5 Steps to a Successful Crowdfunding Campaign

Equity Funding

Deciding to embark on an equity crowdfunding round is a big decision for any founder. A successful campaign requires a lot of planning before launch and an equal amount of work during the raise.

Before founders submit a campaign they should ensure that these five elements are well prepared to maximise their chances of success.

1)Know what you want

Before promoting a crowdfunding campaign, it is essential that founders are confident with what it is they are offering and willing to give in exchange for investment. The valuation of the business is one of the most crucial decisions a founder must make, as it will greatly impact the s...

Read more »

5 Steps to a Successful Crowdfunding Campaign

Equity Funding

Deciding to embark on an equity crowdfunding round is a big decision for any founder. A successful campaign requires a lot of planning before launch and an equal amount of work during the raise.

Before founders submit a campaign they should ensure that these five elements are well prepared to maximise their chances of success.

1)Know what you want

Before promoting a crowdfunding campaign, it is essential that founders are confident with what it is they are offering and willing to give in exchange for investment. The valuation of the business is one of the most crucial decisions a founder must make, as it will greatly impact the succe...

Read more »

Why Should You Include A Video In Your Crowdfunding Campaign?

Equity Funding

By Kirsten Buchanan, Squareknot

Your business plan has been perfected, your pitch rehearsed until it’s spot on and your rewards carefully considered – but what else can you do to make your campaign complete?

A Video.

A crowdfunding video can make a huge difference to a campaign and shouldn’t be left out. It’s a different medium to engage your audience, detail your project and generally can lead to more funding by appealing to a broader range of people.

Videos Allow Backers To Connect With You

By appearing in the video you allow people to connect with the face behind t...

Read more »

Founder Beware: The Risks of Seeking Investment via Crowdfunding

Equity Funding

By Richard Goold & Richard Ellis

Introduction

Crowdfunding looks like the entrepreneur's best friend.

Seeking investment used to involve trawling banks, angels and VCs. This was a gruelling process. It involved thorough preparation, challenging questions and, more often than not, painful rejection. With crowdfunding you can put a pitch on a platform and wait for the cash to start rolling in. Happy days.

Importantly valuations also appear to be generous at present – in a low interest rate environment investors are keen to find a good return on their cash....

Read more »

Chapel Down

Equity Funding

In September 2014, Chapel Down kickstarted an evolution of the equity capital markets by becoming the first publicly-listed company to offer its shares through equity crowdfunding. The company raised more than £3.95m investment from a combination of an institutional and high net worth investor placing, alongside the crowd, with all 1,463 parties participating on the exact same terms through Seedrs.

More efficient fundraising

Equity crowdfunding is an excitingly innovative approach to raising growth capital, especially when most companies at their stage, with their positive financial traction, traditionally reach out to institutions and large individual investors in The City.

Raising investment through traditional City brok...

Read more »

Crowdcube Catches up with Successfully Funded LOVESPACE

Equity Funding

LOVESPACE raised investment on Crowdcube in July 2014, and the equity crowdfunding platform caught up with them a year later to find out how they are getting on. 

The founder, Brett Akker formally co-founded Streetcar which was sold to ZipCar for £32m in 2010. Brett then established LOVESPACE which was the first storage-by-box company in the UK, in 2011. The company turned to the crowd to raise funds to move to a larger warehouse, develop and execute a marketing plan and acquire a fleet of vans and drivers to complement its courier network.

The company raised £1,562,960 – overfunding to 260% thanks to ...

Read more »

Seedrs Partners With Major European Bank

Equity Funding

By AltFi.com – for the original article, click here

Seedrs has partnered up with ING in order to roll out its equity crowdfunding services in Belgium and Luxembourg.

The purpose of the partnership is, primarily, to provide a “fast-track service” for local businesses wishing to equity crowdfund on the Seedrs platform. The second objective is to raise awareness of equity crowdfunding in the business communities of the two countries.

The new relationship appears to have taken the form of a referrals scheme, with ING directing the businesses which it believes may be suitable for equity funding towards the Seedrs platform. These referred busine...

