2019 heralds a new era in the world of fundraising for start-up and scaleups. Advances in digital technology have transformed the process and it is now possible to conduct the whole enterprise online. Here we give you our top ten tips as to how get the best out of digital when seeking equity finance online:
1 The legals
All start-ups and scaleups will need legal advice and sites such as Seed Legals and Linkilaw do just that. Now you can get all the help you need – online – to get your investment ready and complete every step of your funding round: from building and negotiating your Term Sheet and Articles, to the Shareholder’s Agreements and tax incentive schemes (such as EIS) for your investors.
Digital has handed back control to the fundraisers. Envestry for Scaleups has made it possible for you to have your own, fully personalised and FCA regulated crowdfunding platform launched in under 24 hours. Campaigns can be of unlimited length, investors can register and make pledges, there are secure data rooms and investor relations portals, all of which allow you to retain 100% of your investor data.
3 PR distribution
Media coverage is vital if you want to get your story out to a wider audience. Sites such as PRmax and JournoLink make it easy to access the relevant journalists and bloggers; they’ll also provide you with the tools to pinpoint the best editorial opportunities and monitor and analyse your success.
4 Campaign planning
Trello provides the ultimate organisational software needed to get any fundraising campaign started. By using boards, lists and cards, you can systematise and prioritise what needs to get done in a visual and flexible way, with your fundraising team – and all your devices – perfectly in sync.
5 Video Surveys
Investor feedback is crucial when raising finance; software to create a survey with specific questions is a great way to collate this information. Verbate will help craft the best structure as to how to ask the questions and then interpret and analyse the results – all through video.
If you want people to invest in you, they’ve got to notice you. If you’re marketing digitally, you’ll need to make sure your social media banner or emails stand out and engage; the best way to do this is with something that is visually striking. Sites – such as Canva – enable you to become your very own graphic-designer and promote your brand in a modern and professional way.
7 Contacting potential investors
LinkedIn is the go-to social site when fundraising and looking for investors. You can research, target and contact professional investors as well as sharing marketing posts, videos and anything else you think will interest those who may want to be a part of your network and business.
8 Cap tables
A capitalisation table provides an analysis of a company’s percentages of ownership, equity dilution, and value of equity in each round of investment by founders, investors and other owners. They are essential for a start-up and will need to be changed with the natural evolution of a business’ growth – no mean feat. Software providers – such as Capterra – provide the digital tools to simplify the process.
9 Investor relations
Those experienced in seeking equity investment know that it’s vital to look after your investors – particularly as you’ll undoubtedly have to ask them for more money in later funding rounds. The Envestry for scaleups platform has a built-in investor relations portal, that includes a secure data room to host your company documents, a Q&A facility and everything you need to keep your investors up to date and feeling loved.
10 Email marketing
Email marketing is important for building relationships with prospects, leads and customers, because it gives you an opportunity to speak directly to them at their convenience. MailChimp is an email marketing tool that allows you to send emails to hundreds – or even thousands – of recipients all at once, as well as creating and managing mailing lists and newsletters, automating your email campaigns and collecting leads.
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