Is Equity Crowdfunding Right for my Start up Business?

CrowdFunding Beat News Wire, By Jenna Taylor, In recent years, equity crowdfunding has emerged as a successful alternative funding solution for high growth businesses which have perhaps been deemed “too risky” for banks, “too early-stage” for traditional angels, and “too small” for VCs. If you’ve found yourself on the receiving end of one of these rejections, you’ll have started looking into other ways in which to raise money for your start up business, and are wondering if raising finance from an online crowd is the way forward.

Equity crowdfunding is a good fit for businesses which are run by entrepreneurially -minded teams show high growth potential is looking to expand their wider team have a proposed exit strategy in mind have a high social media following and brand awareness If your start up has all of the above, read on to see what equity crowdfunding could add for you.

photo courtesy

Photo courtesy


What’s the most important thing about running a fundraising campaign? Surely, it’s hitting your fundraising target, isn’t it? Wrong. Although the money affords you the runway you need to take your start up business to the next stage, there’s so much more you can get out of the process.

Ready-made brand ambassadors Traditionally, people who wanted to share news of which business they’d invested in, did so via word-of-mouth. However, with the introduction of both online investing opportunities, such as equity crowdfunding, and social media people now have the opportunity to broadcast their investment to a worldwide audience. This can work to your advantage because now tens, hundreds, or thousands of investors can tell their potentially millions of followers, who will then all know about your start up business. As long as you’ve positioned your brand well and the message is being spread by people who believe in your business, you should see an increase in brand awareness and interest in your campaign.


As well as the operational team, if you’re serious about growing and exiting your business within the next 7-10 years, you’ll be conducting follow on funding rounds at a later date which means that you’ll also need to start building a strong team of non-executive advisors. The perfect candidates for this role could have invested into your business, so it would be a good idea to carry out some background research on your investors. Alternatively, these people may be able to put you in contact with other people who you would like to invite to take an advisory role in your business.


Similarly to how your campaign can be used to attract advisors, you can also find people to act as mentors for yourself and your team. Although not all of the advice you will receive from your investors will be useful, there is also bound to be some valuable advice in there. When you do start to receive comments, reach out and be proactive in the finding of your ideal mentor. Mentors should offer advice but not try to make your decisions for you. A good sign that you’ve found a mentor who knows their stuff is that they’re busy running their own business, but if they’re the one you want – don’t be afraid to ask them.

Service providers / partners

You’re less likely to have potential service providers and/or partners invest into your start up business than mentors and advisors, but you can still keep an eye out for work you like. For example, maybe you’ve seen a video or styling of an investor presentation than you think looks especially professional, you should contact them. Looking at other business owner’s pitches is a great way to view service providers’ work in action. Then, you can decide if you think they would be able to show your investment opportunity off at its best and employ their services. The company may be half way across the country and you would not have come into contact with them had it not been for the world of equity crowdfunding.



Get on the radar of some serious investors

Raising money from an online crowd isn’t just for smaller investors – your friends, family, and wider network. Some platforms (such as GrowthFunders) have been specifically designed to enable larger, professional investors such as angels and VCs to invest alongside the crowd.    With these platforms, you can attract attention from angel investors and VCs a lot earlier on in your business’ journey than was possible traditionally. These investors want to see traction, financials, and a flawless business plan. If you can get your wider network investing, you could find yourself being approached with match funding. Source:

Tags: , , ,


This RSS feed URL is deprecated, please update. New URLs can be found in the footers at [...]

Crowdfunding For French CastlesNPRYou too can own a French chateau, in part, anyway. Romain Delaume, CEO of Dartagnans, tells NPR's Scott Simon about a crowdfunding effort underway to preserve La Mothe-Chandeniers. SCOTT SIMON, HOST: What if I told you that for about $60, you cou [...]

ForbesCrowdfunding Do's And Dont's From iFundWomen's Karen CahnForbesDuring our conversation, she was transparent in sharing that her first software company, VProud, failed because she “did everything backwards” and spent too much time trying to perfect the product. “Pe [...]

VentureBeat10 reasons the $1 million crowdfunding cap should be $20 millionVentureBeatIt's been18 months since the final rule of the JOBS Act went into effect, allowing equity crowdfunding. In those 18 months, everything proponents of the rule said would happen (and none of what [...]

Small Business TrendsButcher Shop Startup Discovers Crowdfunding Magic Via IntuitSmall Business TrendsWhat startup entrepreneur hasn't dreamed of borrowing Cinderella's fairy godmother or Aladdin's genie to make their every wish come true? While they weren't necess [...]

The IndependentFrench Chateau bought by 10000 people through crowdfunding schemeThe IndependentIn countries where castles aren't snapped up by The National Trust and immediately furnished with a tearoom and gift shop, other ways must be found to preserve historical buildings. The [...]

Crowdfunding sites help Boulder County residents raise money to pay for treatmentsBoulder Daily CameraHer health insurance, once she reached the $2,000 deductible, covered most of the chemotherapy, but she has been receiving extra treatment at the Helios clinic in Boulder and is parti [...]

CurbedReal estate crowdfunding expands into more niche marketsCurbedTo those unfamiliar with real estate crowdfunding, the Fair-Haired Dumbbell development in Portland may be just the kind of wacky, esoteric project one envisions when imagining what happens when strangers pool funds o [...]

The Union LeaderSCORE Q&A: Creative ways to find fundingThe Union LeaderQuestion: I have invented a product that assists in training young ballplayers to hit a baseball. I lack the financial resources to develop and market the product, so I've been thinking about launching a [...] on equity crowdfunding government failed to pass amendments to the equity crowdfunding regime before the end of the year, meaning private companies won't be able to access the funding method until August next yea [...]

CFB Finance


  • 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 |