Disclosures

  • SeedInvest’s due diligence process is no guarantee of success or future results. All investors should carefully review each investment opportunity and cancel their subscription within the allotted time-frame if they do not feel comfortable making any specific investment based on their own DD. Learn more about due diligence on the SeedInvest Blog (https://www.seedinvest.com/blog/angel-investing/how-to-assess-an-investment) and our vetting process in our FAQs (https://intercom.help/seedinvest/en/).

  • SeedInvest’s selection criteria does not suggest higher quality investment opportunities nor does it imply that investors will generate positive returns in investment opportunities on SeedInvest. Learn more about due diligence on the SeedInvest Blog (https://www.seedinvest.com/blog/angel-investing/how-to-assess-an-investment) and our vetting process in our FAQs (https://intercom.help/seedinvest/en/).

  • Diversification is only across multiple early-stage investment opportunities within the asset class. There is no guarantee that this program will lead to a well-balanced portfolio of companies across industry types or stages across the asset class. In addition, enrolling in this program will not lead to diversification across your entire investment portfolio. In order to achieve diversification, we do not recommend you allocate more than 10% of your entire investment portfolio to alternative assets.

  • Testimonials may not be representative of the experience of others and are no guarantee of future performance or success. No individuals were compensated in exchange for their testimonials.

Fundraising Online - Raise Capital

 
 

It has become much simpler for entrepreneurs to raise capital online since the passage of the JOBS Act. As a result, a variety of capital raising, startup investing, and equity crowdfunding platforms have become available for founders and investors. Each platform has their own approach. Choosing a platform that knows the ingredients and recipe for creating a successful fundraising is critical. Partnering with a bad apple could lead to severe penalties, even including a temporary ban on capital raising. Aside from choosing a platform on which to sell your shares, as a founder, it’s important to demonstrate market demand for your product.

Creating a Campaign

Campaign Materials

Your profile on an online investment platform should include basic company information, a description of the industry that you operate in and a summary of the investment opportunity. There is also an opportunity to upload supporting documents, videos, and images.

Crowdfunding Video

For some investors, the video can be the most important part of a campaign because it gives the viewer a chance to meet your team and see your commitment to the business. There are a few key things to keep in mind when creating your video:

  • Talk directly to the camera. Investors want to see your commitment and excitement about the business. The most powerful way to convey this is to present directly to the camera.
  • The audio is the most important part of the video because investors need to be able to clearly hear what you are saying. Use good quality sound equipment and film in a quiet location.
  • Make sure to write a script in advance and to consult with the investment platform to make sure that there are no compliance issues with what you’re planning on saying.
  • Film the video on location in your offices so that investors can see where you work and get a feel for the business. Also try and show the product in use with your customers.

Launching on an Investment Platform

When you raise capital online, the platform may conduct due diligence before launching your round on the platform. During the due diligence process, you will be asked to provide supporting documents and additional information before you are able to use raise capital on the platform.

The common steps in the launching a capital raising process include:

  • Selection committee and initial review
  • Legal and confirmatory due diligence
  • Review of transaction documents
  • Detailed business due diligence
  • Investment committee

There are a lot of choices to make when you’re considering raising capital online. Smart entrepreneurs know how to spot any bad apples and to tell their story in a way that inspires investors.

 

This post was written by seedinvestedu on October 28, 2016

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