You will learn:

– The ins and outs of equity crowdfunding
– How should your campaign page look
– Which investors should you be targeting
– How to apply and what platform should you choose to run your campaign
– How many applicants get turned away from equity crowdfunding platforms
– What should you offer as rewards for your equity crowdfunding campaign
– Best resource, best tip and biggest mistake entrepreneurs make when it comes to equity crowdfunding

Who are we interviewing?

Nathan Rose originally had a background in finance and then spent 18 months traveling around the world learning and studying Equity-based crowdfunding. Then Nathan started a consulting business that assists with equity crowdfunding for startups. You can find more at AssembleAdvisory.com

Show notes:

– More business can be equity crowdfunded verse reward crowdfunded
– Equity Crowdfunding isn’t necessarily for your local brick and mortar shop
– An example of a company that could benefit from equity crowdfunding. (A ton of business can be equity crowdfunded) Last business Nathan worked with was a medical device that scans fluid before entering into a human body who was able to raise $800K
– Most equity crowdfunding platforms are country by country due to each countries individual regulations
– Equity Crowdfunding Platforms (country by country)
—— (USA) WeFunder.com
—— (USA) Republic
—— (CAN) FrontFundr.com
—— (UK) SyndicateRoom.com
—— (UK) Seedrs.com
—— (UK) CrowdCube.com
—— (NZ) SnowballEffect.co.nz
—— (NZ) Equities.com
– Equity Crowdfunding has a stricter screening process than Kickstarter / Indiegogo
– Less than 10% of companies that apply for an equity platform will actually make it to the public
– The application process for equity crowdfunding can be intense
– Do you need to bring your own investors to an equity crowdfunding platform?
—— If you bring your own investors and get momentum going early, then there is a good chance more people will find you and contribute
– Equity crowdfunding campaigns look a lot like Kickstarter / Indiegogo campaigns. Videos, about the team, etc… Only difference is shares instead of the product
– Some equity crowdfunding campaign also offers rewards in addition to equity
– Accredited Investor – If your net worth is in a certain category or your income is above a certain amount you can invest in any company of your choosing
– Most equity crowdfunding campaigns also go for around 30-60 days the same as a Kickstarter or Indiegogo campaign
– According to Nathan you should keep at least half your equity if planning an equity crowdfunding campaign
– The usual percentage is given away in an equity crowdfunding campaign. 10% – 30%
– Conversion rates on traffic to your equity crowdfunding page, not as important as it is in rewards-based crowdfunding
CrowdfundInsider.com is a great resource for the deals being done, and all information you need on equity crowdfunding
– Just like Kickstarter & Indiegogo differ, same applies to equity crowdfunding platforms. Be sure to research each platform because they do have major differences
– 1 Major drawback for equity crowdfunding. When you go directly to a VC firm and they say no.. Nobody knows about it. But your equity crowdfunding campaign can be a public failure and everyone will know about it.

QUESTION: Best tip for anyone listening hoping to launch an equity crowdfunding campaign?

Nathan: Equity crowdfunding will allow you to raise more money typically. Which means you will have shareholders around for a long time. Which can be a good thing and a bad thing. So if you have been running your own business as your own thing with no shareholders up until now… All the sudden you will have a bunch of new responsibility to your new shareholders. They’re going to be pushing for growth. And I think some founders won’t enjoy that, but if you’re really passionate about growing your business to as big as possible having shareholders onboard can be, a great way to hold your feet to the fire and get you where you’re going really quickly.

QUESTION: What is the biggest mistake you see entrepreneurs make when they enter an equity crowdfunding campaign?

Nathan: Underestimating how much time it’s going to take. They think they’re going to get the money next week. But even the offering period is longer than a week. So start at when the money is going to arrive in your bank account. Count back 30-60 days then you need to build in a 2-3 month preparation period into that too. For sure, start well before you think you actually need the money.

Contact Nathan

Nathan@AssembleAdvisory.com

Get your Copy of Nathan’s book “Equity Crowdfunding” for free November 1st on Amazon! Click the image below!

nathan-rose-book