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Luke Lang, founder, Crowdcube
Innovative ideas and busy entrepreneurs looking for funding are keeping crowdfunding sites like Crowdcube busy. Yet three out of every four businesses that apply to Crowdcube to raise cash do not
get their pitch. Of the ones that do, only a select few are backed by the crowd and successfully raise their target funds. These eight tips will help entrepreneurs identify what they need to do to increase their chance of success.
1. Offer a precise pitch summary The executive summary element of your pitch is the most important – potential investors above all else need to understand what and who they are investing in. The second part of the summary page is the section about you and your management team. Again, put only the most important and relevant information. Other important areas to cover are:
11 Tips on raising equity
n Use of proceeds: why your company needs investment and how it is going to be spent n Investment (amount and from whom) already received and how this has been spent to date n Potential exit strategies and investment horizon for investors n Consider uploading a video; there is a high correlation between successful pitches and including a good video.
2. Detail your plans and financial forecasts A detailed business plan and financials are prerequisites to list on Crowdcube and will be vetted by our team prior to your pitch being accepted. There is no set template as each business plan varies so much, but a good place to start is to look at the pitches which are doing well and attracting investors.
3. Select the right investment target Don’t ask for any more than you need. Investors want to know why you need their money, and exactly what and how will you spend it. Getting the initial momentum is the hardest part and you
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