Press Room

4/2/2015

EquityNet Featured in Inc.

Below is an article by Inc. entitled "How to Stand Out From the Crowdfunding Crowd"

How to Stand Out From the Crowdfunding Crowd
By Jared Hecht, Inc. 
April 2, 2015

With new businesses launching crowdfunding campaigns every day, it's getting harder to hang onto donors' attention. If you fear getting lost in the shuffle, here's how to make your venture shine above the rest.

As the popularity of crowdfunding grows as a source of business capital, more and more entrepreneurs are throwing their hat into the crowded funding ring in an attempt to secure funds for their businesses. And why not? The prospect of avoiding an expensive business loan by convincing strangers to hand over their cash by the fistful in exchange for cheap perks--what entrepreneur wouldn't at least give it a try?

But with new businesses launching crowdfunding campaigns every day, it's getting harder to hang onto donors' attention. If you fear getting lost in the shuffle, here's how to make your venture shine above the rest.

Have a Solid Plan

First and foremost, you'll need a great, exciting idea, along with a detailed, viable plan for how you're going to make it happen. Particularly for a business crowdfunding venture, your consumer-investors want to know that you have considered every obstacle and have what it takes to make your plan happen.

Explain to potential donors exactly how much money you need, what you will do with the funds, and how you plan to use any additional funds raised beyond your initial goal.

Just as you would for a business loan application, include a budget and expected timeline for your project, along with detailed information about your industry, competitors, marketing strategy, and any other information that may be relevant to your success.

The more informed and professional you appear as you launch your campaign, the more likely your supports will be to believe in and rally behind your cause.

Choose Your Platform Wisely

Just like your lipstick color, or your choice of boxers over briefs, the crowdfunding platform you choose reveals unspoken truths to your potential supporters about the nature of your project

If you launch your campaign on IndieGogo, for example, you'll be joining the ranks of your guitarist friend from college who asked you for fifty bucks to record his EP.

Choosing an equity crowdfunding platform like EquityNet or AngelList, on the other hand, gives the tone of a serious business venture, and brings with it investors who expect real life returns.