What does it really take to raise capital in the disruptive crowdfunding sector?

Oscar A Jofre Jr.

By 

President/CEO, Fintech, Regulated Crowdfunding, Capital Markets,  CrowdFund Beat Guest Post,

All Hands On Deck

All too often, the responsibility of a company raising capital is left in the hands of a few people…and that weighs on them, affecting everyone. The majority of the team is left out of the process, carrying on day to day operations without input into where the company is going, and how it’ll get there.

Prior to the advent and adoption of equity crowdfunding, some companies going through capital raises would hire a professional to do it for them as they are busy running the company. But what if you are not a Fortune 500 company, but one of the remaining 130 million private companies that may not have the means to hire a professional?

With the emergence of regulated (equity, debt, flow through, royalty) crowdfunding, it’s not possible to use the same methods as before. Every member of your team needs to be involved, informed, and ready to go to bat for the company, and they need to do so actively, with humor and grace.

This means that every member of the team need to be informed on what is happening and actively engaged, while also supporting the company through their own social media presence. Potential investors want to hear directly from the company and the team, not a stranger. They want to feel connected.

Regulated crowdfunding has transformed an entire industry. Other traditional models of raising funds no longer work for 99% of companies around the world. Now you must apply the principle of “all hands on deck,” which means you are not alone. You CAN’T go through the process alone, you need to have a crowd – yes, your “inner crowd”.

Accessing your Inner Crowd

The inner crowd is everyone in your company management, board of directors, advisors, employees, advisors, partners, customers, lawyers, auditors, vendors: notice how large your inner crowd is and how many people and companies your capital raise affects? Does it make sense that they get involved? YES!

The new era of capital raising is called crowdfunding (not solofunding), andtransparency means visibility.

Everyone must get involved right from the beginning, and if they are not ready to support, find those that will, and move forward…because the traditional way of capital raising is gone. Your team needs to know what you’re planning to do, and how you’re planning to do it…and they need to be empowered with the skills to create and maintain an active online presence.

Every CEO has the ability to sell their vision and goal to others, inspiring others to follow. This is no different. It’s now transparent so everyone can see that YES, they support you.

Dentons is a great example of a company being involved in every aspect while standing by their word to help companies. They not only supply legal services, but also reach out to their clients to bring introductions via social media.

This is the new paradigm that we are a part of. We all stand to benefit one way or another from a company successfully raising money. People can ‘vote with their money,’ and companies can leverage the power of the crowd to attract their best customers and biggest advocates: their shareholders.

Now get your inner crowd ready for regulated crowdfunding.

See more at: https://koreconx.com/blog/en/blog/all-hands-on-deck/#sthash.o4G8yzHs.dpuf

Tags: , , , , , , , , , ,

HEADLINE NEWS

How Equity Crowdfunding is Different Than Buying StocksMotley FoolIn this clip from Industry Focus: Tech, Motley Fool analyst Dylan Lewis interviews Indiegogo founder Slava Rubin and MicroVentures founder Bill Clark -- about how investing in equity crowdfunding deals is different than [...]

VentureBeatFundThis creates a 'risk free' crowdfunding platformVentureBeatFundThis is launching a new “risk-free” crowdfunding platform to enable creators to raise money for new projects, ranging from fashion ideas to tech projects. The Boca Raton, Fla.-based company is also [...]

Fast CompanyCan crowdfunding save DIY music spaces post-Ghost Ship?Fast CompanyBrooklyn's Shea Stadium needs some cash. The eight-year-old underground music venue took to Kickstarter today to raise money for the renovations and local permits it needs to reopen as a legally legit [...]

Crowdfunding: Alternative source for SMEs financingVanguardIn Nigeria, there are no known laws that guide crowdfunding unlike in U.S, Canada, Turkey, United Kingdom and elsewhere in Europe where the practice is heavily guided by legislation. Though crowdfunding is yet to be fully embr [...]

Business InsiderRevolut is raising another £4 million through crowdfunding — but this time it's going for SeedrsBusiness InsiderThe reason Revolut is announcing the crowdfunding now even though it's not actually doing it is because it's using the announcement as a chanc [...]

Lexology (registration)Crowdfunding - UpdateLexology (registration)Since 1 February 2017 Crowdfunding finally has a legal framework, so, from now on, crowdfunding platforms must obtain permission from the FSMA. The Act of 18 December 2016 (hereinafter "The Act") regulating t [...]

DeadlineFan-Owned Legion M Launches New Crowdfunding Round | DeadlineDeadlineLegion M, which has had a hand in movies like the upcoming Colossal, has been approved to begin a Regulation A+ round of equity crowdfunding.Fan Funded Entertainment: Legion M Launches Qualified Reg A+ ...Cro [...]

Eater SeattleBlack and Tan Hall Making Final Push to Open With Crowdfunding ...Eater SeattleBlack and Tan Hall, an upcoming music venue/restaurant project in Hillman City that aims to unite the diverse neighborhood, is nearly open. The owners are ...and more » [...]

http://hamodia.comKnesset Approves Changes to Advance Crowdfundinghttp://hamodia.comYERUSHALAYIM - The Knesset Finance Committee has approved changes to existing statutes that will accommodate crowdfunding, allowing small companies and start-ups to issue prospectuses to potential inve [...]

Rentivo, a Vacation Rental Platform, Exceeds Crowdfunding Target by 36%Yahoo FinanceRentivo (rentivo.com), a vacation rental marketing/management software company, today announced it has successfully oversubscribed its CrowdCube.com crowdfunding campaign, raising £341K/$425K and excee [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |