Equity Crowdfunding Checklist 10 Things You MUST Do Before Launching

Key Concepts

• Equity Crowdfunding Campaign Checklist
• Investor Trust and Credibility
• Platform Selection
• Deal Structuring (Investment Agreements)
• Legality, Compliance, and Disclosures
• Storytelling for Investors
• Campaign Page Structure
• Video and Creative Assets
• Marketing and Public Relations (PR)
• Launch Phases (Preparation, Soft Launch, Live, Rolling Close)
• Launch Day Strategy
• Investor Relations
• General Solicitation (under Reg CF/Reg A+)
• Form C Filing
• Audited vs. Certified Financials
• Tombstone Style Advertisements
• Social Impact Investing
• Retail Investors vs. Institutional Investors
• Rolling Close
• Platform Algorithms
• Snowball Momentum

Equity Crowdfunding Campaign Checklist: A Comprehensive Guide

This video outlines a critical checklist for founders preparing to launch an equity crowdfunding campaign, emphasizing the importance of investor trust and avoiding common pitfalls that lead to failure. The presenter, Salvador Brigman, draws on his experience coaching thousands of founders and highlights that campaign failures often stem from overlooking essential investor expectations rather than a lack of business potential.

1. Platform Selection

• Main Topic: Choosing the right equity crowdfunding platform is paramount for campaign success.
• Key Points: Platforms specialize in different business types (software, retail, real estate, physical gadgets, film) and regulatory frameworks (Reg D, Reg A+, Reg CF).
• Examples: Refunderer, Republic, Start Engine are mentioned as examples of equity crowdfunding portals.
• Argument: Selecting an inappropriate platform can create an "uphill battle from day one."

2. Deal Structuring for Investors

• Main Topic: Crafting the correct investment agreement is crucial for investor acceptance.
• Key Points: Equity crowdfunding platforms act as marketplaces. Founders must present a compelling and acceptable deal structure.
• Technical Terms: Investment contracts can include CrowdSAFE, price rounds, promissory notes, revenue share, property story, and convertible notes.
• Argument: The right agreement encourages investors to say "yes" and become excited about investing.

3. Legality, Compliance, and Disclosures

• Main Topic: Adhering to legal and compliance requirements is non-negotiable.
• Key Points: This includes disclosures in marketing materials (e.g., tombstone-style ads during the "test the waters" phase) and understanding what can and cannot be said publicly regarding general solicitation.
• Technical Terms:
  • General Solicitation: The ability to advertise a crowdfunding campaign publicly.
  • Tombstone Style Advertisements: Simple, factual advertisements that comply with regulations.
  • Form C: A required filing to cash out raised funds.
• Data/Figures: The amount being raised directly impacts compliance requirements, ranging from CEO certification of financials to audited financial statements.
• Argument: Neglecting these aspects can lead to loss of investor trust and legal issues.

4. Crafting a Powerful Story

• Main Topic: Investors are looking for more than just financial returns; they seek to participate in a larger opportunity and potentially social impact.
• Key Points: A compelling narrative should capture the public's imagination, evoke emotion, and demonstrate the company's positive impact, big goals, financial upside, unique problem-solving capabilities, and the strength of the team.
• Argument: This emotional element is particularly important for retail investors, differentiating it from purely commercial real estate deals.

5. Campaign Page Structure

• Main Topic: A well-structured campaign page is essential for converting interest into investment.
• Key Points: The campaign page should mirror the structure of a pitch deck and include critical elements that answer investor questions and prevent frequent FAQs.
• Technical Terms: Data Visualization: Using charts, graphs, and other visual aids to support the narrative and present critical data.
• Argument: An effective campaign page makes both an emotional and logical case for the startup.

6. Video and Creative Assets

• Main Topic: High-quality video and creative assets are crucial for initial engagement.
• Key Points: Every seven-figure equity crowdfunding campaign has invested heavily in their pitch video and campaign page visuals. The video is the first impression for potential investors.
• Content: Videos should include factual information (raise details, market, technology, team) and continue the storytelling to convey the team's personality, product demos, and brand values.
• Argument: This is a "consumer pitch" for retail investors, requiring a focus on storytelling and brand identity.

7. Marketing and Public Relations (PR)

• Main Topic: Leveraging marketing and PR is vital for investor discovery and brand exposure.
• Key Points: Regulations like Reg CF and Reg A+ permit general solicitation, allowing founders to use various channels.
• Examples: Banner ads, Facebook ads, PR, email list building, and social media are all viable marketing strategies.
• Argument: Founders should actively take advantage of these opportunities to drive traffic and build momentum.
• Resource Mentioned: The book "Equity Crowdfunding Explained" is recommended for learning about marketing strategies.

8. Understanding Launch Phases

• Main Topic: An equity crowdfunding launch is a multi-phase process, not a single event.
• Key Points:
  • Preparation/Ideation: Getting everything ready before going live.
  • Soft Launch/Test the Waters: Preliminary marketing with compliant advertisements.
  • Live Phase: The period (typically 60-90 days) when the campaign is active on the platform.
  • Rolling Close: The ability to cash out funds periodically during the live phase.
• Data/Figures: Under Reg CF, companies can raise up to $5 million within a 12-month period. Founders may launch on one platform and then continue raising on another.
• Argument: Awareness of these phases and a clear timetable are essential for founders.

9. Launch Day Strategy

• Main Topic: A specific strategy for the initial 24-72 hours of the campaign launch is critical.
• Key Points: This window of opportunity is easier for securing initial investments. Quick investor action triggers platform algorithms, improving ranking.
• Argument: Early momentum builds a "snowball effect," encouraging more engagement (comments, updates, celebrations) and increasing visibility.

10. Investor Relations Plan

• Main Topic: Maintaining strong investor relations is key for campaign stickiness and future fundraising.
• Key Points: This involves ongoing communication during the live campaign (updates, FAQs, responsiveness) and continues post-campaign.
• Argument: A well-maintained investor base can be leveraged as an asset for future fundraising rounds.

Conclusion and Next Steps

Salvador Brigman emphasizes that while the process can seem daunting, the opportunity presented by equity crowdfunding is significant, with many founders successfully raising seven figures. He offers further guidance through his book "Equity Crowdfunding Explained" and personalized one-on-one coaching calls booked via crowdcrux.com/coaching. He encourages viewers to subscribe, like, and comment on the video, and most importantly, to take action towards their goals.