A Step-by-Step Guide to Raising Capital from the Crowd
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Today, at 1:00 Eastern, I’ll be presenting my “Step-by-Step” Guide to Raising Capital from the Crowd” at our SuperCrowdHour webinar. This session will benefit anyone interested in doing a crowdfund offering or in any stage of conducting a campaign now.
You can watch the webinar right here using the YouTube video player above or join us on Zoom. We track attendance in Zoom and reward those who attend ten times with a $100 reimbursement for a crowdfund investment. Those participating via Zoom can also ask me questions! Join us there to claim your reward.
You likely know me primarily as the guy who writes this newsletter and who hosts the Superpowers for Good show. Did you know I owned and operated an SEC-registered, FINRA-member investment banking firm earlier in my career? There, I led efforts resulting in hundreds of millions of dollars in capital transactions, from venture raises to strategic acquisitions. I also served as the CFO of the third largest company on the Inc. 500 list and as the treasurer for a multinational public company. I’ve helped a lot of people raise a lot of Money.
In today’s SuperCrowdHour webinar, I’ll be presenting “A Step-by-Step Guide to Raising Capital from the Crowd.” This one-hour session will walk you through everything you need to know about securing funding via regulated investment crowdfunding. Whether you’re an entrepreneur, a small business owner, or someone looking to support social good, this guide is designed to help you navigate the complex but rewarding world of crowdfunding.
Introduction to Regulated Investment Crowdfunding
We’ll start by discussing the basics of regulated investment crowdfunding, which became widely accessible after the 2012 JOBS Act. As I’ll explain, this approach allows businesses to raise capital from both accredited and non-accredited investors under the supervision of the SEC and FINRA. I’ll highlight the significance of compliance and regulations and how they affect your campaign’s structure.
Step 1: Assessing Your Crowd
The first step in the journey is to assess your crowd—this means evaluating your Relationships with friends, family, customers, email newsletter subscribers, and social media followers. Today, I’ll show you how to tap into these networks and make your ask in a way that maximizes the chances of success. We’ll discuss practical ways to leverage these groups as part of your crowdfunding campaign.
Step 2: Defining Capital Requirements
Next, we’ll dive into defining your capital needs. In this segment, I’ll guide you through how to calculate your total budget and determine the net amount you’ll need to raise from the crowd after accounting for other funding sources. It’s essential to match your capital requirements to the capacity of your crowd. I’ll explain why aligning these two elements is key to setting realistic expectations and campaign goals.
Step 3: Choosing the Right Crowdfunding Platform
In this webinar, I’ll also help you navigate the selection process for a crowdfunding platform. There are dozens of options, from Crowdfund Main Street to SMBX, Honeycomb Credit, Wefunder, and more. I’ll break down the strengths and features of different platforms to help you determine which one fits your specific campaign. I’ll also explain the critical factors to consider, such as platform fees, audience demographics, and the type of support you’ll need along the way.
Step 4: Crafting the Perfect Offering
Now that you know where to launch, I’ll teach you how to craft a compelling offer. We’ll go over how to balance investor expectations with your business goals. I’ll show you how to frame your story to appeal not just to the head but also to the heart—investors are more likely to support businesses with a strong narrative and clear social impact. Plus, we’ll cover legal requirements, and I’ll advise you to work with a lawyer to ensure your offering is bulletproof.
Step 5: Building a Marketing Plan
Once your offer is set, it’s time to market your campaign. In today’s session, I’ll lay out a comprehensive marketing plan that includes one-on-one outreach, newsletters, bulk email strategies, social media, and public relations. I’ll show you how to build momentum before you even launch by fostering a community around your campaign. We’ll discuss why starting early with your marketing efforts is a game-changer.
Step 6: Financial Statement Requirements
Financial transparency is crucial, and in this webinar, I’ll explain the varying requirements based on how much capital you intend to raise. I’ll break down the different levels of financial reporting, from GAAP-certified statements to reviewed financials and audits. Understanding these requirements will help you prepare adequately and ensure trust with your potential investors.
Step 7: Filing Form C with the SEC
In the session, I’ll guide you through the process of filing Form C with the SEC, which is necessary to kick off a regulated crowdfunding campaign. This form includes your business plan, risk disclosures, and other essential details. I’ll provide practical tips to streamline this process, including how AI tools like ChatGPT can assist you in compiling your required documents.
Step 8: Launching the Campaign
Once your campaign is ready, it’s time to launch! In the SuperCrowdHour today, I’ll walk you through strategies for setting a low minimum but high target to attract both small and larger investors. We’ll discuss why lining up big investors beforehand can set your campaign up for success and how to effectively execute your marketing plan during the launch phase.
Step 9: Raising the Funds
Raising money is the heart of your campaign, and today, I’ll provide actionable advice on securing meetings with potential investors and closing deals. I’ll share tips on using one-on-one contacts, leveraging social media to keep your campaign top-of-mind, and creating a sense of urgency with deadlines. The key here is persistence and strategy, which I’ll explore in detail.
Step 10: Closing and Post-Campaign
In the final part of today’s webinar, I’ll discuss how to successfully close your campaign and what comes next. After reaching the minimum funding target, a rolling close can provide early access to funds, and I’ll explain how this works. Additionally, I’ll cover reporting requirements for post-campaign compliance, which can last from one to three years, depending on the amount raised.
Conclusion
By the end of this webinar, you’ll have a comprehensive understanding of how to raise capital from the crowd, step by step. Whether you’re launching today or in the future, you’ll be well-prepared to execute a successful crowdfunding campaign, build community support, and stay compliant with regulations. Join me as we dive into these strategies and take your business or project to the next level through crowdfunding!
Max-Impact Members
The following Max-Impact Members provide valuable financial support to keep us operating:
Carol Fineagan, Nicholas and Company | Lory Moore, Lory Moore Law | Marcia Brinton, High Desert Gear | Ralf Mandt, Next Pitch | Sheryle Gilihan, CauseLabs | Add Your Name Here
Upcoming SuperCrowd Event Calendar
If a location is not noted, the events below are virtual.
Impact Cherub Club Meeting hosted by The Super Crowd, Inc., a public benefit corporation, on September 17, 2024, at 1:00 PM Eastern. Each month, the Club meets to review new offerings for investment consideration and to conduct due diligence on previously screened deals. To join the Impact Cherub Club, become an Impact Member of the SuperCrowd.
SuperCrowdHour, September 18, 2024, at 1:00 PM Eastern. Each month, we host a value-laden webinar for aspiring impact investors or social entrepreneurs. At September’s webinar, Devin Thorpe will provide an in-depth answer to the question, “Can I Beat the Stock Market with Impact Crowdfund Investments?” Free to attend.
Superpowers for Good Live Pitch, September 25, 2024. The application window is open now. Apply today! The Live Pitch will stream simultaneously to the e360tv network, Facebook, Linkedin, YouTube and Superpowers for Good. We hope for an audience of thousands! Don’t miss this opportunity to pitch your regulated investment crowdfunding campaign to the SuperCrowd!
Recently, we created an AI GPT to help you learn more about The Super Crowd, Inc., a public benefit corporation, and our upcoming events. Click here to try it.
Community Event Calendar
Successful Funding with Karl Dakin, Tuesdays at 10:00 AM ET – Click on Events
Main Street Skowhegan and NC3 Entrepreneur Finance Workshop Series, September 17 – November 19, 2023.
Crowdfunding Professional Association, Summit in DC, October 22-23
If you would like to submit an event for us to share with the 8,000+ members of the SuperCrowd, click here.
Originally Published on https://www.superpowers4good.com/
