Jonny Price, Director of Business Development at Wefunder
Originally from the UK, now living in SF with my wife Ali, daughter Felicity and son Carlyle.
considering raising capital through crowd funding? Jonny Price of WeFunder, a top crowd funding platform, shares his thoughts.
What is it about the startup and early-stage business ecosystem that really excites you?
I'm passionate about using a more democratic approach to raising capital to get more early stage financing flowing to women, entrepreneurs of color, and geographies outside of California, New York and Massachusetts. I'm also excited about the power of recruiting an army of customers and community members as owners of the business.
What need does your service solve in this niche market?
We help startups and small businesses access $50K to $1M in capital -- usually equity capital, sometimes debt. We also help them recruit an army of passionate champions and brand ambassadors, by converting them into owners of the business.
What are 3 of the top tips you want teams considering raising capital through crowdfunding to know - points often overlooked.
#1: It's hard work. You need to drive the momentum, and raise most of the capital. Don't think you will just go live on Wefunder and watch the money roll in.
#2: There is obviously a trade-off between the attractiveness of the terms for you, vs. investors. If you raise on a higher valuation, you retain more equity, but investors will be less likely to invest. When you're raising capital, you need to raise the capital. So don't set your valuation too high that you deter investors.
#3: When running a crowdfunding campaign, focus initially on your inner circle -- e.g. close friends, family, investors you already have a relationship with. The crowd will be more likely to respond once they see some social proof and momentum on the campaign.
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