Sometimes a lack of money is the only thing standing in the way of your dreams. That's why crowdfunding is such an amazing tool. But there's a ton of competition on those sites. It can be tough to stand out from the crowd and find the right people to fund your project. Which is why you need to present well. Here are a few tips to help you achieve the right results on an equity crowdfunding site.
Launch Only When You're Ready
Only launch when you're prepared to commit your total focus on raising funds. If you're in the early stages of raising capital, it can be safer not to raise too much too soon. You may want to consider finding customers and receive revenues. The cost of raising capital can be high, which could mess with your numbers. Right now, you need to focus on achieving a valuation that's both high and credible to show traction on your operational and financial KPIs (Key Performance Indicator).
Identify Your Ideal Investor
Before you receive any money from the equity crowdfunding site, figure out what type of investors you want to work with. Maybe accredited investors are your best choice. Don't forget that some investors only want to work with companies who are at certain stages in their project. Others are more open. Figure out which type is best for you. Determine how much equity you're willing to give up. You'll need to negotiate the investment once you find your investors. Research your niche target audience. Know their demographics beyond just the financial details. Then find people within that niche market who also are looking for investment opportunities. When it comes time to make your pitch, knowing exactly who they are and what they're looking for will be a huge help.
Put a Social Media Strategy Together
Social media is a must when finding investors. Start building up your followers on social media a few months or more before you put yourself on the equity crowdfunding site. There are a few strategies that are helpful when using social media. Talk about general business news relating to your company. If you hire someone, post it on social media. It will show your company is growing.Share news about all your product and service improvements with your followers. If any new lines are introduced, be sure to rave about it on social media. Lastly, if any positive press coverage is received, by all means, post the links all over social media. Social media is a great place to find potential investors who are already interested in what you're doing.
Include a Great Video on the Equity Crowdfunding Site
By 2019, 80% of all internet traffic will be video. Facebook only has over 8 billion videos each day. You need to make a video if you want investors. Look at it your video as an opportunity to tell your story. Also, look at it from the viewpoint of an investor, if you don't have the time, skill, or resources to make an interesting, well-produced video, how will you succeed as a startup?
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There's a lot of competition on an equity crowdfunding site, so you need to make sure you present well to investors. Here's how to do it.