For companies looking to raise capital, equity based crowdfunding is becoming an increasingly popular option. While individual investors were previously limited to investing in larger, publicly traded companies, platforms like StartEngine have helped shatter this barrier to entry. Investors of any size are now able to put their money behind companies they believe in, allowing these companies to secure capital in addition to a more loyal customer base. But in order to truly reap the benefits of a crowdfunding raise, companies must reach beyond their current following and tap into the much larger audience of investment-minded individuals. That being said, let’s explore some of the best practices related to marketing a crowdfunding campaign, and why they are so crucial to implement.
Best Practices
In order to appeal to potential investors and convince them that a company is worth investing in, the messaging has to be spot on. This is no easy task–after all, it’s a big ask to have people invest their hard-earned money in an offering they’re likely hearing about for the first time. Luckily, there are a number of well-known approaches that marketers can take to inspire confidence in their company’s crowdfunding offering.
First and foremost, investors aren’t committing their money purely out of kindness–just like you, they are seeking financial gains. For them to put their capital behind your company, they need to believe that it is the next big thing, with great potential for growth. To convince them of this, provide proof that they’re backing a winner:
Prove Legitimacy : Has your company been awarded patents, or won awards for innovation? How about features in any reputable publications? All of the above can and should be mentioned in the pitch to investors, leaving them confident that they are backing a trustworthy brand.Highlight Potential: . Give your audience a reason to believe by highlighting the innovative nature of the offering. This could be a unique product, an eco-friendly approach, or anything that sets your company apart as a potential disruptor. If part of an emerging industry, it will help to provide projections on the future market size to ensure that viewers understand the untapped financial potential. Social Proof : Once a crowdfunding campaign has begun to garner investments, a very effective approach involving a concept known as “social proof” is unlocked. Simply put, people are far more confident engaging in activities that they’ve observed others doing. While most people may hesitate to be the first to invest in a brand new offering, they will likely feel more comfortable backing a campaign with a multitude of other investors. After all, if hundreds of other individuals felt confident investing their money, how risky can it be? For this reason, citing statistics such as the total number of investors or total amount raised can be a very potent strategy once the campaign has begun to gain traction. Limited Time Messaging: In the early stages of marketing a crowdfunding campaign, your offering will pique the interest of many investors who see the potential, but don’t feel any urgency to invest at that particular moment. As the campaign’s closing date approaches, it is possible to apply pressure through messaging such as “Two weeks left to invest”. Realizing that the opportunity to invest is running out, interested investors are much more likely to commit their money once and for all. Generative AI: Solutions like Omneky’s LLM allow users to instantly generate brand relevant messaging optimized for crowdfunding. Once plugged into an ad account, Omneky’s AI automatically generates new copy and visuals based on the ads that prove most effective. Employing an AI solution can expedite the process exponentially, ensuring that no time or budget are wasted on ineffective creative or copy.
Accelerate Your Crowdfunding Campaign with Omneky
Paid promotion is an essential component of any successful crowdfunding campaign. Marketers now have the opportunity to present their case before millions of potential investors, increasing the potential raise exponentially.
Omneky’s extensive crowdfunding experience, combined with our data-driven approach, makes us an optimal partner to help your campaign reach its full potential. With over $120 million in crowdfunding investments secured, we have a track record of excellence and an innovative approach that adapts to the constantly changing economic landscape. For more information, check out this case study of how we propelled Timeplast’s $5 million fundraise.
Schedule a demo to learn how you can unleash the power of AI-backed ads to maximize your crowdfunding round with Omneky.
