How to Run a Successful Crowdfunding Campaign

If you are an Israeli start-up looking to raise seed funding or a target amount to help you reach your next milestone, then ExitValley’s equity crowdfunding platform is a great option to consider. Our platform was founded by a team of hi-tech professionals, including experienced entrepreneurs and seasoned investors. Between us, we have founded 6 incorporated companies, made 8 exits, reached IPO and made over 20 investments. Many of ExitValley’s founding members have been in your shoes, so we know exactly what it takes to help you reach your goal.

In recent years, crowdsourcing platforms have shifted power to the people. Just as eBay and Amazon transformed our online shopping experience, so are equity crowdfunding platforms revolutionizing the way in which start-ups obtain funding. Entrepreneurs have greater control over their fundraising process as they no longer need to rely on VC’s and Angel Investors. Furthermore, the general public can invest simply and easily under the platform ‘umbrella’. That said, with more entrepreneurs turning to online methods for fundraising, there is also a lot more competition. It’s not enough to merely open a campaign! Crowdfunding success requires a healthy dose of diligence, creativity and elbow grease.

Earlier this month, we took part in a special event that introduced budding entrepreneurs to the world of crowdfunding. The successful evening which took place in the heart of Tel Aviv (the start-up capital of the Middle East), was a collaboration between Fusion Labs, Wize and ExitValley. Fusion Labs is a unique accelerator for Israeli start-ups that are based in Los Angeles and Wize is a movement, dedicated to the formation of a new culture of night-life in Israel, hosting events that bring interesting people and content together over a glass of beer or wine. The panel included esteemed Israeli entrepreneurs, including Guy Katsovich, Adir Zimerman and our very own Yaniv Shiryon, CEO & Co-founder of ExitValley. Yaniv provided some valuable information regarding what it takes to create a successful crowdfunding campaign. In case you missed it, here are his top tips:

Content is King – There is so much content being blasted 24/7, therefore if you want your campaign to get noticed, it is imperative that yours stands out! A single image or video can make or break your fundraising effort.  Make sure yours is slick, professional and engaging. You want to catch the public’s attention and be convincing enough that they would consider investing their hard-earned money in your campaign! In this day in age, there are plenty of marketing tools available that don’t necessarily need to break the bank. These include social media, video and outsourcing specialists. Do not underestimate the power of good content!

Adequate Preparation – As Benjamin Franklyn once said, “by failing to prepare, you are preparing to fail”. It is a given, that by the time you launch your fundraising campaign you know your product inside and out, plus you have figured out your target market and customer base. You should also know how much you intend to raise, as well as what you plan to do with the funds. Be prepared to answer any type of question from any interested party, including investors, platform provider, press, curious public, etc. Above all, make sure you have a great pitch, including shortened and lengthier versions. Using a tried and tested formula, the ExitValley platform has been designed to help you organize your pitch and present your company information in a manner that will yield the best possible campaign feedback and results.

Harness the ‘Ripple Effect’ – Investors like to see traction. They are less likely to invest in a start-up that has little or no backing. Therefore, your fundraising efforts should begin with close circles such as friends and family who will invest in you, no matter what. You can then approach ExitValley’s established investor community who are accustomed to dealing with early stage companies, along with communities that are connected to your product or idea. Finally, when your campaign is well on its way, you can target the general public who will be intrigued by your popularity (as per the success % meter on your campaign profile).

Adopt a Winning Attitude – When raising funds, you will encounter many challenges, plus you will be required to engage the hearts and minds of potential investors. Remember, there will be many other entrepreneurs in the same position as you. A fundraising campaign is, in a sense, like a talent contest. You need to prove to investors that you are the best and that you will accomplish great things with their funds. This can only occur if you behave and feel like a winner… Believe in yourself and your venture, and others are more likely to follow suit.

By the Book and Transparent – It is worth keeping in mind that your investors will also be shareholders and partners in your company. Thus, before bringing anyone new to the table, you want to make sure that your ‘house’ is in order. Be ready with a detailed business plan that highlights your company’s past and present accomplishments, as well as future projections. All legal and accounting documentation should also be in order. Transparency builds trust and trust is an essential ingredient for any partnership. If something does not sit right with potential investors, they will not hesitate to walk away. To assist with this process, ExitValley provides entrepreneurs with ongoing business support and legal infrastructure that has been assembled in conjunction with Naschitz, Brandes, Amir & Co., one of the leading law firms in the start-up arena.

When it comes to raising funds for your start-up, there’s always more to learn! You will discover plenty more valuable information on ExitValley’s website. To learn more about fundraising via our equity crowdfunding platform click here. If you require more specific information, you can also contact us directly. At ExitValley we enjoy hearing from entrepreneurs and learning about exciting new ventures and ideas.