Read more »

A Crowdfunding Guide by a Crowdfunder!

Equity Funding

What could be more beneficial to a small business owner looking to raise finance through crowdfunding than a guide put together by an experienced crowdfunder?

Well here we have it ‘A Crowdfunding Guide from a Crowdfunder’. Togethera has provided AltFi Funding with a text format of their recently published crowdfunding playbook.

The post below was written after raising £230,000 for Togethera, the private sharing app for your family and loved ones, on Crowdcube in the UK. It’s specific to equity crowdfunding, i.e. selling shares in your company, as opposed to raising money from a group of supporters for your project on Kickstarter or Indiegogo. A...

Read more »

Why Crowdfunding?

Equity Funding

Crowdfunding is quickly becoming a capital raisers first choice, rather than the alternative method of finance. As such, some very interesting and high potential companies have turned to online portals to raise debt and equity to fund their business. A stigma formerly existed whereby some investors viewed those companies raising funds via crowdfunding as adversely selected, effectively meaning they had failed through traditional sources - but this simply is not the case. Business owners see a crowdfunding campaign as more than just access to capital and they are leveraging the ancillary benefits of a good campaign. A well planned campaign can bring significant PR benefits to the business and enhance brand equity. Furthermor...

Read more »

SyndicateRoom Introduces “Lift Round”

Equity Funding

By AltFi – for the original article, click here

SyndicateRoom has introduced a new term into the crowdfunding lexicon.

The platform has just closed a “Lift Round” – which essentially means a fundraising campaign that has already reached its minimum target prior to having been listed on the site. More specifically, a Lift Round involves a fundraise that has hit its funding target thanks to significant demand from an angel syndicate, or from other professional investors. Given SyndicateRoom’s “Angel-led” investment model, such campaigns may still be listed on the platform – giving retail investors the chance to pile in on a round that is guaranteed...

Read more »

£100 Million Successfully Invested on Crowdcube

Equity Funding

By AltFi Data – for the original article, click here

This week Crowdcube became the first UK investment crowdfunding platform to surpass the £100m volume milestone. Since Crowdcube launched in mid 2011 it has helped 285 businesses to successfully raise finance on the platform from some of its 200,000 registered users. Over half of this amount has been financed in the eight months of this year. Crowdcube’s dominance of the UK equity crowdfunding volumes is underlined by its market share. AltFi Data estimates that Crowdcube’s market share is just under 50% this year, making it by far and away the biggest equity crowdfunder in terms ...

Read more »

Crowdcube Build on Transparency

Equity Funding

Investors on Crowdcube will now be able to assess the bond investment opportunities that are listed on the site.

The crowdfunding platform has revealed that it will be presenting investors with output from Moody’s Analytics’ private company risk model. Square Pie and Vanarma are the first to display the new Probability of Default (POD) figure that represents a probability that the business issuing the mini-bond will default on any existing credit obligations.

So far in 2015 mini-bond investors through Crowdcube have already received around £300,000 in returns from interest payments, which are typically paid every six months.

So what does this actually mean fo...

Read more »

PR and Crowdfunding: It’s Time You Met

Equity Funding

By Kirsten Buchanan, Squareknot

PR can be a hugely important part of a Crowdfunding campaign, so perhaps a little introduction is needed. 

The definition of PR can generally be understood as – the practice of managing the spread of information between an individual or an organisation and the public. It’s all about getting the word out there.

PR is all about engaging, interacting and communicating - things that are vital when it comes to crowdfunding. When Crowdfunding you are actually asking people to fund a vision - you are selling them an idea and asking them to fund a concept. This is where word-of-mouth becomes essential, going beyond simply ...

Read more »

LetPal

Equity Funding

LetPal have successfully raised their crowdfunding target of £70,000 through Squareknot, with 11.67% equity offered.

The LetPal solution for private landlords is a full suite of competitively priced on-line services, from which landlords can select and pay for only those they require. LetPal now intend on being the dominant player in the Scottish Private Rented Sector (“PRS”) and then expanding into the rest of the UK.

