Welcome to the third article in our advice column here at Tech Trailblazers. Entitled “Don’t do that, do this!”, we have some assistance to help your startup reach for the skies, even if money is too tight to mention.
Today we have the pleasure of introducing Sam Quawasmi, co-founder and co-CEO of Eureeca. The company is a leading international equity crowdfunding platform. So who better to guide you through this sometimes neglected option for funding.
“Whilst having a great business idea or invention is a solid foundation, it is rarely enough to guarantee success on its own,” says Quawasmi. “For that, you are likely to need capital and, unless you are extremely wealthy, then you will need to rely on external investment if you are to grow your business.” He believes that equity-based crowdfunding represents an attractive opportunity for many start-up and mid-early stage companies who are looking to raise capital and provides some solid advice to figure out whether equity crowdfunding is right for you.
- Don’t ignore the international potential of your product/solution. Due to our multiple licenses and our key office locations across the world, we specialize in providing businesses with the chance to access funding from an international pool of investors. This broadens the investor base and also means that businesses can leverage this network for strategic connections and expansion into new geographic markets.
- Don’t ignore your investors once you have raised your capital. They are invested in helping your business succeed and often have lots to offer such as advice, market knowledge, and networking opportunities.
- Don’t forget that this is also a fantastic opportunity to showcase your business. This can help to drive sales as well as secure future investment further down the line.
- Do your research as not all crowdfunding platforms are the same. Key differences are in the type of business ideas they accept, the commercial requirements, the people they reach and how they can help support you.
- Do be clear about what you want to raise the equity for. Crowdfunding investors will want to know what their investment is supporting.
- Do decide what you are willing to part with. You must decide how much capital you wish to raise and how much equity you willing to offer in exchange.
- Do concentrate your pitch on solutions. Ensure that you pitch your products/solution around the problems it solves rather than just stating the benefits.
- Do make sure that your crowdfunding platform is formally regulated. At Eureeca, we have been licensed in the UK since 2012, and have been committed to becoming the most regulated equity crowdfunding platform in the world to ensure that we can offer a truly international solution. We now have licenses to operate in three different continents (Europe, Middle East and South East Asia) and have recently opened a London office.