Where Many Businesses Fail
I attended an equity crowdfunding seminar held April 22 by KoreConX, which is quickly becoming a major resource for Canadian companies wanting to raise money through crowdfunding. The audience was a mix of Exempt Market Dealers, business owners and professionals interested in learning more about this emerging trend.
When I say emerging – it is in Canada. We are behind the U.S. and Europe, but it is presenting an interesting new method of raising money here at home. The message yesterday, however, is that companies need to be well prepared to take advantage of one of the many crowdfunding portals being established today.
A company can do its own crowdfunding of course. You can set up an offer on your website, but the cost of promoting that offer is quite prohibitive. Crowdfunding portals on the other hand have already beaten a path to the doorsteps of EMDs, etc.
Oscar Jofre, a preeminent expert on crowdfunding, led us through the checklist of documents and actions that a company needs to take to be successful. Done right, a company can raise the money they need in a few weeks. And we’re not talking a few thousand, but millions.
There are a lot of regulations and potential pitfalls that companies need to be aware of and KoreConX Eco-System Partners is a network of professionals who can assist and a checklist of what companies will require and what they must do in order to be accepted on one of the crowdfunding portals. If you visit their website, www.koreconx.com, you will find some good information. They are also doing a series of seminars across the country, so check on locations and dates. It is well worth the two hours.
For selfish reasons, I was pleased to hear Oscar emphasize how important social media and marketing play in establishing a successful campaign. Marketing and communications are the areas where most companies fail, and yet, building an image and awareness are critical before launching and during a crowdfunding campaign. Yet it makes perfect sense. The more people know about you, the more attention your crowdfunding drive will receive, the quicker you will raise the money you need.
The marketing and social media message is not limited to crowdfunding of course. Successful businesses value good marketing and social media and view these as investments, not costs. Oscar’s comments reinforce just how critical they are to business today.