Crowdfunding
Think of this video on your site that attracts funders as
A trailer
Typical exchange that takes place during Angel Investment
Financial backing (amount- see 400 point question- not required for this question) in exchange for company equity
Typical Investors for Venture Capitalism
-well-off investors
-investment banks
-other financial institutions.
Crowdfunding
Sometimes given to investors in exchange for funding (Crowdfunding)
-discounts on products
-gifts
-opportunity to hang out with the team
Funders of your project
Anybody interested in it!
The usual funder for angel investors
High net worth individuals
Main motivation for Venture Capitalists
Usually Pure Profit
The easiest, least involved method of raising capital (comparatively)
Crowdfunding
1 Product/ Project that were the result of Crowdfunding
- VR headsets
- Pop Sockets
- etc.
2 tips for setting up your crowdfunding journey (hint- remember the video)
Examples:
Show your personal brand- what is your why?
Create a well made video- doesn’t need to be long at all, but treat it almost like a trailer for a movie- the point is to attract
market , market, market! - social media, and email marketing
create a budget or at least some form of information that shows HOW you will spend the money, helps people gain confidence when funding
Main motivation for Angel Investors
Mix of Helping society/ individuals and making some profit
Typical Exchange Process
A high amount of funding in exchange for a high amount of company equity
The hardest, most involved method of Raising Capital (comparatively)
Venture Capitalism
Alternate form of raising capital (different from the first 3 categories)
Personal Funds/ Contacts
The typical price range for Crowdfunding
Most effective for(there are exceptions) : $50,000- $250,000
The typical price range from Angel Investors
$250,000-$500,000
Typical price range from Venture Capitalism
$1,000,000-$5,000,000
Types of Raising Capital that provide backing in exchange for company equity
Venture Capitalism (more) and Angel Investing (less)
2 companies that have used Venture Capitalism
-door dash
-peloton
-airbnb
-etc.
3 crowdfunding sites are
Possible answers:
-GoFundMe
-IndieGoGo
-Kickstarter
-Fundly
-StartEngine
Two methods to find/ interact angel investors
Potential answers:
-Referrals
- Network
- Sites/ apps such LinkedIn or AngelList
2 tips to help in your journey...
Potential Answers:
- Establishing and highlighting growing traction in your business
- Networking
-Research Individual Investors to tailor pitch
- Follow Up after meeting
A common tip for all 3 types of Raising Capital
Example Answers:
- Effort- clear defined goal/ vision
- Social interaction, marketing, networking
- Time and Patience
- etc.
Role of Raising Capital
Example answers:
Vital to scaling business- have a broader and more effective reach
Integral to operations- allows you to get more help and accelerate the process
Competitive edge - more credible, more resources, etc.