Historically, for an equity crowdfunding campaign to succeed, the company needs to work hard to reach out to their community digitally and physically to notify potential investors. Companies should aim to bring 100% of the investors in their campaign from their existing network of supporters, with any investors coming from those already on the Equivesto platform seen as a bonus.
Equivesto highly recommends that you work with a marketing firm that specializes in equity crowdfunding marketing to support the campaign. Successful campaigns typically budget between 10-20% of the target raise amount for marketing.
Equivesto will provide support and education around different ways to expand and notify your digital community, both before and during the raise. The time you spend considering equity crowdfunding as a funding option is a great opportunity to increase your brand awareness and do some marketing of your business.
Typically, the average investment in an equity crowdfunding campaign is between CAD $500-$700. With that in mind, businesses looking to raise capital can estimate the number of investors their campaign might require. A raise of CAD $500,000 would potentially require 1,000 investors, each investing $500 to have a successful campaign.
Use the time before your campaign to grow your online following, email list, and community. We recommend spending 1-2 months prior to the campaign doing pre-campaign marketing.
If you decide to raise with Equivesto, we will work closely with you to provide further marketing coaching and advice. To learn more in the mean time, visit: https://equivesto.com/campaign.