Raising Capital via Crowdfunding: Successful Profiles

Not every company will successfully raise capital by crowdfunding. Sure, the press picks up the huge wins and gets everyone excited, but those tend to be outliers. As a leader in the space since 2018, our technology platform has powered companies go direct to the market to raise capital.

The company profile that has proven most successful has at least one of the below characteristics going for them:

There is an exciting, relatable, jaw-dropping product

Winning investors’ hearts and minds is a process that is both emotional and quantitative. Companies whose products resonate with everyday people and clearly communicate their distinction and value will stand out leading to a more successful offering. Remember, you’re no longer standing out from the rest of the “marketplace”, you’re up against the rest of the internet. The opportunity is larger, but the bar for success is higher.

There is a strong existing brand or a strong founder/investor/customer base

Issuers with an existing following or fanbase are the perfect candidates for Reg A+ and/or Reg CF offerings. This is because their community represents untapped capital and the ability to reinforce their most loyal followers with “superfan” status as investors. Issuers can save expensive marketplace brokerage commissions for distribution if they tap into their own closed community; thereby minimizing the impact that other brands will have on their conversion funnel.

For more sophisticated issuers, the greatest challenge in raising capital via retail or the crowd is not the awareness of their offering, but turning interested people into actual investors. By eliminating the need for a marketplace where your deal competes with many other offerings, you'll gain insights into digital marketing performance, and your closed loop is perfect for re-marketing efforts to convert more investors.

They are looking to raise a significant amount of capital

If you are looking to raise up to $2M, the costs involved of marketing a successful equity crowdfunding campaign will certainly give you pause. Understand that you have other, more cost-effective options to consider. Choose how you raise wisely, to maximize your ROI on the process.

Raising $3M-$25M from a retail audience involves a high degree of complexity, ruthless precision, and powerful automation - all of which will cost money. Issuers looking to source funding rounds of this size from the crowd need full access to the marketing data mentioned above, as well as the ability to control payment processing via secure methods. Using technology like DealMaker to power your raise is like using Shopify to power your eCommerce. Our technology and can help make a very complicated process run seamlessly.

Our sophisticated technology was a landmark characteristic of several recent premier raises. In 2021, 10 issuers used DealMaker to raise $20M+.

Founders: Consider All Options

At its core, the JOBS Act which has fuelled the fire on Equity Crowdfunding has always been about taking meaningful and modern measures to benefit entrepreneurs while providing investment opportunities to everyday investors. Its intent was to put control back into the hands of the individuals and businesses that power the heart of the American economy.

The core of our value is to make sure your capital raise deal is the best deal FOR YOU. Talk to us if you want to learn more about our technology solutions for your next raise, or visit our Issuer FAQ to dive deep into our Knowledge Base.

The latest from our experts

See ALl Posts