- August 8, 2014
- Posted by: John Fischer
- Category: Accredited Investors
Regulation D Accredited Investors Can Help With Your Crowdfunding Campaign
If you have launched a crowdfunding campaign, Regulation D Accredited Investors can help to give you the capital you need to meet your goals. The “crowd” is an amazing thing, primarily due to the momentum it gives you going forward with your company. All of the people that participate in your crowdfunding campaign can turn into lifelong customers and fans that help to spread the word about your company organically. Typically, these individuals give money in exchange for a reward, prize, or product that you are creating. Since they don’t get equity, the dollar amounts are typically low, so it is all about quantity.
Regulation D Accredited Investors can help to bridge the gap between the money you raise from the crowd and what you need to complete your capital raise.
Many investors want to see a level of acceptance from consumers before investing in a company. This gives them a sense of assurance that you will be successful, and that the only thing that may stand in your way is a lack of capital. Angel investors, for example, will often ask how many customers you currently have and what stage your company is in. When you have backers, you have built in customers, which can help to jump start the company’s official launch. This is an advantage for raising money and an advantage for ensuring that your company can sustain once you do.
Reach Regulation D Accredited Investors by purchasing a leads list from www.accreditedinvestorleads.com. This list can be sorted by demographics and location to help you reach a targeted group of investors in your local area. If your company has a national reach, you can buy a large list of investors throughout the country that may be interested in participating. A crowdfunding campaign does not require a private placement since you are not actually giving away equity. Raising money from accredited investors does. Before you start calling you need to have your private placement and executive summary finalized so that you can have a detailed conversation with investors.
When creating your financial projections, let them know how much capital you have been able to raise through crowdfunding and how many unique backers or customers that represents. Explain to investors how their investment can help take the company to the next level so that you can accomplish financial success for the company and generate a return for them. Painting a picture is an important step and fortunately, your crowdfunding campaign will have already given you a proof of concept.
Remember that Regulation D Accredited Investors are an elite group of sophisticated individuals. They typically are well educated and make significantly more money than the general population. Expect them to ask hard questions and wants specific data. Be prepared to make your best sales pitch and use your crowdfunding campaign to demonstrate the potential of your company.