Equity crowdfunding is one the most popular and rewarding types of crowdfunding. In equity crowdfunding, people invest in an idea. The investment money is used as capital. And it turns the idea into a business. Since it is really profiting, it has gained quite a lot of popularity. But even if you get into it, how to get through it? How to make the best use of it? In a way that is profitable. In this article, you shall find answers to all these questions.
#Let your company reach the right level!
It is a misconception that equity crowdfunding is for the companies who have just started. But that is not the fact. It is beneficial for the companies who are already profitable or revenue generating. Making people invest in your company even before starting it? That can be a difficult one to achieve. Make sure your company has reached a point where it is trustworthy. Then only enter the market for crowdfunding. This will increase the chances of a successful campaign.
#Genuineness is the Key!
Remember, your investors and customers are the people you rely upon. You have to be genuine towards them. Misleading them will ultimately lead to your loss. When campaigning for equity crowdfunding, let your investors know about you. A structured and genuine plan, would attract more and more investors.
#Become eligible for tax relief
In UK, there are some special tax relief schemes meant for equity crowdfunding. Companies can avail tax relief of 30-75% of the investments made. But there are certain guideline regarding the eligibility. The company should have an assurance from HMRC. This assurance allows them to offer SEIS or EIS relief. It indicates that the company is eligible to do so w.r.t. the HMRC criteria.
#Work with the right platform
There are a lot of websites available today which can help you with equity crowdfunding. Different websites are made keeping different purposes in mind. They cater the need of different audiences. Before launching your campaign, you need to find out which is the right one for you. Some of them are meant for startups, some for small businesses. While some others provide options for both equity as well as reward based crowdfunding. Your choice of platform will have great impacts on your campaign. Be careful with your choice.
#Good network = Good equity crowdfunding
Building up a good social network can help you get the best out of equity crowdfunding. A good network would ensure your long-term success. This network would have your potential investors as well as potential customers. Begin with a blog or social media accounts. Stay active on them. Let people be familiar with you. This is to be done before you launch you campaign. Remember that!
Crowdfunding is an ocean. It has in it lots of goods and bads. Pluses and minuses. You have to filter them out. And for that, all you need is some good updated knowledge!
