This section will take you through the major steps of how to approach equity crowdfunding, and gives you some more detailed tips and pointers. Please note, that these suggested steps are offered as guidelines only. You might find each step more or less complicated, depending on your project, the size of your team, and the amount of time you are able to commit.
Tip: If possible always try to find a company that has succeeded. Ask them about their experience and if they would mentor/help you. It will save you a lot of time and their advice could help improve your campaign.
The early days of your crowdfunding campaign should be dedicated to looking into equity crowdfunding and preparing your offer. You should:
If your application to the platform is successful, you should finalise your business plan and financial offer. It is important to be prepared; ensure your figures are accurate and have back up evidence for your statements. Be sure you can show for instance:
Telling your story in a compelling way, with easily understandable descriptions of your product or service and the financials, is essential. A multi-channel approach might be very helpful, including videos, social networks, live presentations. Ask for feedback from friends and potential customers to keep you on track. It’s important that you:
Ensure that you have a good website: A well-designed, informative and appealing one will go a long way to emphasising to investors that you are serious about your business.
Some of the most effective campaigns include a very short two-minute (or less) video. In it you should clearly:
Early outreach is essential. It has been shown that campaigns that get above 20% of the target in the first few days are much more likely to succeed. You should be active on social media and begin building your crowd by creating and joining conversations.
You should be active with the crowd, online and offline:
Now the campaign is over you should deal with all of the administrative steps, such as registering new ownership and changing the status of a company. In particular you should:
Download an example equity crowdfunding case study: Oscar’s Plastics Factory