5 More Networking Tips To Boost Your Equity Crowdfunding EffortsSep 06, 2022
Finding equity crowdfunding investors can be difficult at the start. But with enough effort, you should be able to reach your financial goals in no time. Equity crowdfunding can be defined as gaining investment without garnering debt. It entails finding investors who are willing to financially support your company in exchange for a financial stake. A study published by the Humanities and Social Sciences Communications journal found that aside from risk and reward, there is a social aspect that dictates whether or not people are willing to invest in a company through crowdfunding. Campaigns become more effective when there is a personal connection — developed through proper networking — between potential stakeholders and business leaders. Oxford University found that 40% of prospects become customers when in-person meetings take place, demonstrating the importance of the personal touch.
With that in mind, it is important to be able to expand your professional circle in order to find individuals who are willing to participate in your equity crowdfunding strategy. These are just some of the tips you can use to boost your efforts:
Don’t be shy to reach out to people
LHH’s feature on building a network explains how we all have a network we can tap into. If you think you don’t, you’re likely not mining deeply enough into your experience. And if you find the idea of reaching out to acquaintances a little scary, then think of networking as striking up a conversation. Start by contacting family and friends. Be genuine and answer questions sincerely to prove that you are passionate about creating your business. While the people you know might not be able to help you directly, they might be able to introduce you to someone who can. This will also expand your network of acquaintances, which you can tap into in the future.
Attend relevant conferences
The Balance Careers’ write-up on networking events describes how conferences are the perfect avenue for networking as many individuals are there for the same purpose. You might also meet people who can give you new ideas on how you can improve your startup, or gain new industry insights to workshop your ideas. You can search on the internet for events happening near you or you can try looking through local bulletin boards for similar announcements. Be sure to not let your nerves get to you when attending conferences, so you can properly showcase your startup to other attendees.
Utilise social media
The purpose of social media is to be able to connect with people virtually. There are many platforms that are specifically for professional networking, such as LinkedIn, which are underutilised when it comes to equity crowdfunding. You can make connections with people you have met in the past, went to school with, or even professionals who are just within the same industry. There, you can create posts that market your startup idea to find investors looking for potential projects to back. When using these platforms, do make sure to properly vet individuals before proceeding with any agreement.
Make communication short and sweet
It is important that you can effectively communicate with people. While networking is about building relationships, it is necessary to remain professional when building your network. In our past article titled ‘A Recipe for Crowdfunding Success’, we explain how business pitches should be done in a way that is understandable and straightforward. Learning how to communicate in plain English ensures that everyone you present to can fully grasp your startup’s goals and how it works. Be sure to have a full business plan and create an “elevator pitch”. This will leave them wanting more, and you will be able to easily answer any questions they may have.
Use an equity crowdfunding agency
If you are still struggling to find new investors through networking, it might be time to use one of the UK’s leading crowdfunding support agencies, ISQ Crowdfunding. Amongst other things, they show businesses how to engage potential stakeholders by aligning with their goals and visions. The Crowdfunding Programme helps you create a successful campaign, build an effective marketing strategy, and find your target audience for investors. ISQ’s tried and tested process has helped many startups in the past, and can surely make a difference in helping your crowdfunding journey.
Equity crowdfunding isn't a smooth sailing process. Effective networking, however, can speed things up and support you in meeting your targets as a startup.
Article contributed by Romy Jaclyn exclusively for ISQ