6 Tips for Successful Equity Crowdfunding for Business



In 2015, the crowdfunding market was valued at $2.6 billion.

Today, the industry is still growing with the UK and US being the primary markets. In fact, the World Bank estimates that the industry will hit $93 billion by 2025.

So, if you need crowdfunding for business, there's no better time to launch your campaign. Fledging entrepreneurs and business owners frequently turn to crowdfunding to secure funds for their operations and ideas.

In this post, we're going to share proven tips you can use to ensure the success of your campaign.

Keep on reading!

1. Be Ready Before Launching the Campaign

Experts recommend business owners to start securing funds at least three months before their campaigns go live online. You can approach colleagues, family, and friends to help you hit your goal.

Also, ensure there are no other critical projects that could disrupt your campaign. The campaign is going to be your life for the next couple months, so it's probably not the time for you to also take your month-long backpacking trip to Europe. 

2. Set Realistic Expectations

Be realistic about the amount you want and from where the money is coming. In some cases, up to 90 percent of your donations will come from your friends and family.

If this is your first business, some investors may be hesitant to fund you. They will always want to know how you intend to use their money. So, be sure to provide as much details as possible.

3. Creating a Compelling Video

The quality and content of your videos need to be compelling enough to convert viewers into investors. Let your viewers learn about your business and achievements.

Highlight the unique selling points to attract potential investors. Keep the video concise but informative. Crucial details including your business model, product demo (if applicable), market size, financials, and financial ask should all be clearly stated. 

4. Share Your Story

In equity crowdfunding for business, the more investors know about you, the better. Be sure to share your story or something unique about you and your business. Be honest about what you share, and avoid making claims you can't prove.

Let your story inspire investors by showing how you have advanced since you started. It should also show your passion and motivation.

5. Build Relationships and Network

You're not going to raise everything online. Offline interactions are also great for fueling your campaign. Attend events and tradeshows to build relationships, which can convert to potential investors.

Every event is a promotional opportunity to grow your audience. Find events where you can present your product, let the attendees learn more about your product and campaign. The more relationships you build, the better.

6. Be Patient

Crowdfunding is like hosting a party. Think of it this way: you can't expect to send out invitations the day before the party and expect everyone to turn up. Planning is crucial.

Promote your campaign on social media and other platforms before you finally launch it. Let people know you, your vision, and product. You should attempt to raise at least 40 percent of your goal

Crowdfunding for Business: Final Thoughts

Are you ready to launch your crowdfunding campaign? If not, don't rush. This post shares some of the crucial things you should do to ensure success. Crowdfunding for business works, but only if you plan well and give investors a reason to fund you.

Are you an entrepreneur looking for financial, knowledge or social capital? You can apply here to get started with our investment process.

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