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Top 10 Tips For Creating A Killer Equity Crowdfunding Pitch

Uncategorized 21/05/2014 8:53 am

Are you ready to grow your business?

As you are probably aware, funding for small businesses can be a major barrier, especially if you’re looking for traditional sources of funding especially from the banks. The financial services sector is evolving rapidly and there are lots of innovative alternative finance solutions emerging. Crowdfunding, peer to peer lending and peer to business lending are all changing the financial services sector dramatically and more importantly they are changing the way businesses raise finance to grow.

This post focuses on equity crowdfunding – think Dragon’s Den online! So if you business has the potential to be the next big thing then there is a better, more streamlined way to raise the capital you need to grow. If you want to find out more, download this free eBook which will give you a great overview of how to raise capital for your business online.

In the meantime here’s the Top 10 tips to help you prepare with some links to other really informative resources.

#1 The Idea

So, you’ve got a great business idea, that’s great! But it’s only a start and not much more. You need to make sure you have the skills and knowledge to turn that initial idea into a successful business with high growth potential.

Read more: What’s my business idea worth?

#2 Social Media

If you don’t have much in terms of a marketing budget, you can always rely on Social Media to spread your brand awareness. Talk, Tweet, and Tumbl your way to success with these free yet invaluable marketing tools.

Read more: What can social media do for me?

#3 Your Team

Teamwork is everything when it comes to creating a successful business, no one person can do everything that is required to build something amazing. Identify your weaknesses and hire people who excel in the fields you need them to and work together to achieve success. Your ‘in-house’ team are crucial but don’t forget the importance of your outsourced team and professional advisers. Choose wisely!

Read more: Why you need a great team

#4 Lean Start Up Methodology

Lean start up changes everything. Identify a genuine problem in the market place. And don’t be afraid to express your ideas, talk to potential customers and make sure the problem is real.

Use the Build → Measure → Feedback feature to get quick, quality feedback from your target audience. Are you creating the right product for them, and if not, what do you need to do in order to make it right?

Read more: What is lean start up?

#5 Revenue model

How does your business work for your customers? At what point will you make a profit? Think about key partners, resources and activities, segment your customer and develop your value proposition for those particular customers. Understand how you are going to create value for them. Identify your sales and marketing channels and make sure you have a clear understanding of your cost structure and revenue streams.

Read more: How will you monetise your business?

#6 Financials

Can you predict the future? Well, no one can, but you’re going to have to try. Investors want to know what their money is going to be used on, as well as your business’ projected growth potential. Strong, realistic financials are a must. Be aware of your burn rate and runway.

Read more: Can you really predict your future financials?

#7 Investor Presentation

Develop a short, sharp slide deck, but keep it professional. You are pitching to investors who could potentially offer you money, you need to make sure your online presence is as powerful as it would be if you were pitching face-to-face. What information do they want to find out? Key points to include: business introduction, problem and solution, the team, market size, (trends, and competitors), business and revenue model, USP, marketing strategy, sales channels, use of funds, and exit strategy.

Read more: What should my investor presentation look like?

#8 Business Plan

Your business plan is an extension of your Investor Presentation. This doesn’t have to be “War and Peace” but you should include the narrative that would complement your slide deck. You need to include the business description, executive summary, market research, operations plan, financial plan, project management plan, and marketing plan together in a concise package.

Read more: How to create a business plan

#9 Make A Video

A professional video is one of the most important pieces of collateral you will produce because it’s generally your first point of contact with potential investors. Make it engaging and sell your business well. A poor quality video is an absolute turn off – even if the key message is good. However, a professional, well-scripted video pitch with a strong clear message will be worth every penny.

Read more: Why is a video pitch so important?

#10 Set A Valuation

A lot of things have to be taken into consideration when you are setting a valuation, including: how much you want to raise, Intellectual Property, how quickly you can be copied, and market trends. Make sure your valuation is fair, reasonable and watertight under questioning.

Read more: How to set a solid valuation

Could GrowthFunders help you?

To find out more about equity crowdfunding and us, please visit our website: www.growthfunders.com

GrowthFunders is dedicated to working with forward-thinking partners who share our visions when it comes to offering services and support to high quality, UK-based, small businesses, ensuring that they are investor-ready and therefore have the best chance of raising growth money.

 

Written by Craig Peterson, Co-Founder and Chief Operations Officer at GrowthFunders, a platform developed and operated by GrowthCapitalVentures.

Craig Peterson, Co-founder and COO of GrowthFunders

Follow Craig on Twitter (@CraigAPeterson)

Connect with Craig on LinkedIn 

 

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