Equity Crowdfunding and Fundraising Tactics
While entrepreneurs mull over conducting a ‘General-Solicitation-equity-offering’ to the SEC accredited investors (at present the only alternative for any equity-crowdfunding drive), majority of the entrepreneurs expect the online nature of the fundraising procedure to automatically perform the fundraising task for them.
Certainly, the possibility to publicly promote the investment prospects considerably enhances the potential for these offerings to get viral and draw new prospective investors. Each and every issuer should make the most of their online-marketing alternatives as much as possible and integrate social-media as well as PR into their fundraising tactics.
However, the getting-to-know or knowing your financers is still relevant. We suggest that issuers should strategize to attain 40 to 50 percent of their finances from 1st degree acquaintances such as close colleagues, families as well as friends and around 30 to 40 percent from 2nd degree acquaintances such as network of friends-of-friends. Now that leaves about 20 to 30 percent from wider acquaintances and of course — the crowd!
Quite significantly, reaching out as well as converting financiers at each level of your network entails lots and lots of campaign work as just online marketing tactics isn’t that enough! And for a successful funding campaign, you’re required to demeanor personalized approach towards all the prospective investors, mail frequent information to your broad and comprehensive networks and perform hell lot of individual networking as well!
Hard Work as well as persistence! Those are the additional aspects which are applicable to both equity crowdfunding and rewards!
Furthermore, prospective investors do need to search for the companies whose founders possess a high quality reason for raising capital from the crowd. Raising bigger sums of funds from fewer wealthy moguls and venture tycoons is often way simpler than raising petite sums of capital from various individuals. Thus in case you don’t wish for the investment deals which those moguls and tycoons have passed over, you are required to explore for the ones which ably fits the equity crowd-funding criteria better than other types of fund raising.