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Maurice Sardison shares his top tips and mistakes about Crowd Funding


Maurice Sardison shares his top tips and mistakes about Crowd Funding

Pitching the wrong valuation


Of course, we know that entrepreneurs pitch the wrong valuation, it's one of the things founders stress about the most. What most people don't know is that it's easy to avoid going in too high, or indeed too low, and it starts with putting together a realistic set of forecasts. You can present any argument you can come up with, as long as it involves numbers that are easy to understand, are linked to a strong not for-profit.

Not being clear with your message

I've seen companies attempt to raise fusing their advert or product video as a tool to engage an investor. Sure, show your product, but more importantly, sell the your vision, show the market potential, reward they could earn from joining you on journey. If you have a choice between and creativity, opt for the former every time.


Being frivolous while raising funds


Sometimes an investor will pull their investment if they think you're spending your money too frivolously. l've seen it happen several times on crowdfunding campaigns. It stands to reason you're meant to be growth hacking and bootstrapping your way to success, not blowing all your profits before you've earned them.

Raising when you really need the cash


If you raise when you're out of cash, you’ll come across as desperate, and will quite likely take a deal that's stacked in the investor's favour Just like getting credit, if you apply when you don't actually need it, you'll end up with better deals. It also takes far longer than you think to get money in, so this will make the entire experience far more relaxing.


 


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