When crowdfunding appeared a few years ago, it quickly exploded on the internet. Since then, platforms like Kickstarter, WeFunder, Republic, and others have emerged onto the scene, providing entrepreneurs with the opportunity to raise funding for their businesses through equity crowdfunding. This has resulted in a golden time to be an entrepreneur.
Equity crowdfunding involves a startup running a fundraising campaign that explains the level of equity available, how much money the business is trying to raise, what value their product will bring to the market, and why investors should invest in their company. The fate of funding for a startup is partially based on the quality of the campaign, and poor planning and a lack of research can lead to a failed campaign.
Therefore, an engaging and concise equity crowdfunding campaign is the first step towards the success of your funding round. This blog explores a few things to keep in mind when building a successful crowdfunding campaign for your startup.
Know Your Customer
This is not to say that you should spend umpteen time trying to understand their wants, needs, desires, fears, anxieties, frustrations, etc. Quite the opposite. All this means is that you should know who they are so you know what kind of creative content to post on your campaign page. To understand what will be compelling to an audience group, answer some of these questions:
There are a lot of equity crowdfunding campaigns out there — a quick Google search will prove that. And, people who are not interested in investing may still want to follow along with the journey or share what you’re doing with their circles. The best way for this to happen is if you make sure your campaign page is creative, inviting, and inspiring.
Reach Out to Influencers
In the world of crowdfunding, it’s safe to assume that you’re going to need a team to ensure success. Many people will be willing to reach out to their circles and be your “ambassadors” if they see something unique or interesting. The best way for this to happen is to build a community of influencers, then reach out to them and request their help in spreading the word, then provide the link to where they should send their friends and followers.
Tell a Story
Above all that we’ve talked about so far, storytelling is what people want to see. People are interested in your success more than your failure, and the best way to do that is with a compelling narrative of how you got started, why you’re doing it, and where you want to go next in your equity crowdfunding campaign.
Similar to storytelling, people are more likely to get behind something if they believe in it. That means that you need to be open, honest, and transparent with the way you’ve set up your company, presented your idea for an equity crowdfunding campaign, and how you plan on spending their money if they give it to you.
There are a lot of startups out there right now that are doing some pretty similar things. This isn’t inherently bad, but you still want to make sure that your crowdfunding campaign is doing something new or different enough that it stands out and gets people excited.
If your company is on the cutting edge of some awesome idea, then you better believe that there’s going to be a lot of resistance from those who want to keep you from disrupting their industry. That’s okay, though! Just make sure that you have a lot of persistence in your equity crowdfunding campaign and dedicate yourself to being a leader in whatever it is your company produces.
Don’t Be Afraid to Ask
This may seem like an obvious one, but it’s the one that’s going to make or break your equity crowdfunding campaign. You need to know that you’re not alone in this effort and that no idea is too big or too small for the people around you to believe in. Tell them what you’re doing, why you’re doing it, and ask them for their help!
Utilize Your Network
The importance of social networks when running a crowdfunding campaign can’t be understated. Share the message that you’re raising funds across your networks. It’s also possible that individuals in your network can help you spread the word by sharing information with their networks. Engage all the possible social media tools at your disposal and use your social media presence to your advantage.
Last but not the least, if you believe in what you’re doing, never give up. You will find a way to float even when you can’t see one. If you have a clear vision, a defined customer base, and a unique product, people will see begin to understand the potential of your idea. Your persistence coupled with these smart campaigning strategies will take you ahead.
Meanwhile, enjoy your entrepreneurial journey, and if you’re seeking equity crowdfunding support for your startup, feel free to contact us.