The top 5 reasons every Founder should be crowdfunding.
By Samson Williams
TL;DR
- Investment crowdfunding enables you to set terms on your terms
- 60% of investors in crowdfunding campaign are already accredited
- Crowdfunding platforms make managing your cap-table and communicating to investors easier
- Increase in sales revenue while running your investment crowdfunding campaign
- Increase in the lifetime value of your customers, as Investomers
Any discussion about raising money should start off with the obvious. Raising money is hard AF and sucks. Too, there is no guaranteed way to raise capital for your business or startup. That said, if you are considering offering your Startup baby to Sharks for capital, here are a few things you should know about why Investment Crowdfunding should be your first option.
1. Setting The Terms
So, you are looking to raise capital? But on whose terms? Yours? Or Sharks? The primary benefit of crowdfunding is that i...more
Looking for the "right investors"?
You're looking for "the right investor". Your competition is looking for the right investor. Everyone in your accelerator or incubator is looking for the right investor. Your right investors is also looking for the right investor. Everybody is looking for the right investor! But why? Especially when customers have more money than VCs and Angels...
Oh, the reason that your right investor is looking for the right investor is that:
A. General Partners crowdfunding from a small pool of Limited Partners. Thats how you know crowdfunding works. Sharks do it all the time, with each fund they start they spend years raising money from a small pool of investors. The difference for you is, that you now know better than to pool capital from a pool and know instead to source it from the ocean that is The Crowd.
B. Funds generally want to invest after someone else has. As though due diligence gets solved because someone jumps off the cliff first, which gives them the courage to follow with...more
Customers have more money than VCs
Hello Beautiful People, Founders, Entrepreneurs and Business Owners! Ya’ll rock and I want you to know that I love each and every one of you. What you do as innovators and creators truly does make America Great. Did you know that because of your hard work since 2016:
- $585M has been raised via investment crowdfunding
- Resulting in a total of 88,000 new jobs and
- An economic impact of $3.2B over 1000 local communities across all 50 States
The real awesome thing is that in 2020 alone, JOBS Act Investment Crowdfunding generated $214M in small business funding, an increase of 105% over 2019, and 35,000 jobs created during the Pandemic using a regulation that is limiting for both investors and businesses alike. And don’t even get me started on how Customers and Communities have responded to the opportunity to invest in Main Street businesses since the new rules went into effect on March 15, 2021. In case you missed it as of March 15, 2021 the new limit for Regulation Crowdfunding (aka ...more
Your Customers Are Your Business' Biggest Influencers
Your customers are you business' biggest influencers, not "Influencers".
"Most influencers couldn't get their dog to sit."
Darren Marble, CEO of Crush Capital.
The great thing about customers is that Customers are Humans and Humans rarely change. Yes, behaviors, expectations and even language adapt and evolve but at the end of the day, Human Customers all want pretty much the same thing, predictability. When you walk into your favorite store, restaurant or barbershop it's your favorite because you know exactly what you're going to get. The food is predictably delicious. The products predictably great or in some instances just predictably "okay" and you know that. You knew that going in hence why you're there. Especially when it comes to comfort foods. Yes, you know they're "bad" for you. But when you're in need of a bit of culinary nostalgia, a particular smell or taste that takes you back in time, to a place where an emotion or memory lives, you beeline straight to that s...more
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