Questions

Which crowdfunding platform is the best fit for my company?

My partner and I are trying to start a Reg D equity crowdfunding campaign, but we're not sure which crowdfunding platform is the best fit for our business, which is recycling end-of-life tires into fuels and other products. We are looking to raise several million dollars to expand our current facility, but we know that a number this large limits the options. Someone recommended Crowdfunder and it seems like a good option, but I was wondering if there might be a better one? Your opinion is greatly appreciated!

2answers

There are quite a few platforms out there, each one with its own intricacies.

The first question is, can you raise funding without using a Crowdfunding platform?

Running a Crowdfunding campaign can deliver good results but can be a lot of work and be a big distraction for the business.

The best way to start is to research what platforms might be most suitable.

Then it is worthwhile to sign up as an investor and to follow some of their existing campaigns and understand how they promote campaigns.

This will give you an idea of which platform will help you find your target investor audience.

It is also worthwhile trying to understand which platforms have run campaigns matching your sector in the past and whether they have been successful.

Also looking to see how many campaigns each platform is running in a given month and whether they are achieving their goals.

If campaigns aren't getting fully funded, it could indicate a mismatch in investor audience or potentially too much competition from simultaneous campaigns.

Once you've shortlisted 2 of 3 platforms, the next step is to engage and meet/speak to each platform.

Each platform will have slightly different business models. It is important to understand the details as it could impact your cost of doing the current round and any future investment that comes through investors introduced via the platform

Also, don't be fooled; to raise a round on Crowdfunding platforms, you will need to bring your own investors onto the platform, typically contributing to a third of the total raise. This is necessary to ignite the campaign at the start and give it momentum. The platform will usually agree to charge you a smaller commission for any investors you bring on to the campaigns directly.

These are just a few points to consider, good luck!


Answered 3 years ago

Since your primary aim is raise money, I believe “Donation-Based crowdfunding” is what you are looking for. Therefore, you can try the likes of Indiegogo, GoFundMe, etc.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath


Answered 3 years ago

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