We are still in the early infancy of alternative funding options like equity finance through crowdfunding. If you don’t believe me you only need to search google keyword planner. However, I believe that crowdfunding whether its from rewards, equity or debt. Is in fact the future for the next entrepreneur generation. Just stop for one minute and take a look around you. I bet you it will not be long before you see a person with their head in their iPhone. […]
Crowd Sourced Equity Funding Series In chapter 2 of this series crowdfunding series we are discussing crowd sourced equity funding. In the first article we identified there were two main models of crowd sourced equity funding, Investor led, and Entrepreneur led.In this week’s article we will look at the process the entrepreneur has to follow if they wish to pursue the investor led approach. Equity Based Crowdfunding First of all, a quick recap, investor led crowd sourced equity funding. This […]
Equity Investor Crowdfunding platforms over the last few years have been appearing on the UK funding scene. It’s fair to say its captured the imagination of the public and the media. It has given a landscape for every business owner to try its hand at obtaining equity investment. There are two models which you need to be aware of Investor led and Company led.
If you decide that equity funding is the right option for your company. You will need to invest in a range of legal investor documents. This is essential and provides transparency and protects both the company and the investor. Depending on the type of investor, VC, Angel or family and friends. Each funding opportunity will be unique.
First of all, the Investor will perform a due diligence process, based on their risk tolerance level. However, you need to see the due diligence process as part of your personal business development and a free way to improve your business. Also, you need to try to look beyond the personality of the investor.
An Investor Valuation can turn your ideas into actions, BUT pre-post valuations don’t work well for early stage companies. Having an Investor in your company is a long-term commitment. It can be anything from 1-5 years, you need to be aware that you will be giving up part ownership.