Big data and the future of deal marketing
It’s not just about crowdfunding
This post was based on a webinar I hosted last week with Steve Dresner of Dealflow.com. You can access the slides we used here: The Future Of Deal Marketing: Using Software And Data Analytics To Target Investors
Quietly, right before our eyes, the future of fundraising has changed. We hear nightly of this company and that project that’s raised millions of dollars on crowdfunding sites like Kickstarter and Indiegogo.
From a backer’s perspective, we’re in a Renaissance of user-driven participation in new artistic and technology projects. And attention and small donations are the currency.
But, fewer people (publicly, at least) are talking about how the dynamics have evolved for entrepreneurs and companies raising money.
The software of deal making
Dealflow.com’s Dresner looks at deals like any other product. Deals are complicated products — full of financial jargon and terms — but products just the same.
The data point to a huge trend that these products — deals — are being driven online in a big way. The repeal of the ban on public solicitation is paving the way. Companies are using the Internet to raise money in ways they never did before.
More than just crowdfunding
Companies like mine (OurCrowd) provide Internet platforms that pair investors with investment opportunities. In our particular flavor of crowdfunding, we’re providing a curated flow of opportunities that meet our investment criteria. So, when investors sign up for our service, they have a pretty good idea of the type of deals they’ll see (vintage, traction, valuation, etc.)
You can see the presentation below for more info and data on how the market for private investments is growing (both from the perspective of the SEC and the crowdfunding industry). Crowdfunding will be just one of many ways companies can utilize the Internet to raise money.
There’s a whole slew of new companies (like Dealflow.com) that are helping companies get smarter and more targeted in the fundraising efforts. Gone will be the days of spray-and-pray marketing to every investor who will listen. That’s incredibly inefficient both for the pitchers and pitchees.
New data-driven applications should better pair supply with demand. Some of the leading companies competing in this space include:
The deal marketing race is on
Crowdfunding is just one manifestation of the new deal marketing and even within this category, you have different flavors (curated vs. non-curated, accredited vs. public, rewards-based vs. equity-based). This hasn’t been lost on institutional investors who see the writing on the wall.
In addition to the $25 million OurCrowd just closed, most of the other firms in the space have raised significant expansion capital from leading investors. Smart investors are choosing their horses in the race — there will be many more as the deal marketing ecosystem forms.
We’re still in the early days of the new deal marketing paradigm. Capital looking for good opportunities will flow more freely with less of the friction around the marketing process — and that I’d be willing to bet on.
Source: The future of deal marketing using software and data analytics to target investors
I’m a partner at OurCrowd and run the investor community made up of thousands of accredited investors from around the world investing in the best of Israeli and global startups.
