How to Create a Compelling Equity Crowdfunding Video
It’s no secret that crowdfunding has been on the rise for the past five years and has expanded tremendously with the emergence of top sites like Kickstarter and Indiegogo. But there is a new sheriff in town that is rapidly growing: equity crowdfunding. With equity crowdfunding, people, or the “crowd,” invest in the early stages of a startup’s offering in exchange for rewards or shares in that company.
With equity crowdfunding, just like rewards-based crowdfunding, having a great video is one of the most important factors in a successful campaign. An awe-inspiring video can be a powerful marketing tool and can potentially convince investors to back your campaign. Here are a few key tips for creating a winning equity crowdfunding video.
Gather thoughts for a great pitch. Don’t just “wing it”—have a detailed plan for your video. Having a good video pitch not only convinces people to invest, but it can also produce a better final product. You want your video to intrigue investors so that they want to go through the rest of your offering. Lay out your storyline from start to finish. Start by telling your personal story and then introduce your business. Next, outline the market gap and explain how you are going to fix it. Make sure you state your unique selling point and why you are different from your competitors. Why are you going to succeed? Why should investors want to spend their money investing in you? Be informative on the size of the market you are targeting, your revenue streams and finally, your plans for the future. Make your video so compelling that investors feel proud they are putting money into a company that is going to make a difference. Make investors want to brag to their friends about your product. Ultimately you want to communicate to your potential shareholders that your business is the best possible choice for their money.
Personalize your video. As mentioned above, sell your story first, not your project. It is very important to introduce yourself and your business before presenting your project. Before potential investors fund your project they want to know “the real you”. When someone is pledging hundreds, or even thousands, of dollars of equity to your company, they want to know the person or people behind the idea.
Keep it short. You want to keep the attention of investors and get them excited to take part in your business. Your video should be between two to three minutes. A video that is too long can cause people to lose interest and drift away from wanting to invest in your company. Grab the audience’s attention within the first 10 seconds of your video and make them excited enough to maintain their full attention throughout the duration of your video.
Make it visually appealing. Having an equity crowdfunding video that is professionally produced at a high quality is extremely important and can make or break your campaign. You want investors to believe your business will be successful so they will be compelled to invest. An unprofessional or boring video could steer them away from investing in your product.
Keep it interesting. You want to take the viewer on a journey and leave them wanting more. Use aesthetically-pleasing graphics, and make sure the music used in your video relates to your product.
Equity crowdfunding is changing the game for fundraising and investing, and it can create huge long-term rewards. Just remember: videos are the most powerful consumer-friendly content for entrepreneurs. A video that is done exceptionally well can draw investors to your business.
Need help with your crowdfunding equity campaign? Command Partners can help! Contact us today to get started.