Main Components of an Equity Crowdfunding Campaign Page - Crowd9 Agency

Main Components of an Equity Crowdfunding Campaign Page

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Main Components of an Equity Crowdfunding Campaign Page

Your campaign page is a space on an online funding portal or crowdfunding platform where you can introduce your company and the reason you are attempting to raise capital. This page will serve as your primary method of communication with a large pool of investors, so it is important to present your information as clearly and accurately as possible.

What is crowdfunding?

Crowdfunding is a combination of the words “crowdsource” and “funding.” It is a way of raising capital by asking for smaller, individual donations from a large number of people.

Campaign Page Elements

1 The Pitch

The pitch is your first introduction to potential investors on your campaign page. Your pitch should include a compelling graphic or a video showcases your product or service. Avoid using stock photos or footage. Using photographs, concept sketches, or recordings of your product in action will build an association to your product.

The pitch section will also include details like your target goal, fundraising deadline, and the minimum investment amount.

2 The Problem

What is the problem are you trying to solve through your company or product? By explaining the problem and providing valuable background information, it will be easier to sell your solution to investors who might be new to your company’s focus industry.

If you have data points, charts, maps, graphs, or similar visual aids to help illustrate the problem you intend to solve through your company, this is where you would include them.

3 The Solution

You have introduced the problem, now explain why your product or company is the solution. What is the solution you are proposing? What makes it different than other solutions that might already exist in the industry? Why will backing it make a difference?

This section is where you can offer up details about things that set your product apart, such as specific features or traits. Consider adding tables, infographics, or other image assets to break up long text and keep your potential investors engaged.

4 Traction

What is your anticipated growth rate in terms of revenue or reach? Include bar graphs or charts if possible to demonstrate metrics to date or a forecast. How will you achieve this growth? What are your plans to increase the ROI?

Examples could be planned/existing partnerships, location/offering expansions, etc.

5 Customers and Demographic

Every solution brought forward will have a target demographic to whom that solution will appeal. What is your intended customer base? Do you already have existing customers? If so, how did you attract them and what did they have to say about your products?

6 Business Model

Tell your potential investors about your company’s business model. What are your plans for the business going forward? How will you scale up your business to have greater reach and success?

7 Market

Talk about the market for your company and its solution. What industry is your product or start-up based in? What is the valuation of the industry? What niche are you seeking to fill in the market with your product? What is your market size?

Including maps, pie charts, or similar visual representations will give any potential investors a clearer picture of the market and your place in it.

8 Competition

Who are your primary competitors in the field? What do they do, and what makes you stand out from them? If they offer a similar solution to the problem you are attempting to solve, what makes your approach stand apart?

A matrix graphic comparing your product to that of your competitors (particularly one that shows where your product exceeds and compares to competitors) will go a long way here.

9 Vision

Share your vision for the company and your funding round here. What is your goal with this project? Do you have a target ROI? Do you intend to ultimately be acquired by a larger company in the industry? If so, what is your exit strategy?

10 Investors

Talk about what role your investors will play in the success of your company. What will be done with this round of funding? What are your investors paying into? If they choose to invest, what happens to your investors’ money, and where will it go?

11 Founder Stories

Who has founded your organization? Tell their story and what prompted them to found your company. How did they get here? Do they have a history of or experience with past successful projects or start-ups?

Advisory board members may also make an appearance in this section, with a photo and a brief listing of their roles in the project.

12 About Your Company

This is where basic details about your company, such as the legal name, status, foundation date, type of organization, number of employees, website URL, social media URLs, and physical location are listed. Most of this information is legally required to be disclosed to investors as well as included on your Form C filing.

13 Your Team

This section is where you include a listing of everyone involved in building your company, and is not strictly limited to employees. Typically your team would include the founder, CEO, heads of various departments, and other helping hands you want to put a spotlight on.

Including headshots or photos of your team members alongside their names and roles can add a sense of professionalism and connection between your investors and your team members.

14 Frequently Asked Questions

If there are talking points that you think might come up frequently, you can set them up as FAQs in Question and Answer form here.

Topics covered might be more detail about specifics in your product, limitations, or the terms or type of offering available to investors.

15 Risks of Investing

This is where you disclose any risks to your potential investors. Some examples are: no guarantee of returns on investments, dilution of equity as a result of future funding rounds, the investor’s lack of voting rights, the investor’s lack or right to an inspection, the company’s rights to close offerings early or never release securities, etc.

This might also include a blanket statement about the risk of the business suffering as a result of new laws or regulations being passed, cyber security threats, or a volatile market.

16 Discussion

This section of the page won’t require any input from you until your campaign page has launched, but this is where your investors can discuss topics or questions with your team. It’s a valuable source of engagement for your investors!

Most crowdfunding platforms offer this section as a built-in feature, and the discussion section may be structured similarly to a comments thread or may appear in a forum discussion format.

Learn more about Equity Crowdfunding

What You Need to File a Form C

If you intend to engage in Regulation Crowdfunding (Reg CF), your company will be required to file Form C with the Securities Exchange Commission. Read more to learn some of the basic legal requirements and see our suggestions for things you will need to know or have on hand before you file.

Reg CF Advertising Regulations

Equity crowdfunding is regulated by the Securities Exchange Commission, and has specific restrictions on when and how companies can promote offerings made as part of Regulation Crowd Funding (Reg CF). Violating these regulations can incur penalties and result in your filing being rejected.

Major Components of a Campaign Page for Equity Crowdfunding

Most equity crowdfunding platforms follow the same basic structure for what is included on your campaign page. View our article for suggestions on what to include and helpful tips on how to get the most out of your campaign pages.

Creating a Company Profile for a WeFunder Crowdfunding Campaign

Platforms like WeFunder request that you provide certain information so that a company profile can be made, which will be presented to investors on the platform and fill out part of your Form C filing, specifically the business plan portion.