As of today, the KingsCrowd team is 3 weeks into our Netcapital raise. To date, we have raised $59.4K from a mix of 45 investors and we continue to expand our pipeline of investors to sell out the round. As of writing, we have lined up about $15K more that should begin to trickle in over the next week or so.
It has been amazing to watch how our initial plan has changed and how it has stayed the same since going live. I continue to learn an incredible amount about what it takes to pull off a successful raise, and want to share with you how we are working to keep the momentum and pace of investment up.
In our latest education piece, written by Rob Burnett of Netcapital, he provides his thoughts on why you have to be more than just passionate to have a successful round of equity crowdfunding, and I genuinely couldn’t agree more.
Check out my thoughts on what I have learned and experienced over the past 3 weeks of raising capital from the crowd.
What I have learned as we progress through the raise…
Things will inherently not go to plan, but new avenues will arise:
Investors that I thought would be in the deal have fallen out, while investors that were completely off my radar have come into view asking to be a part of the deal that I never even considered speaking with.
Additionally, investors that I thought would put in small amounts have invested sizeable dollars, and others that I thought would invest heavily in the deal have decided to put in smaller dollar figures. When it comes time to execute, it is intriguing to see how different investors handle the situation.
Nonetheless, between those who fell out and those who came in, those who invested more and those who invested less, I am still on the path that I set out in terms of weekly milestones, which is awesome.
It’s all about follow up:
Getting investments, especially of a sizeable order requires more than one touchpoint, and can sometimes require 10 to 15 touch points with certain individuals. Though raising a round from the crowd might be your number one priority, it isn’t necessarily the priority of everyone of your potential investors.
Creating weekly calendar reminders to send touchpoints with milestones and succinct updates helps you to keep the pipeline warm and in touch with individuals who will eventually enter the deal at their own pace.
Mental milestones are key for investors:
It’s been great to see investors who perhaps were apprehensive at the beginning of the three weeks start to turn as they watch the investor dollars come into the deal. Setting milestones of being 50% by X date on the calendar and 75% by Y date, can help you take the round in chunks.
These milestones also act as natural touch points for follow up with potential investors that could help you reach the next milestone. The progress is a sign that you are planning and executing on your raise, which is a clear sign to investors that you are a strong founder worth investing in.
Be relentless and don’t slow down:
As I mentioned above the plan is going to change constantly, people will come in and out of the deal and you need to be prepped for peaks and valleys during this process. As far as I am concerned keep hitting the ground with investors as hard as you can until the max is achieved.
The absolute worst thing that can happen is you sell out the round, and some additional investors aren’t able to get into the deal. That is a good problem to have. But don’t sit back thinking your current funnel will have all the answers.
Opportunity is hidden everywhere, chase it:
One of my favorite parts of this process has been finding the small wins. For instance, a couple of people have written in at one point or another with small errors or blips on our website. I engaged these individuals and converted them into investors (think about it, these are people who took time to reach out because they genuinely care about our product).
I’ve also converted people who liked KingsCrowd on Twitter that I tweeted back at. And I have even converted individuals that invested in a deal I recommended by sending a follow up email or LinkedIn message that led to them investing in our deal too. Opportunity is abound. Big or small the dollars add up and do help you reach your goal.
With each passing day, I think about getting closer to our initial goal, but with that comes the need to start thinking and planning for the longer term. Sure this will give us a 6 to 9 month window to run, but how do we continue to grow and build from there.
This is why the relationship piece is so important. Starting to establish rapport and relationships with potential larger investors for down the road is key while you are on the raising trail. Yes we are looking for $1 to $10K checks now, but soon we will be looking for $50 to $250K checks. The reality is, it is much better to start forming relationships when you don’t need the capital then to start trying to get to know people when you are in need of capital.
With each step I begin to build a better sense of how we will execute on our vision and the ability to do so becomes a closer reality as the capital resources we need pool into the deal. I am excited by our progress, but not satisfied by any means. Stay focused and don’t be complacent. That is the key to a successful equity crowdfunding raise. Onward and upward!!
If you are interested in joining the journey, be sure to check out our offering page, and reach out with any questions you might have.
Cheers to the future,
Founder & CEO
Wall Street has Morningstar, S&P, and Bloomberg
The equity crowdfunding market has KingsCrowd.
About: Chris Lustrino
A Boston College Eagle for life, on a mission to democratize startup investing for all people at KingsCrowd, with a passion for Fintech, investing, social impact, doing well and doing good, and an avid runner, cyclist and writer.