How to advertise your equity crowdfunding (Reg CF) raise in 2019
Getting your equity crowdfunding raise setup is a complicated first step, but if you fail to get in front of the right people you’ll struggle to hit your fundraising target. The SEC regulates how exactly you’re able to advertise your business. In this article we’ll go over how and where you can market your raise. ## Advertising Regulation
Before we get into the details, the SEC guidelines indicate; advertisements may only contain “Tombstone information”. Effectively your advertising copy and images may only convey the terms of the deal and a short description of your business. You are not permitted to state your future plans or goals, or what your funding might be used for. Even linking to an article written about your raise is seen as an endorsement, if the article contains non tombstone data, promoting it is not allowed.
Utilizing your crowdfunding platform
Your crowdfunding platform (Wefunder, StartEngine, etc.) wants you to succeed. Reaching out to them to be placed in an email newsletter or featured on the site is one of your strongest bets. Getting promoted on the newsletter puts your company in front of those with both the interest and means to invest. Additionally, getting to the top of a home page can give your raise momentum it needs to succeed. This method of advertising helps you connect to people that have a better understanding of startup investing. Ultimately since this avenue is free, every company raising on a platform should try it out.
Traditional online advertising
Google and Facebook ads are still a reliable source of traffic. With a skilled online marketer and a solid advertising budget you can get a positive ROI. One of the largest potential issues with this avenue is the newness of equity crowdfunding as an investment possibility. Most people are not familiar with equity crowdfunding, and convincing them will ultimately require higher spend.
Crowdfunding focused sites
Sites and blogs focused on aggregating and analyzing startups raising money have the perfect audience. These sites provide help and allow investors to sift through their options and locate the best deal. Our site, startupbenchmark.com, is an aggregator linking out top equity crowdfunding raises. Most of these sites allow some form of advertising, or promotion, as does ours Startup Benchmark. Other sites in this category include crowdfundinsider.com and crowdfilings.com.
Advertising on industry related platforms is a strong promotional tool. If you’re in the restaurant business, a restaurant focused magazine or online forum can be a steady source of investors. Reach out to people that love food and pitch them your idea, connect and convey your true value.
Your own network/audience
The average company raising funds has been in operation for 3 years, and most likely has a readily available network of customers to reach out to. If your company can send out an email, a tweet, or post flyers you can tap into those that are aligned with the mission of your business. This community is also more likely to be supportive and more invested in your success.
These advertising methods can be applied to any type of business, and you should do everything in your power to make sure people know about your raise. Getting money from investors can help both you and them realize their dreams. Ultimately if you are getting involved with Reg CF you should understand how to get the most out of it. If you are interested in connecting to more investors and are looking for guidance, send me an email at email@example.com.