Best Practices for Crowdfunding Campaigns

Best Practices for Crowdfunding Campaigns

March 1, 2022 by investor

Best Practices for Crowdfunding Campaigns

In running an equity crowdfunding campaign, include these best practices:

1. Tell a story — show how you came up with the idea for the product and how customers and partners validate it.
2. Prepare your investor network — build a list of potential investors who you can pursue.
3. Demonstrate support — start with your family and friends and use their investment to demonstrate investor support.
4. Use multiple channels — use several communication channels such as email, social media, and events to showcase your campaign.
5. Provide updates — keep the investors informed about progress with your campaign and company including information on sales, team, product, and fundraise.
6. Generate press coverage — find a writer for a publication and work with them to capture your campaign into their bigger story.
7. Include visuals — use imagery, including photos and videos. Images convey a great deal more information than words alone.
8. Understand your investor — test your campaign with investors you know to gauge what interests them and what they find compelling.
9. Plan the campaign — prepare your campaign from start to finish. You may need to add more steps as you go, but start the fundraise with a complete plan.

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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.