Crowdfunding for business Startups

Helping Startups With Equity Crowdfunding

Value Proposition Canvas HackathonEquity crowdfunding is a new way of raising capital for startups. Kickstarter has proven a successful model for crowdfunding an idea (by pre-selling the product). Equity crowdfunding takes this further by allowing the crowd to buy shares in the company itself. The volume of alternative finance for startups, entrepreneurship and innovation is growing rapidly.

During the HackHumanity hackathon I realised that startups need help with equity crowdfunding.

Crowdfunding is a delicate balance of describing the product, the team, the business and the investment opportunity. Each of these need to be communicated in a clear, compelling and persuasive way. Often the teams with the best technical skill are not the best communicators.

Equity crowdfunding is awesome, but it’s hard

Raising capital on a crowdfunding platform can be one of the most wonderful and powerful things that a startup can do. But if it fails it can be painful. And the failure is public.

Equity crowdfundingIt hurts me to see wonderful companies that should be successful in raising capital but who don’t succeed because their idea isn’t explained in a persuasive enough way. For example, I fell in love with the Trinkets team at an in-person Seedrs pitch event. The business provides an online mail-order delivery of tampons and feminine products. They are raising capital through a funding round the equity crowdfunding platform Seedrs.

The Trinkets crowdfunding campaign should be succeeding, but it’s not.

The passion, credibility and experience of the team really came through in person. But their crowdfunding campaign isn’t going as well as it should. I wish that there had been a book the team could have read on how to do a good crowdfunding campaign, services to help them and even an agency that could have crafted their campaign to be as successful as it should have been.

The Ghost blogging platform was very successful on Kickstarter.

The crowd can provide a rapid injection of cash, mentoring and a network of fans. Product based campaigns on Kickstarter have proven the willingness of the crowd to invest significant cash. Campaigns such as Ghost (blogging platform), Kano (Computer kit-set) and Pebble (Programmable watch) have set the bar high for professionalism, design and pr to attract the crowd.

Successful equity crowdfunding campaigns need a great product, great business and great promotion of the campaign. The new world of equity crowdfunding requires a complex set of marketing, communications and business skills that could put a heavy drain on a startup unless they had outside help.

How to make an equity crowdfunding campaign succeed

The things that startups find hard about crowdfunding are things that communications professionals are already good at. Communicating with potential investors on a crowdfunding platform is very similar to communicating with potential customers.

Crowdfunding money to rebuild destroyed Montana

by mondoBLIND health clinic
Crowdfunding money to rebuild destroyed Montana family health clinic —
Since 1976, Susan Cahill of All Families Healthcare has been in family practice in Montana, offering compassionate family/reproductive health services -- including abortion. It is for this reason that her clinic was all but destroyed by violent thugs, who even trashed her irreplaceable personal mementos. An Indiegogo fundraiser has brought in about $32K so far...

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iFunding Hosts Real Estate Professionals Mixer in VA/DC Area on May 18, 2014  — Virtual-Strategy Magazine
This is an opportunity for those in real estate investing to exchange information, learn about crowdfunding as a method of rapid fundraising for real estate projects, and enjoy complimentary drinks and hors d'oeuvres.

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