Having helped over 500 businesses successfully raise finance on Crowdcube, we’ve built up a wealth of knowledge and expertise on how to make your crowdfunding raise a success.
Our role is to help you secure investment from your customers, friends and wider network, as well as our crowd.
We’ve consolidated our collective crowdfunding wisdom into some simple marketing must-haves to help ensure you join our rapidly growing Funded Club.
Take at look at our pitch promotion guide, which includes hints and tips on how to promote your crowdfunding raise across a range of channels.
Plan and prepare your campaign
Your crowdfunding raise is not only an exercise to raise investment, it’s an opportunity to market your business to a crowd of potential investors, customers and advocates - so you should approach it just as you would any other marketing campaign.
When deciding on your crowdfunding campaign plan, think about what marketing usually works for your business and adopt the same approach to marketing your raise. If something hasn’t worked in the past, there’s a good chance it won’t work for your crowdfunding campaign - so only focus your efforts on marketing you know is effective for your business. For example, if you’ve had great success with PR but limited success with display advertising – take this into account when planning how you promote your crowdfunding campaign.
We’ve created a template to help you create your crowdfunding campaign plan, which you can access here.
Define your key messages and stick to them
Just like any other marketing campaign, you’ll need clear and concise messages that are consistently communicated throughout all of the activity related to your crowdfunding raise. Don’t forget, you’re not promoting your product or service, you’re promoting your business as an investment opportunity. To ensure you cover all the pertinent points, we suggest your key messages are summarised in three brief points, which cover:
The business proposition, aim and why you’re raising finance
Examples of traction such as revenue, partnerships and contract wins
Future potential and market opportunity
When talking to people about your crowdfunding raise, don't assume that they know what your business does or that they know what equity crowdfunding is. Ensuring these points are clearly explained in any communication about your raise is key.
Lastly, avoid using any industry jargon to ensure your message resonates with everyone, including people who may not be familiar with your business or the industry it operates in.
Hit the ground running by securing investment from your network
‘The Crowd’ isn’t just limited to Crowdcube’s 380,000 members, it also includes your own crowd of customers, suppliers, friends, family, angel investors and wider network. Getting your crowdfunding campaign off to a good start is vital to its success; so engage your own network early on to ensure you build and maintain momentum right from the start of your campaign. Businesses to successfully fund on Crowdcube have, on average, raised 43% of their target by day seven of their raise and 63% by day 14.
Shareholders have a vested interest in seeing your business succeed, so inviting your existing network to invest is a great opportunity to increase engagement, loyalty and advocacy amongst your own crowd. Engaging your own crowd could have wider benefits to your business that go well beyond an injection of funds.
When talking to you own network it’s important to remember that they may not be familiar with crowdfunding. So provide them with some background information about what crowdfunding is, who Crowdcube are and also why and how they can get involved. This will help to pre-warm your crowd so that when your pitch is open to investment they are primed and ready to act. Don’t forget, you’re not just asking people to invest, you’re giving them the opportunity to be part of your business and share in its future success.
Our top tips for warming up your own network:
- Consider putting a landing page on your website so people can find out more about your raise on Crowdcube and register their interest; you can then contact them when your pitch goes live
- Develop a crowdfunding campaign tagline that you can start using to familiarise your crowd with your crowdfunding messaging
- Email your network, letting them know that you intend to crowdfund, why you want them to get involved, how they can and what's in it for them
- Start researching angel events, HNWs to open conversations