EQUIVESTO COMPANY BOOTCAMP
Campaign Strategy
Equity crowdfunding is a hybrid of equity investment and traditional crowdfunding. As such, equity crowdfunding campaigns benefit from two types of investors: those who are looking for financial opportunities and those who want to support something they believe in, with shades of investors anywhere in-between. Creating a campaign that speaks to both needs is essential to convert interested parties to investors.
For an equity crowdfunding campaign to succeed, the company needs to work hard to reach out to their community digitally and physically to notify potential investors. Companies should aim to bring 100% of the investors in their campaign from their existing network of supporters, with any support from investors already on the Equivesto platform seen as a bonus. Platforms operate as legal doorways to allow the public to participate, rather than a location with thousands of investors waiting to participate in your campaign.
Regardless of the number of investors on any given platform, companies should still expect minimal engagement from them and should plan to attract the investors they need through their own efforts.
Equivesto will provide support and education around different ways to expand and notify your digital community, both before and during the raise. The time you spend considering equity crowdfunding as a funding option is a great opportunity to increase your brand awareness and do some marketing of your business.
Typically, the average investment in an equity crowdfunding campaign is between CAD $500-$700. With that in mind, businesses looking to raise capital can estimate the number of investors their campaign might require. A raise of CAD $500,000 would potentially require 1,000 investors, each investing $500.
Note: Use the time before your campaign to grow your online following, email list, and community. It is critical build momentum and interest for your campaign prior to its start. Campaign investment is often U shaped, with a lot of investment near the beginning and at the end. Having a strong finish, based on strong marketing efforts prior to launch, are critical to your success.
Equivesto will set up a ‘Coming Soon’ page for you for free. This page will act as a waitlist, where you can gather members of your community who are interested in investing ahead of your campaign launch. This is a great way to see the engagement level of your community and whether you are ready for an equity crowdfunding round. There is no time limit associated with a ‘Coming Soon’ page, so you can take your time and focus on growing your community organically and for free. Equivesto will only start the due diligence process once you have gathered 30% of your raise target on your ‘Coming Soon’ page.
Successful campaigns typically work with an equity crowdfunding marketing firm, and budget between 10-20% of the target raise for marketing expenses. A successful raise of $1,000,000 would most likely see $100,000 spent on marketing.
If you decide to raise with Equivesto, we will work closely with you to provide further marketing coaching and advice.
Core Factors
A round-up of crucial components a successful campaign contains.
Your Why
Share what events led to your company’s birth. Tell a story highlighting what your company stands for and why you are passionate about it.
Your Impact
Let potential investors know how your company aims to create positive impact, or talk about your proven track record of success.
Your Community
Connect with those who matter most to your brand — your community — and win them over by involving them in your journey.
Your Model
Continuity of your company is dependant on a strong business model. Investors want to know you are, or will be profitable.
Your Potential
The bigger your business gets the more people you can help. Let investors know you have growth plans and how you intend to get there.
Key Campaign Elements
Running a successful equity crowdfunding campaign on Equivesto requires careful strategy and execution both on and off the Equivesto Portal. Having a well thought through plan can strongly improve your chances of getting funded. Below are some campaign elements we recommended you focus on.
OFF PORTAL
Digital Strategy
Digital Strategy stretches beyond your standard social media posts and ad frequency. An equity crowdfunding campaign is an intense 30-90 day sprint to get funded. The majority of your funds should typically come in within the first two weeks - nothing is more daunting to an early investor than seeing $0 Invested. Building excitement and hype leading up to a campaign launch helps achieve that initial influx. Build a list of over 100 people from your community who you have spoken to and confirmed their interest. Encourage them to participate immediately on day 1. We recommend you work with a marketing firm to support your campaign. A specific marketing budget should be put aside for your Equivesto campaign (10% of your target raise). Waves of marketing spend need to be carefully planned to optimize momentum.
**Note: there are specific conditions for marketing or advertising security offerings in Ontario. In general, you cannot advertise specifics of a deal, only notify your community and link to a registered portal. For more details contact one of our Dealing Representatives**
Community Building
It’s important to note that the majority of equity crowdfunding investors (90%+) tend to come form a company's existing community. Building strong engagement with your community leading up to a campaign can go a long way. Don’t worry if you feel you don’t have a community - often you’re wrong - people such as friends, clients, and vendors can act as access points to find ‘believers’ who are passionate about what you do. We recommend working with a marketing firm to attract and grow this community prior to launch. Pre-build an email list of interested people and get keep them excited for your campaign launch!
ON PORTAL
The Offer Card
The offer card highlights the main details of your equity crowdfunding deal and is the only public element non-approved investors can see prior to being vetted by Equivesto. It catches their attention and informs investors how much equity is given, the minimum and maximum investment amounts, and the number of days left until the campaign ends. The image you chose to be your banner can affect your ability to attract investors browsing the platform. Choose wisely!
The Campaign Page
The campaign page hosts the meat of your offering. Details such as the offering description, financials, management team, pitch deck, product video, and deal structure are located here. It’s the digital location you pitch your business to interested investors. Much like in real life, often you only have one opportunity to impress. Keep the ‘Core Factors’ listed above in mind when you are putting together this page. Video media tends to be the most effective in building excitement for potential investors given its dynamic nature to demonstrate a lot of information in a short period of time. We encourage all companies raising to put together an enticing product/service video and carefully wordsmith their campaign page. If you are working with a Marketing firm, they will help with the design and creation of video content.
We Work With You
The Equivesto Team provides marketing and finance support, and helps you determine the details of your offer, fill out the campaign page, activate your community, and launch your Equivesto campaign.
We are with you every step of the way — pre, during, and post campaign.