Think equity crowdfunding is the best way to raise money for your growing start-up?
Even if the funding model makes sense for you, there’s a huge piece of the puzzle that’s critical to a successful campaign – and that’s marketing. Just like a Kickstarter campaign, you need to have a strategy for putting your funding raise in front of enough people who are willing to invest in you so that you reach your goal, otherwise the whole process is a bust. And with only a few exceptions, the equity crowdfunding platforms don’t offer a lot of support for campaign marketing. And that can be really frustrating.
I asked some equity crowdfunding experts to share their best tips for marketing an equity crowdfunding campaign and getting it in front of as many eyes as possible, and their answers were eye-opening. Marketing an equity crowdfunding campaign is a whole different kind of promotion – you’re trying to convince people that putting say, $1,000 into your company is the best use of that money. And when there are so many other investment options people can choose, your campaign could be a tough sell!
Check out what these investing and crowdfunding experts have to say about how to market your equity crowdfunding campaign for the best possible results:
- Build an email list of leads before you launch the campaign – Michael Karavolos, CEO, Kromopolis Digital
Reach out to your existing customers or target market, as they will best understand the problem you are solving and the investment opportunity. – Skai Dalziel, Co-Founder, Guusto- In a traditional IPO process this job is done by your underwriter who will provide you with their right audience; in fact they would not even consider taking a client who they believe is not salable to their clientele. Now, as far as Crowdfunding, one would expect the portal will do the job, but in reality they don’t do it. So the next level will be to have a fabulous SEO expert on your team who will take the information to your proper audience. – Jose Borda, President – ACT BOOKS INC.
Make sure you use experienced professionals to guide you throughout the process. Without such guidance, you will likely run into many obstacles you prefer to avoid. Such unwanted obstacles, not only will cost you time and money but also lead to the inevitable frustration that comes along with the attempts to overcome them. – Lior Ostashinsky, Esq., Owner at corporate and securities law firm Ostashinsky Lior Law Office
You and your team will be under much greater personal scrutiny in an equity campaign as opposed to a reward campaign. Be ready to convince [people that] you can run a business and that you are not just a person with a cool idea. – Tim Wright, Director, twintangibles- The most important tip I can offer anyone is they need to understand their audience. Instead of forcing your ideas onto a target market, try to understand what that market need and build your offering around that and it will be more successful. – Manuj Grover, Director of Business Development @ KoreConX
While full disclosure is critical, emphasize the upside potential for investors in terms of historical, present and/or potential ROI. As with all things, accentuate the positive in the best possible light. No one should ever get the impression their investment would be guaranteed in any way, [but also make] it clear that there is appealing potential reward for the funds they’re placing at risk in the venture. – Howard Sherman, Managing Member, Crowdfund Buzz
Leverage your network. Friends and family can invest through the portal and will jumpstart your raise. That initial funding can help boost the traction on your raise and attract other investors. Contact people who can help you market your raise: Videos, social media, word of mouth, and more. Make as much noise as possible in order to draw attention to your company and the opportunity for people to participate. Leverage your consumers. With equity crowdfunding almost anyone can invest in your business. Your best customers can become some of your most valuable partners and brand champions. – Sean Burke, COO, FrontFundr
Do you have more questions about how to get your equity crowdfunding campaign in front of your potential investors? Ask them here and let our experts weigh in!
And don’t forget to download your (free) Ultimate Guide to Prepping Your Business for Equity Crowdfunding to learn how your business can start raising money from the crowd, too!
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