When people hear “crowdfunding,” we usually think of Kickstarter or Indiegogo. While both of those sites have done a great job popularizing this new kind of fundraising, they’re definitely Crowdfunding Version 1.0.
These days, any startup looking to raise not only initial funds but actual Series A rounds are turning to V.2.0 sites like truCrowd, which allows entrepreneurs to raise not only based on “rewards” but also the more traditional investment for equity.
Looking for funding? It’s gonna take some work first.
According to truCrowd, entrepreneurs need to make sure their company is “investment ready” before raising their first round. They recommend you start building social capital as soon as possible by strengthening your social media network. Social media will be the most active agent of your crowdfunding campaign.
You will also need to assess and document the current state of your company’s finances. Ultimately, figure out exactly what you’re worth. The current state of the company can be assessed either by human or cloud-based valuation firms. As of today, truCrowd has partnerships with both types of service providers: Zack’s Research (human-based) and Equidam (cloud-based). If you choose to work with truCrowd, they will assess the value of your company which will indirectly assign dollar value to shares. Based on their assessment, you will know how many shares to put on the table for what percentage of the company.
And you’re good to go!
Well, you’re almost there. Now you have to start preparing your crowdfunding campaign. If you haven’t already created a business plan, that’s step numero uno. You’ll also need to make sure your sales pitch is pitch perfect because it help you with the next step: filling out your profile.
Your profile is the key to any great crowdfunding project, whether you’re doing a traditional rewards-based raise or an equity raise. You will need to create a compelling company profile and it is recommended to create an interesting video to pair with excellent copy. If you don’t feel up to the task, there are plenty of experts online who are willing to help – for a fee, of course.
Once you’ve got all of your bases covered, truCrowd will host your raise and help connect you with the type of investors who are interested in companies like yours. They provide all the necessary information regarding to what needs to be done (step by step – on the website), additional info about the industry and tips and tactics on their blog to support the user experience. truCrowd is aiming to be the #1 site for startups seeking equity crowdfunding and connecting with non-accredited investors. Sounds like a team you probably want to be a part of.