If you are thinking of embarking on a journey of raising capital for your business, it is important to nail down the key elements of effectively reaching your funding targets, whilst ensuring that you are providing all relevant and necessary information to your potential investors

As mentioned in our previous article, you’ll first need to decide what method best suits your business objectives, whether it’s crowdfunding, crowdinvesting or crowdlending. Once you‘ve established that equity crowdfunding is the right solution for your business, you‘ll need to start organising the information necessary for your fundraising round. Prior to embarking on your crowdfunding journey here are some key factors you need to consider to maximise your chances of securing the funding necessary. 

 

No.1 – Timing

Timing is a key element to the success of your equity crowdfunding campaign. You’ll want to ensure that timewise you are choosing the right moment to pitch. 

Depending on your business needs and whether your product or service is season dependent, you should ensure that your fundraising objectives have been met before you need the funds to boost your sales through that specific season. 

Fundraising marketing tips

Just like all real life scenarios, a lot can happen during the process that might cause a slight delay. Protect your cash flow needs by planning additional buffer time. 

Plan ahead and place your business in a position of power.

 

No.2 – Build your narrative

One of the most important factors for marketing your equity crowdfunding campaign is the narrative. You should not simply aim at presenting figures and facts to potential investors, but rather offer them a story which will translate to them emotionally buying into your brand. 

Talk about your background, what inspired you and your experience in the industry. What the objectives of your business are and what problems you have identified which could potentially be addressed. Talk about your targets and how you plan to meet them. Stay true and offer investors the opportunity to become part of your narrative. 

Gerard Murphy, CEO and Co-Founder of Mosaic said “Humans are hardwired to love a great story.

Fundraising marketing tips

Communicate the narrative with your target audience using video marketing. Studies recently showed that 54% of respondents are looking for more video content from a brand they engage with. Another interesting fact is that 58% of respondents said they consider companies that produce this type of content as more trustworthy and 71% said that videos leave a positive impression of the company on the viewer. 

Find out how to create a great video for your equity crowdfunding campaign

  

No.3 – Paperwork

Investors should be able to access all information and data necessary, hence all your paperwork needs to be ready and easily accessible within your data room. The documents you’ll need to prepare include the following: 

  • Business plan
  • Corporate structure
  • Business value proposition
  • Identification of market segment
  • Revenue model 
  • Use of funds
  • Financials – past and projected
  • A term sheet or agreement outlining the rights you are offering

Fundraising marketing tips

Having all the right information in place will enable your potential investors to make decisions faster.

Eureeca is here to help. If you have any questions regarding the application process don’t hesitate to ask us.

 

No.4 – Network

Crowdfunding as a concept relies on the power of many. That power needs to be fully utilised to increase the chances of a  successful fundraising round. We’re sure that as an SME you have spent time and resources building a network of both clients and suppliers / partners who have contributed to the success and growth of your brand. 

Leveraging that network is detrimental to the success of your campaign, especially those with which you’ve spent time building relationships with. Securing the necessary investment does not happen overnight, trust must be built with time proving the trustworthiness and capabilities of your business.

Fundraising marketing tips

Make sure you invest in marketing your fundraising campaign in order to reach potential investors. Gain their trust by clearly identifying your goals and targets, as well as outlining how you plan to achieve them. 

In a digital age, there are countless marketing strategies you could employ to draw your audience’s attention and educate them. Raising money from investors requires commitment and patience.

 

Fundraising via equity crowdfunding can prove to be a valuable asset defining the future success of your business. By following the key points mentioned above, clearly defining your strategy and business plan as well as having a trusted partner, such as Eureeca by your side, you should be able to secure the necessary capital to achieve your goals.



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