Top 5 tips for start-ups seeking crowdfunding

Crowdfunding has exploded on to the financial world in the last few years, allowing innovative companies to raise funds. For young start-ups, it’s an accessible means of securing investment, and one that allows them to dictate their own valuations. This, in turn, allows them to part with a smaller equity stake, and retain greater control over their company’s direction.

Here’s 5 top tips for any start-up wanting to take its next step with a little help from the crowd:

Know you audience

If you can effectively identify your target audience you’ll be able to aim your product at people already passionate about the field. This is conducive not only to investment, but to creating the necessary buzz about your product within your niche. Make sure you look at geographical targeting, sector targeting, and different campaigners.

2.   Pick the right crowd

Again, there’s a whole host of crowdfunding platforms in the UK – and different crowds cater for different tastes. Make sure you’re pitching your product on the right platform.

3.  Work out how you will spend the money

Make sure you know where the capital you raise is going. The more detailed your plan of action, the more comfortable the crowd will feel putting their money in your hands.

4.   Make the most of Social media

Publicise, publicise, publicise. Investors won’t just happen across your company if you keep your fingers crossed. You reap what you sow, so get sowing your seed on social media sites.

5. Prepare yourself

Ready yourself for rigorous interrogation. Investors will want to know exactly what your company does. We advise preparing a FAQ sheet to prevent an email overload.



About The Author