Crowdfunding platforms are built around rewards, debt, donations and equity.
We’ll discuss the emergence and future of equity crowdfunding.
This is the free version of Trends PRO #0024 — Equity Crowdfunding
Founders need to raise money.
Equity crowdfunding provides another option to raise capital. In addition to banks, angel investors, venture capitalists and more. You can raise from the public.
Equity crowdfunding shocked the startup ecosystem, created new types of businesses and shifted power dynamics. This is just the beginning.
- Evan Leaphart
- Manav Thaker
- Angela Benton
- Dave Sands
- Dawn Dickson
- Cary Breese
- Daniel Jones
- Pierre Laguerre
- Melissa Regan Vitelli
- Brian Dally
- Crowdfunding platforms will get unbundled. EnergyFunders is for oil and gas investments. Fundrise is for real estate. Localstake is for small businesses.
- Platforms will emerge to crowdfund collectibles. Masterworks and Otis let you buy shares in non-income generating assets. Liquidity comes from resale. See the returns of these Basquiat paintings. And the investment memo for this comic book. Are Pokemon cards and classic cars next?
- If you don’t have time to vet deals, avoid equity crowdfunding.
- Build a process to vet deals. What’s your thesis? What will you not invest in? Do premortems.
- Don’t look at equity crowdfunding in a vacuum. As an investor, you’re looking for yield. Compare this asset class to others.
- Craft a compelling story. Selling is storytelling.
- Crowdfund a community. Give members equity and create alignment. SoleSavy is raising a seed round for a community of sneaker enthusiasts. Where else could this work?
- Use crowdfunding to get users. Linen issues equity for downloading the app and inviting friends.
“Equity crowdfunding is a negative signal.”
Hot rounds get funded before they make it here. But some companies use venture capital and equity crowdfunding. The latter lets non-accredited friends and family invest. Crowdfunding can also be used for promotion.
“Using equity crowdfunding for promotion can backfire.”
If you don’t hit your funding goal, a marketing stunt can become a negative signal to existing and prospective investors.
- Pure Green Raises $1M Through Equity Crowdfunding • See how investors become super fans.
- Equity Crowdfunding: High-Quality or Low-Quality Entrepreneurs? • A study shows that founders using equity crowdfunding may be more likely to fail.
- Why Winc Is Turning to Equity Crowdfunding to Raise Capital • Winc raised from a top-tier VC firm and used equity crowdfunding.
- The Angel Syndicate & Equity Crowdfunding Boom • How equity crowdfunding is changing the investing landscape.
- Dawn Dickson was the first woman to raise the maximum amount through regulation crowdfunding.
Become a Trends Pro Member and join 1,500 other freedom-loving founders
- 📈 Trends Pro Reports • To make sense of new markets, ideas and business models, check out our research reports. Including the Pro Version of this report.
- 🧠 Founder Mastermind Groups • To share goals, progress and solve problems together, each group is made up of 6 members who meet for 1 hour each Monday.
- 🧍 Daily Standups • Stay productive and accountable with daily, async standups. Unlock access to 1:1 chats, masterminds and more by building standup streaks.
- 💬 1:1 Chats • Make new friends, share lessons and find ways to help each other. Keep life interesting by meeting new freedom-loving founders each week. 1-on-1 chats give you a chance to discuss unique shared interests.
What you’ll get:
- 12 Opportunities (100% More)
- 39 Crowdfunded Companies (290% More)
- 23 Crowdfunding Platforms (130% More)
- 15 Crowdfunded Founders (50% More)
- 5 Predictions (150% More)
- 12 Summarized Links (140% More)
With Trends Pro you’ll learn:
- (📈Pro) How does audience-building help you raise capital?
- (📈Pro) Why are companies choosing crowdfunding over venture capital?
- (📈Pro) What’s a non-dilutive alternative to equity crowdfunding?
- (📈Pro) Why should social enterprises consider equity crowdfunding?
- (📈Pro) What types of companies disproportionately use equity crowdfunding?
- (📈Pro) How can no-code tools improve crowdfunding?
- (📈Pro) How did an investor lose money on crowdfunded real estate deal?
- (📈Pro) How does signaling impact which campaigns get funded?
- and a lot more…