
- And yes, Get Creative with your approach.
Finally, Promote Your Campaign
By now, you must think you have done everything in your power. No, Not Yet!
If you wait for investors to come and find you, you will keep on waiting, and all your potential investors will be taken by your competitors.
Use different mediums to promote your equity crowdfunding campaign. And how can you do that?
- Reach out to influencers.
- Get press coverage.
- Use social media networks.
- Host events.
- Use email marketing strategies.
