Venture Connectors Tweeted Questions

Our Crowdfunding 101 panel took questions from the Venture Connectors audience last week via Twitter – a first, I think, for the organization. We didn’t have enough time to get to them all. So I thought I’d take a stab at some of them here. If anyone else would like to weigh in, feel free to leave a comment!

bobbyExcellent question, Bobby Ferreri! Crowdfund investing is a natural fit for legal firms, accounting firms, public relations and marketing agencies and anyone in the communications/promotional field. Companies looking to raise funds must be able to tell their story in a compelling way. They have to share a strong business plan. They need all their financials squared away. And they’ll be smart to seek legal advice. So if this is a field that interests you, now’s the time to develop your expertise in what will be required, what works and what doesn’t.

I’d suggest studying up on CrowdCube and other international sites where equity crowdfunding is already legal. Look at the successful pitches – and the unsuccessful ones, too. If you’re an accredited investor, or you have access to an accredited investor’s password, go on CircleUp and study those pitches. And participate in rewards crowdfunding on KickstarterIndiegogo or any number of other sites. There’s nothing like firsthand experience to prepare for what’s ahead.

Attending industry events, participating in social media and good ol’ networking will all pay off, so dive right in. The sooner, the better.

3.10 Due DiligenceGood one, Garrett Bernard! Well, we’ll know more when the SEC releases its guidelines for equity crowdfunding, but certainly companies will need to provide various levels of accounting based on the amount of capital they’re raising. And they’ll need some kind of business plan and vetted proposal with all the equity details. As with any smart investment, it’s important for investors to conduct plenty of due diligence, themselves. We all need to do our field research.

3.10 Get Ahead of Curve

Thanks for the question, Kent Oyler! Seems to me that if you’re not ahead of the curve, you’re going to be left behind. There’s no reason to let that happen, especially since we have plenty of time to prepare. Equity crowdfunding is still in the planning stages. I think it’s always smart to be part of the party planning committee so that you can ensure the party is one you’ll want to be part of. And with our Regional Crowdfund Investing Committee, we’re well on our way!

pls workThose were some of the Tweets we didn’t get to. But I especially love the one above. Crowdfund investing is full of problems and full of possibilities. And frankly, what do entrepreneurs love more than problems we can solve and exciting possibilities we can pursue?

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