Raising capital online is a new option offering many advantages including efficiencies, transparency and the option to engage a broad group of investors. In order to fully maximize your success, it is important to plan ahead. To help you, we’ve put together five key tips.
1. Know your specific audience
Who do you want to engage? Try to understand the characteristics of your potential investors. Similar to how companies do market research on their target customers, there’s also research done on potential investors. These individuals can be your customers, professional connections, or those within your community. Investors are interested in opportunities for different reasons so make sure to separate
Take the time to evaluate the initial investors and see if they represent your original audience.
Consider the following before tailoring your content
- Content is catered to these individuals (your investors) who are passionate about the company’s mission.
- Some companies take a broad
approach byreaching out to as many people as possible with messaging that appeals to a large group.
- Other companies embrace a narrow approach that focuses on a specific investor group such as accredited investors, thus cultivating a more tight-knit group of investors.
- Ask: “Why are investors interested?” Based on the audience you decided on in Tip #1, estimate what will be most relevant and valuable for them.
Watch RED Mountain’s video held during their campaign, where they asked investors just that.
We’re excited to see that you’re getting ready for your next funding round! Your next step will be the hardest: to START!