What We Learned: R3 Printing’s Successful Crowdfunding Methods
In addition to raising necessary capital, the R3 Printing crowdfunding campaign provided us with a valuable education in how to utilize a powerful company-building tool.
Below are specific strategies and tactics that R3 Printing utilized in our successful Republic.co equity crowdfunding campaign.
This list is by no means comprehensive. Rather, this reflects our execution focus-areas that resulted in campaign success.
Convincing individuals to invest in your startup is largely a function of demonstrating credibility. With every data point conveyed, you want to increase your credibility. A data point that maintains credibility is OK. A data point that reduces credibility is bad.
Before launching a crowdfunding round, it is helpful to have a robust portfolio of data points that lend credibility to your company.
This includes but is not limited to:
- Strong Team (experience/pedigree/bodies)
- Exciting Product
- Compelling Market Opportunity (TAM/SAM/SOM)
- Traction (Revenue) or Traction Proxies (pre-sales/strategic partners)
- Attractive Terms (Investor ROI)
An effective crowdfunding campaign deal page should convey credibility in each of these areas. Feedback we received from investors on why they invested usually highlighted our strengths in at least two of these areas.
Showing that your credible startup is moving rapidly and cultivating momentum is often the deciding factor between whether a warm prospect converts to an investor or decides to pass. While credible companies come and go, teams that demonstrate a knack for opening doors or have seemingly captured lightning in a bottle are viewed as attractive. The natural human impulse to invest in these companies is often both demonstrative of and leads directly to further investment from downstream investors. This natural impulse also often reflects the relationship the startup will have with their first customers.
Optimized Deal Page Language
The text, images, and video that comprise the body of a crowdfunding deal page are the primary mechanisms by which a startup communicates credibility and demonstrates momentum. We received feedback that our deal page text was the most effective method for conveying value. The deal page text should address the who, what, where, when, why, and how for all aforementioned credibility-establishing data points. The body of text should be direct and concise. The text should not be flowery or hyperbolic.
We found that persons who asked questions via the R3 Printing campaign page did so because they were interested in our opportunity. Answering these questions quickly, succinctly, and thoroughly often converted a prospect into an investor. We prioritized for a sub-24 hour turnaround on all questions.
Campaign updates were essential for increasing credibility, demonstrating momentum, showcasing the scope of the opportunity, and conveying FOMO. Our updates were executed on a weekly basis and directly resulted in follower conversions.
We found the use of channel marketing was an effective method for advertising our crowdfunding opportunity that directly generated investor dollars. In particular, we worked with our platform partner Republic.co for social media marketing. Channel marketing can be complex and costly. ROI can be difficult to gauge. For those without a deep marketing background, a good starting point would be engaging your platform and asking what other startups have done that resulted in success.