Well done, you have come up with a truly disruptive idea, you have recruited a great team and have a deck to die for that has a hockey stick projection that points skyward and a really funny video influenced by Dollar Shave Club!
Your conceptual business is worth circa £3m according to your mate who is an auditor at EY and you are only looking for £500k to fund the next 2 years losses which is cheap especially given that you have a positive indication that your investors will get an EIS refund from HMRC.
You have cleared the decks so that you and your team can deal with investors for the next 30 days as your crowdfunding campaign goes live. What could possibly go wrong?....
....Erm, have you managed to find the first 40-50% of the funding yourself before going live?
You were under the impression that crowdfunding websites host crowds of angel investors looking for the next big thing?
Truth is that the crowd (if indeed it exists for you) follows the money (other investors) and the discount programme that hopefully you have set up because with a minimum investment of a tenner and a two grand average they are not big on due diligence and are instead heavily reliant on sentiment and momentum.
So, the truth is that it is entirely your responsibility to bring the crowd to your campaign and the vast majority may never have invested on the platform that you are paying up to 7% to host your raise before.
To succeed at crowdfunding you need to allocate sufficient resource to reaching out to potential investors. Don't expect them to flock to you!
Funding Nav has experience and a process that can improve your chances of succeeding at this where we reach out to 500 new potentials each week for you and engage them in your pitch.
Fees are entirely results based.