After years of anticipation for those who follow equity crowdfunding, the first few months of Title III Regulation Crowdfunding (raises up to $1 Million) have now come and gone. While we can certainly provide the statistics of what has happened, that may not necessarily be what’s most important. What is important is what will work for you, the potential Reg CF user of the future. What is most important are the intangible things that make one campaign more successful than another that are difficult to quantify.
At dbbmckennon, we have been a part of more companies going through Title III Reg CF than any other CPA firm in the country to this point. While we don’t see the marketing efforts, or much of the legal and compliance work that goes into a campaign, we do get to work with company management, portals, and stakeholders in the industry.
At a very base level, what is the most important thing to know? Your audience is out there; it just might not be able to find you. Let’s face it, the internet is vast, and the attention span of an internet user is seconds. As of today, potential investors are not scrolling through deals to find yours on a daily basis. This may happen someday when equity crowdfunding is the norm, but that’s not today. Therefore, your crowd will not find you, you have to find your crowd.
That means marketing and outreach (abiding by the laws of course), that means using your connections to spread the word, it means being involved and being realistic. Not every person you reach will be passionate about your project or understand it. So you have to simplify, inspire, and provide a vision in the precious moments you get with a potential investor.
The other thing that is most important, is to have a committed, enthusiastic, and take no prisoners management team/founder. Equity crowdfunding is not for the lazy, it’s not for the delusional, it’s not for the person who is unwilling to go an extra mile. So be prepared, go BIG, don’t hold back, leave no stone unturned, don’t take no for an answer…and you just may succeed at equity crowdfunding.