Having carried out crowdfunding campaigns in the past as well as her current one, Jane has gathered some valuable tips for any business owner thinking of going down the equity crowdfunding route.
Do enough planning so you can get your whole team involved
You’ll find that you need them and if it’s organised in the right way it can be a fantastic experience for everybody. A constant stream of news is essential to keep up during the campaign period so that involves not only marketing teams but people feeding in from other departments. There’s a certain energy to it when everybody is fired up about reaching a target – and it’s more fun!
Hold an event if you can
During both of our campaigns we hosted an event for investors and relied on the expertise of everybody at Sugru. People invest in people so it makes sense for potential investors to meet the people working at your company day in day out. You can also showcase your product or service far better in a relaxed and friendly environment – great for such a unique product like Sugru.
Don’t be defensive
– Especially when answering some pretty direct questions from potential investors. The very model of equity crowdfunding means you put yourself and your company out there and hard hitting questions about valuation and current detail of the business are simply investors doing their job.
Prepare for extra work
– Not only in the run up but also once you’ve been successful enough to hit your target. We acquired 2300 new investors back in 2015 all of who needed regular updates on the business. It will be a brand new experience for any company thinking about raising finance in this way so expect there to be a backlog of work to follow any kind of success.
Investors come in all shapes and sizes, and you can’t win them all. As long as the company information and potential opportunities are clear for everybody to understand you should present this in your own style. Don’t try to be an authority on all things investing if you’re not. If you truly don’t know the answer to a question, admit it. If you don’t normally speak in investment-lingo – that’s fine, you’ll make yourself heard better using your own voice.
There are numerous benefits for a company choosing to go down the equity crowdfunding route. Not only is the crowdfunding process a great way to advertise and reach potential new customers it also builds stronger loyalty with existing customers especially those who choose to invest. Done well it’s a genuine opportunity to build a brand as well as a company.
Inventor and CEO of Sugru mouldable glue, Jane ni Dhulchaointigh