Reward Based Crowdfunding: What Equity Projects Can Learn

Reward Based Crowdfunding: What Equity Projects Can Learn



The traditional approach for procuring capital does not encompass
social media, SEO, or other online antics. Many equity portals, however,
integrate social sharing, so learning to network is a huge crowdfunding
component. As Kickstarter, Indiegogo, and countless other portals suggest, projects should amass 30% of their goal before launching.
Although the friends-and-family approach does not fit equity, using
accomplished angel investors to reach 30% can boost authority and
persuade like-minded investors.


In building networks, some equity candidates may find it advantageous
to first run a rewards campaign to validate the concept and grow a
following. To previous supporters, doing so demonstrates growth and
maturity. Running two campaigns back-to-back also allows the social
element to develop, meaning equity campaigns can focus more on the legal
details ahead.