• Equity
  • Small Business Finance

What's the number one piece of advice you would give to a founder or entrepreneur who is looking to use equity crowdfunding to raise capital?

2 Answers, 2 Replies
Samson Williams
7/6/2020,
Samson Williams  replied:
 

Have an MVP (minimal viable product). 

 

Having an MVP does a few things: 

 

1. You can engage in Triangle Financing and make your investment crowdfunding an easier journey. 

2. Having a product lets your potential investors know you're serious and further ahead than just having an idea. 

3. The hardest part of crowdfunding is attracting the crowd. When you have a product don't just attract the crowd to invest, invite them to buy your product. That is called generating revenue. Revenue is the best capital in the world. 

 
Bruce Virga
7/12/2020,
Bruce Virga  replied:

Assuming you have a good team, a truly investible company, and a story that is compelling to a crowd of investors/customers who are, for the most part, one and the same, entrepreneurs need the wherewithal to fund an investor/customer acquisition campaign using expert marketing resources.

It is false to think you can solely depend on a funding portal's investor base to acquire investors to your particular opportunity and steer clear of funding portal's that promote the size of their investor base to win your business.

1   
Brian Christie
7/12/2020,
Brian Christie  replied:

In another Q&A posting by @startmotionmedia , they indicate that "Even the viral projects we’ve run only tend to get a max of 15% of their backers from the platform (Kickstarter)." Seems that platforms can only do so much and that the entrepreneurs really must bring their own networks? 

1   
Samson Williams
7/10/2020,
Samson Williams  replied:
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