Equity Crowdfunding – What Is It?

Equity Crowdfunding is alternative way to gain capital in a business by offering up part of your business in return. The way which crowdfunding works is that you appeal to potential investors or backers of a crowdfunding platform such as Indiegogo or Crowdcube, who are always looking to invest into the next big product. 

Equity crowdfunding benefits potential investors as they obtain partial ownership of the company and obtain a profit if the company does well. Crowdfunding in general has become popular in recent times and a variety of businesses are looking to benefit from the market.

Equity Crowdfunding – How To Stay Relevant To Investors

People who’ve given you their email addresses are expecting regular, relevant information about your crowdfunding campaign. You need to make sure you send a series of quality updates to get new backers and maintain their confidence. But, no one wants to drown in tiny deliberations. Post two or three times a week, and make it substantial.

Equity Crowdfunding – Use language cleverly to draw people into your updates.

Create some intrigue by not offering all the information up front in the title. If ‘Something Amazing Just Happened’ or ‘Huge Breakthrough has Been Made!’ or ‘This Changes Everything’ – I’d want to read a whole article about it. However, a title like ‘Hooray, 40% of our Goal Reached!’ will miss an opportunity to communicate in depth with the audience.

2-3 posts a week is great, but make sure it’s news and not olds. Be a broken record for too long and people will think your project is stagnating.

Equity Crowdfunding – Campaign updates can make a massive difference.

Use your website, email lists and social media to inform all your tiers of backers about the amazing progress you’re making, This’ll keep them confident in their investment and get new backers on board. Remember that some investors wait until mid-campaign before investing to see if the project gets traction. Impress them, and you should see an influx of momentum.  

Do you need personalised equity crowdfunding advice?

We can help. Drop The Crowdfunding Studio are proud partners of Crowdcube and Indiegogo. We assist ambitious businesses in communicating their ideas, products and services with outstanding crowdfunding video production, campaign design, crowdfunding marketing and crowdfunding PR.

To learn more about us and our services, visit our website: drop.studio 

Or book a free phone workshop today and ask us anything, like how to create a successful crowdfunding campaign or how to accelerate your business from zero to fully funded.

If you’d like to know how long should your crowdfunding campaign last, see our next article here