After funding almost 400 businesses funded on Seedrs, we’d like to think we know a thing or two about what makes a successful equity crowdfunding pitch. With this experience, we thought we’d share some advice for entrepreneurs to consider when creating their Seedrs campaign to ensure they are getting the most out of the opportunity to showcase their business and raise capital.
Get their attention with a great tagline
Half the battle is appealing to investors enough for them to click-through to your campaign. Make a bold (but true) statement, be emotive, tell them what makes you different. Spark investor interest enough that they have to click-through to learn more about your incredible plans and traction thus far.
Create an amazing video
When an investor does click-through to your campaign, show off your professionalism, drive and personality with a short video. It doesn’t need to be a pricey, heavily produced blockbuster, but we tend to think that investors are more likely to invest in a company they understand and trust – which is made easier with a human explanation and story. You can read more about what makes a great equity crowdfunding video here.
Less really is more
Remember that each listing is similar to an “elevator pitch,” a chance to explain succinctly what you are trying to do and why your business will succeed. With this in mind, ensure your pitch is concise and only contains the most relevant information for your potential investors.
Leave them with something powerful
Take your potential investors on a journey. Use vivid descriptions to talk about where you’ve been and where you want to take your business. Educating and exciting potential investors will encourage them to invest. This is just as much a marketing opportunity as it is a capital raising one.
Think about returns
You are asking people to invest their hard-earned money in your business. Sure a small group of investors may be investing for altruistic purposes, but most are ultimately looking to make a substantial return on their investment. Your business plan should clearly explain how you plan to grow the business to a level where a liquidity event may occur.
If you haven’t quite figured something out, be honest
It is rare that every element of a business model has been anticipated or planned through. So if you’ve found yourself stuck on distribution channels, target markets, key hires – anything – just be honest. Your prospective investors will appreciate your openness and they may just have a great suggestion to offer in addition to investment.
Don’t lose sight of the investor perspective
Investing into early-stage businesses can be very risky. In exchange for that risk, investors are looking for meaningful amounts of equity relative to this risk. Take a look at similar campaigns to see what amount of equity they’re offering, and make your mind up from there. Check out founder & CEO of Landbay, John Goodall’s, advice on equity in point five of this article.
Best of luck with your next fundraising round; whether it be on Seedrs or not. We hope the tips above will help you refine your investment pitch.
If you can think of any more you’d like to share tweet us at @seedrs.
