Attracting Equity Crowdfunding Crowds
If you want to launch a successful equity crowdfunding campaign, you need to do more than just create a page and tweet about it. You must be diligent and mindful about attracting equity crowdfunding crowds.
It’s an undeniable fact that most ventures (but certainly not all) will lose steam mid-campaign. In fact, on average, 42% of funds are raised on the first and last three days of a campaign. That’s a BIG gap in the middle, and one that has the potential to derail an entire campaign—but maybe not for the reason you’re thinking.
A study conducted in 2017 by North Carolina State University showed that the number of backers is more important to the overall success of the venture than the amount of money raised. Therefore, it is important to draw maximum attention to your campaign, find your hook, and exploit it creatively. Flex your social capital, don’t be afraid to ask for money, and use feedback from your extended network pre-launch to improve your approach. Take advantage of low-cost, high-impact resources such as optimizing your website with a banner or landing page, adding your campaign link to your email signature, posting on Reddit boards, and publishing a press release.
Educating the Masses
In 2016, it was estimated that only 1 in every 3 Americans was aware of equity crowdfunding as a concept. Even if that number has doubled in the years since, that means there are still over 100 million Americans who aren’t aware of the opportunities available to them. This university study bears that out. Education bridges the gap to attracting equity crowdfunding crowds.
Attracting equity crowdfunding crowds gives every opportunity for a campaign to be huge for. the vast majority of the population who are finally able to invest in young stattups By educating more people about the virtues of investing their money in the industry, you have the potential to create your own crowd of first-time investors.