Equity Crowdfunding Blog

Author Archives: Judd Hollas

11 Business Pitch Tips from Fundraising Experts

business pitch being delivered to a group of venture capitalists

This article was originally published on March 26, 2021. It was last updated for accuracy and relevance on June 6, 2022.

There are many reasons to pitch your business — investment, sales, customer acquisition, recruiting, and more. In this article, we will focus on strategies to pitch when raising early-stage angel or venture capital.

We cover some of the high-level considerations and tips for pitching investors, an outline for early-stage pitch decks, and advice gathered from watching and reading the pitches and pitch decks of the most well-funded and successful startups. 

Surprising States with the Most Venture Funding Post-Pandemic

Rural states saw massive jumps in venture capital investment from 2020 to 2022

When the Covid-19 Pandemic came to America in March 2020, analysts had dire predictions for the investing landscape. Massive economic recession was predicted, and with it layoffs, startup bankruptcies, and an overall reduction in venture capital investment. 

Instead, in just two years venture investments are larger than ever, and funding is flowing to states that haven’t traditionally been seen as startup hubs. Using data and analysis conducted by Pitchbook, let’s look at what states stand out as funding winners – and losers – in 2022. 

Crowdfunding Statistics for 2021

Since 2005, EquityNet has garnered five patents and grown into the leading business funding platform, with more than 200,000 users and $600 million in funding to date. Since 2007, we’ve been internally tracking crowdfunding statistics data that gives unique perspectives into the crowdfunding ecosystem and business funding environment more generally.

From financial metrics such as average funding goals, pre-money valuations, and revenues, to market insights like growth rates and company sizes, we have made these insights freely available. Visit the Crowdfunding Statistics page for interactive charts and even more insights.

Crowdfunding Raises on the Rise

In 2021, the average crowdfunding goal was more than $2.5 million.

How To Set Up a Self-Directed IRA in Five Steps

Maybe you’ve had your standard individual retirement account (IRA) for some time.

But do you want to make more unique investments than your current plan permits with the potential for higher appreciation?

Many people choose traditional and Roth IRAs over a self-directed IRA (SDIRA). However, knowledgeable investors may be missing out on investment opportunities in nonstandard sectors like real estate, private equity, crowdfunding, and cryptocurrency. A self-directed IRA opens up these possibilities.

Interested in learning more? Discover how to set up a self-directed IRA and tips you should know before getting started.

How to Become a Venture Capitalist

Venture Capitalists

When you picture a venture capitalist, you probably imagine someone wealthy. How do venture capitalists make money, though, and what exactly do they do? 

Becoming a venture capitalist is no easy feat. In fact, you’re more likely to be drafted into Major League Baseball than you are to become a venture capitalist — but Major Leaguers don’t count the odds and we bet you don’t either. 

Maybe you’re one to defy odds and wonder how to become a venture capitalist. 

If you’re looking to break into the world of venture capital, there are three main paths: becoming a successful entrepreneur, expert investor, or partnering with one. 

Liquidity Ratio: Definition & Overview

calculating liquidity ratio

Liquidity ratios are used to measure the financial health of a business. These metrics are used by banks and creditors to determine loan eligibility, and by investors to decide if the company is a safe investment. The liquidity ratio helps the company itself determine if they have too little capital or have a surplus of capital that can be put to use.

What is a Liquidity Ratio?

The liquidity ratio is a comparison of a company’s liquid assets versus their current liabilities. It essentially answers the question, “If this company was forced to pay off all of its debts right now, would it be able to?”

What is an Angel Investor? Definition and Overview

Angel Investors

Angel investing is a unique investment option where high net-worth individuals provide businesses with necessary funding in exchange for equity in the business. People seek out angel investment opportunities because of the higher-than-average potential returns.

Angel investors invest in both mature companies and start-ups alike. A recent study shows that the average business that seeks out angel investors is 6 years old. Companies seek out angels because it allows them to connect with public investors while remaining a privately-held company.

How to Buy Stock Directly

Buying Stock

If you’re in the market to invest in stocks you might be weighing the options of buying stock with a stockbroker, through a brokerage account, or purchasing directly from a company itself. 

Knowing how to buy stock directly from a company is key if you’re looking to cut out the middleman and the high fees associated with a broker or brokerage account. This can be done through Direct Stock Purchase Plans, also known as DSPPs, and can be a good option if your primary goal is to obtain a single company’s stock.

Blank Check Company (SPAC): Definition & Purpose

Blank Check Company Meeting

Blank check companies, or special purpose acquisition companies (SPACs), have been on the rise over the past 15 months as an alternative to taking a company public. So what are they and what’s all the fuss about?

What Is a Blank Check Company?

A blank check company is a public entity listed on the stock exchange that doesn’t have any purpose or business plan. The purpose of a blank check company is solely to acquire or merge with a private company, taking the private company public while bypassing the traditional IPO process.

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