Startup Funding Espresso -- How Equity Crowdfunding Is Different From Traditional Fundraises

Published: March 17, 2022, 11 a.m.

How Equity Crowdfunding Is Different From Traditional Fundraises Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Equity crowdfunding is different from traditional fundraises. Here is a list of differences to consider: Traditional fundraises expose your company to accredited investors which is a much smaller group. Equity crowdfunding exposes your company to the general public which brings greater branding and awareness. This helps promote and sell your product or services. This gives access to many more potential investors including customers, partners, and developers. It helps build your community and network. Equity crowdfunding also differs from traditional fundraises in that it exposes you to unsophisticated investors. The general public investor is often not aware of the risks in early-stage funding and often have many questions about the startup. It also exposes your financials, team, and other details of your business to a broad range of people. In traditional crowdfunding, the founder spends their time pitching and closing investors. In equity crowdfunding, the founder spends money to advertise on social media and seeks additional investor networks to tap. Equity crowdfunding also comes with fees to meet the compliance requirements. Traditional fundraises typically do not require platform fees. Keep these differences in mind in running an equity crowdfunding campaign. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0\xa0 Please , share, and leave a review. Music courtesy of .