I saw an article in the Wall Street Journal on Monday Feb 3, titled, “How to Prepare for Crowdfunding,” which had a lot of the similar suggestions that I have given to TVC clients who would be crowdfunding entrants.
Before you go to a crowdfunding site, you should have made some decisions about your business model, business plan and marketing plan to address potential customers needs. For high tech startups, they should also have the patent applications on file before they say much about the technology to anyone.
I agree with the article that you should have some early backers helping you to do your pitch to excite the right group of potential investors for your project. Getting the early backers to talk up your startup will help you to get the launch you want and need to be successful. Keeping in touch with them about the progress of your startup always helps you and will give them a better feeling about your management team. Adding new materials to your web site pitch along the way is also important. This makes you seem more with it, up to date, and vibrant. These are all things that can make your potential investment more interesting to potential investors.
The article mentioned that 44 percent of the projects at Kickstarter reached their goals. The article concentrated on Kickstarter but the suggestions would also be applicable to the securities sales crowdfunding web sites. The article is worth your time to read it and think about your fund raising activities. I recommend it to you.