The scale of the market and opportunity is huge. There are more than 5 million homes in the UK PRS, of which about 380,000 are in Scotland. The sector has grown by an average of over 6% per year in the last 10 years, and is expected to continue to grow. The % of homes that are rented privately has increased from 11% in 2004 to 17...

Read more »

Top 5 Crowdfunding Tips from an Experienced SME

Equity Funding

Cornerstone, a subscription service for high quality razors, recently raised over £890,000 on crowdfunding platform Crowdcube, after attracting investment from 241 people. Following their successful raise, we asked Oliver Bridge, founder of Cornerstone to give us his top tips for crowdfunding success.

Top 5 tips for launching a successful crowdfunding round

1. Offer interesting rewards - we offered gold-plated razor handles, a wet shave in a hot air balloon and steak and cocktails for people investing particularly large amounts! 2. Spend time and money on a great pitch video - we hired a professional agency to help us script ... Read more »

Enval

Equity Funding

The Story

A successful raise of £985,950 will support Enval as the company ramps its commercial scale plant up to full capacity to extract valuable materials from plastic aluminium laminates.

Enval’s story began at the University of Cambridge when a bacon roll was microwaved for so long that it turned into a glowing mass of carbon. This sparked further experiments, resulting in the eventual formation of Enval: a solution that extracts 100% of usable aluminium (as well as fuel and other valuable materials) from the previously un-recyclable 160,000 tonnes of laminate packaging which enters the UK marketplace each year and inevitably ends up in landfill.

This process is based on microwave induced pyrolysis, which heats waste laminates (such a...

Read more »

Fertility focus

Equity Funding

The Story

With its second successful SyndicateRoom raise overfunded to £360,250, Fertility Focus will get its next generation product into the market and continue its excellent record of helping women conceive and understand their bodies’ reproductive patterns.

Fertility Focus was formed in 2005 to help couples get pregnant more quickly and at a lower cost. It’s estimated that 24 million women worldwide seek online advice for fertility problems, and 30% of all women have fertility issues that go unnoticed by doctors. So Fertility Focus created OvuSense: a fertility monitor to help these women manage their cycles and detect if they have ovulatory issues. Unlike its competitors, OvuSense works in real time, and is capab...

Read more »

Bactest

Equity Funding

The Story

Bactest’s second raise overfunded to £301,760, enabling the company to accelerate the commercialisation of its two products, Shepherd and Speedy Breedy, which are designed to turn microbial activity into data.

Described by The Telegraph as ‘a little purple contraption, no bigger than an old-fashioned radio’, Speedy Breedy tests for contamination in hours, saving time by removing the need to send tests off to a laboratory. Its younger sibling, Shepherd, gives water processing plant operators accurate and timely information that enables them to better manage aeration, cut energy costs and reduce their carbon footprint. This product is currently deployed and working at Anglian Water. Both are out of prototype stage and generating reve...

Read more »

Online Jeweller turns to Crowdfunding

Equity Funding

One of the UK’s top jewellers, Vashi, has launched a campaign the crowdfunding platform VentureFounders.

The jeweller is looking to raise £850,000 in this Enterprise Investment Scheme round with a pre-money valuation of £6 million. Over half has already been raised on the platform by keen investors.

Through the money raised, Vashi is looking to further grow its sales channels beyond eCommerce by opening physical stores in which customers can browse and buy its products.

Vashi Dominguez, founder of VASHI, commented on the campaign:

“Since our launch in 2007 the company has gone from strength to strength, rapidly building up bran...

Read more »

Four Deals to End on Syndicate Room

Equity Funding

It is a big week over at crowdfunding platform SyndicateRoom with four campaigns set to complete in the next four days.

Two of the campaigns have already reached their funding target with one only 3% away. The fourth campaign, Frugl, looks unlikely to reach its target as only 52% has been funded with four days to go.

To see if your business have any similarities with any of these other campaigns please follow the links below:

Bactest

Bactest’s technology turns microbial activity into data, offering multiple industry applications. The company overfunded to twice its original goal in its first round on SyndicateRoom, and has since won th...

Read more »