LONDON, UNITED KINGDOM, February 15, 2023 /EINPresswire.com/ -- Preparation and planning are the key to equity crowdfunding marketing success

Benjamin Franklin, one of America’s founding fathers, once famously said “failure to prepare is preparing to fail”.
He wouldn’t have known it at the time, but his words are perhaps the most essential advice for anyone looking to capitalise in the booming popularity of equity crowdfunding.

As the method of raising capital using equity crowdfunding exemptions using Reg CF or Reg A+ grows in popularity, still around half of all offerings fail to secure the target financial figure they set out to achieve.

The question is why?

Of course, having a sound and innovative business proposition is essential. But in a crowded marketplace, where everyone is after every dollar of investment – and there are a lot of great start-ups out there - just how do you stand out from the crowd?

Explains Paul Stannard, chairman of international marketing, communications and research data company the World Digital Foundation: “We have worked extensively with companies launching equity crowdfunding campaigns and my message is always the same.

“You must heed the three key marketing principles of reach, repetition and message. In short, you need a well-planned, well-executed, consistent marketing strategy.

“And that will require a significant, sustained, investment. But get it right and your company will hopefully secure the funding it needs, if not exceed it. It’s the difference between a profitable and rewarding experience and one which can leave you scratching your head and wondering where it all went wrong.

“Too often there’s the theory to achieve equity crowdfunding success requires nothing more than an entrepreneur getting a lawyer, accountant and ‘invest now’ landing page in place and then hoping by putting details on social media their offering goes viral.

“But you have to be smarter than that. Your marketing needs to be consistent, data-driven – which means employing people who can access that relevant investment data - and one which facilitates the development of an investor community of advocates.

“A scattergun approach isn’t what is required here. You need to identify your audience along with the relevant media channels to deliver a consistent campaign and that means hiring experts in the field to ensure you achieve your goals.”
Doug Ellenoff is an attorney with over 30 years of experience in the corporate and securities field. He is co-founder and partner of Ellenoff Grossman & Schole Llc which helps investors and entrepreneurs make the right choice.

He explains: “Many entrepreneurs see equity crowdfunding as an easier route to funding than the more traditional methods of raising capital, while ensuring they keep control of their business.

“You can launch an equity crowdfunding campaign, but unless you plan properly and set aside a suitable budget to ensure your offering is being seen by the right people and that potential interest is being actively cultivated, both offline and online, with consistent and targeted messages at investor webinars with the founders making the case and utilizing compliant and non-promissory ‘invest now’ landing page, you’re asking for not optimizing your financing outcome.”

Equity crowdfunding, buoyed by the US market entering the space following the JOBS Act, has ballooned in popularity over recent years.

Regulation CF investment exemption allows US companies to raise up to $5 million, a Regulation A+ up to $75 million a year.

According to research by Statista, global spending on equity crowdfunding will top $17.8 billion by the end of 2023 – up more than 15% on 2022 ($15.13 billion) and a staggering 189% since 2020.

It is expected to reach nearly $43 billion by 2028.

Adds Shari Noonan, CEO and co-founder of private securities broker-dealer Rialto Market, which provides the infrastructure and technology for equity crowdfunding raises: “It is essential when planning your campaign you gather a strong team around you.

“They need to be experts in the sector – it’s no good just hoping things come right. Your personal and business reputations are on the line here – you need the right partnerships in place.

“Too often, private company entrepreneurs don’t have the knowledge to plan and budget for these equity crowdfunding campaigns. Crucially, many haven’t invested the funds they need to get the marketing off the ground and flying high. It takes a lot of energy and expertise, as well as marketing dollars, to get it up there and working. But this has to be constantly managed and monitored to keep it there in this highly competitive marketplace.

“Private companies have always suffered form a lack of liquidity and within the Reg A+ exemption there is an opportunity to create a secondary market for your shares, potentially.

“Those that succeed – and there are plenty – know this and budget accordingly. They speculate, but they, hopefully, ultimately accumulate too.”

For more information or to arrange an interview with the quoted parties please contact steve.philp@worlddigitalfoundation.com

Ellenoff Grossman & Schole LLP has been in business since 1992. The Firm’s senior founding partners are Douglas S. Ellenoff, Barry I. Grossman and Allen Schole. Doug, Barry and Allen brought together three different but important professional disciplines: Corporate/Securities, Taxation and Real Estate. Over the course of the next three decades, the Firm brought in additional lateral partners, as well as, internally trained associates who have become partners. The Firm has added a range of additional practice groups: Litigation, Intellectual Property, Labor and Employment, Bankruptcy and Immigration. The Firm currently has over 120 lawyers based primarily in New York City, although the Firm services clients from around the world. The Firm started off in offices of 3,700 square feet and currently occupies 60,000 square feet at 1345 Avenue of the Americas.

Rialto Markets is a FINRA member Broker Dealer (Rialto Primary) and operates an alternative trading system (Rialto Secondary – Rialto MarketBoard™) for private securities including those issued as a Digital Asset Security. Rialto Primary supports companies issuing equity and debt securities through Reg A+, Reg CF, and Reg D exemptions. Rialto Markets is registered in all 50 states including those requiring a broker-dealer to issue Reg A+ securities.
World Digital Foundation is a leading digital marketing, media communications, events and data company that allows businesses to build stronger presence, connect with more relevant people, build a community, develop a stronger brand and deliver meaningful lifetime value whether raising capital or building a sales pipeline. Supporting high growth tech and investment businesses address the challenges they face in creating a data driven online strategy and media presence.

Quite what 2023 has in store will be the topic of debate at a special online event being hosted by Crowdfund Insider.
Experts including the World Digital Foundation’s Paul Stannard; Etan Butler, chairman of broker-dealer the Dalmore Group; and lawyer Rebecca Kacaba, CEO of Dealmaker will discuss the challenges equity crowdfunding experienced in 2022 and debate the impact of the JOBS Act 4.0 if signed into law by Congress.
It takes place on February 22 at 1pm EST. For details on how to attend click here.

Steve Philp
World Digital Foundation
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