Is equity crowdfunding for me?

Administrator

10:45 AM on October 10, 2022

Equity crowdfunding may not be for everyone looking to generate funding for their ventures.

A lot of planning and preparation is required before launching a fundraising campaign, and a lot more work goes into managing the promotion of a campaign.

You may find that accessing debt from banks or lending institutions may be more appropriate for your business after all.

If your venture has a high social impact factor or is part of a priority government policy (like agri-agra funding), you may want to explore grants and government incentives for funding instead.

If neither of these apply to you, or you want to check out the equity fundraising route anyway, here are some things to consider:

What is your company or venture's fundraising strategy and requirements? Does it match your current business stage?
How soon do you need capital and what are your other funding-related timelines?
How will you use the funds you raise to grow and expand your company? These plans need to be outlined and presented to potential investors.
How will you value your company or venture to potential investors? Put yourself in an investor's shoes: "If I put my hard-earned money into this company, what kind of returns on investment will I recieve?"

Unlike debt or loans, equity fundraising doesn't typically entail interest or principal payments. However, you do share the revenue and success of your company with all your other shareholders because they also share in the risk of investing with you.

For better or worse, equity owners can be like partners in your business and are counting on you to succeed by seizing opportunities and managing the challenges.

Are you willing to take on this responsibility and obligation? If you think you've got what it takes, consider fundraising with Round One.