All too often, the responsibility of a company raising capital is left in the hands of a few people…and that weighs on them, affecting everyone. The majority of the team is left out of the process, carrying on day to day operations without input into where the company is going, and how it’ll get there.
Prior to the advent and adoption of equity crowdfunding, some companies going through capital raises would hire a professional to do it for them as they are busy running the company. But what if you are not a Fortune 500 company, but one of the remaining 130 million private companies that may not have the means to hire a professional?
With the emergence of regulated (equity, debt, flow through, royalty) crowdfunding, it’s not possible to use the same methods as before. Every member of your team needs to be involved, informed, and ready to go to bat for the company, and they need to do so actively, with humor and grace.
This means that every member of the team need to be informed on what is happening and actively engaged, while also supporting the company through their own social media presence. Potential investors want to hear directly from the company and the team, not a stranger. They want to feel connected.
Regulated crowdfunding has transformed an entire industry. Other traditional models of raising funds no longer work for 99% of companies around the world. Now you must apply the principle of “all hands on deck,” which means you are not alone. You CAN’T go through the process alone, you need to have a crowd – yes, your “inner crowd”.
Accessing your Inner Crowd
The inner crowd is everyone in your company management, board of directors, advisors, employees, advisors, partners, customers, lawyers, auditors, vendors: notice how large your inner crowd is and how many people and companies your capital raise affects? Does it make sense that they get involved? YES!
The new era of capital raising is called crowdfunding (not solofunding), and transparency means visibility.
Everyone must get involved right from the beginning, and if they are not ready to support, find those that will, and move forward…because the traditional way of capital raising is gone. Your team needs to know what you’re planning to do, and how you’re planning to do it…and they need to be empowered with the skills to create and maintain an active online presence.
Every CEO has the ability to sell their vision and goal to others, inspiring others to follow. This is no different. It’s now transparent so everyone can see that YES, they support you.
Dentons is a great example of a company being involved in every aspect while standing by their word to help companies. They not only supply legal services, but also reach out to their clients to bring introductions via social media.
This is the new paradigm that we are a part of. We all stand to benefit one way or another from a company successfully raising money. People can ‘vote with their money,’ and companies can leverage the power of the crowd to attract their best customers and biggest advocates: their shareholders.
Now get your inner crowd ready for regulated crowdfunding.