Am I Running My Equity Crowdfunding Campaign Right?: 4 Things You Need to Answer
Launching equity crowdfunding campaigns can be as daunting as it is exciting. Securing funding and proving the mettle of your idea against a test market is, after all, a win-win situation for crowdfunding hopefuls, notwithstanding the effort necessary to make your vision come true.
Still, effort does not automatically mean success when it comes to crowdfunding. This is especially true of equity crowdfunding. Equity crowdfunding is all about establishing your credibility to attract investors, so part of your success comes from the rigidity of your plan and your ability to deliver.
How do you know if you are running your campaign right, then? You can start by answering the following questions and making sure that your bases are covered:
“Who Is My Ideal Investor?”
This question is first on the list for a reason. The kind of campaign you run and your results will hinge heavily on which type of investors you want backing you.
Experienced/accredited investors have greater financial security and overall deeper pockets than non-accredited investors, but they need more convincing than the latter. Note that experienced investors often join equity investments once they are sold on the promise of trading their equity shares once the company goes public. They are also more likely to seek out or ask for more equity/ROI.
Non-accredited investors, on the other hand, tend to be more open to new ideas and generous toward start-ups but also give in significantly smaller amounts. As such, they take less convincing, but you might need to hone your marketing thrust in order reach more potential conversions.
In the end, your marketing and campaign strategies are contingent to your ideal type of investor, or whether you want both types on your campaign.
“Is My Offer Fundable?”
After identifying your ideal investors, the next step is convincing them to invest in your business. Regardless of how you go about this, it is essential that you justify to them that your idea is worth funding. Having supporting documentation that clearly and concisely communicates your vision to your potential backers will help you immensely in this regard.
White papers and other such documentation are often constructed in such a way that highlights information that is critical to getting them off the fence and behind your project. Sound business plans and handsome returns on investments have never hurt any campaign, and are more likely to get you conversions than anything else.
“Is My Campaign Findable?”
All of this assumes, however, that people are sufficiently aware of your campaign. The next question you need to ask yourself is whether you are doing enough to make your thrust visible on all the right channels.
Are you taking advantage of social media advertising? Are you targeting platforms frequented by your ideal investors? Going for traditional PR and marketing online can also help you reach more audiences.
Every campaign is different, but all of them have this in common: the earlier they get traction, the better the odds of their success. Getting paltry results in the first 15 days does not generate interest as much as early success, so don’t be afraid to market on every channel available to you.
“Am I On the Right Platform?”
While the visibility of your campaign has more to do with how you market it, being on the right platform can make your project more findable for your target audience. Building off of a niche platform frequented by your target demographic is always better than trying your luck in larger platforms like Indiegogo that, like most of the larger crowdfunding platforms, don’t have the components and campaign structures that are attuned to equity crowdfunding.
TFGcrowd is where investments go to be success stories.