The JOBS Act passed in 2012, and businesses big and small were abuzz with ideas for online campaigns to raise capital. The legislation opened so many doors that excitement didn’t fade, even when the SEC took three years to finalize the rules on how equity crowdfunding would be launched.
Now that equity crowdfunding and Reg A+ are being incrementally rolled out under the new rules, businesses have turned from dreaming to planning, ready to raise capital on these new platforms. But each plan needs a route of action through all the noise—and you’re not going to beat the proverbial traffic if you don’t route directly to your ideal investors.
The hard part is also the boon for smart businesses
Equity crowdfunding essentially hands you a megaphone while simultaneously opening the door to reach more investors than ever. While you’re raising capital, you’re also raising awareness. This means you have to be prepared—if you don’t have the pieces in place, your stumbles will be public, sharable, and more obvious than ever.
The opportunities for the prepared entrepreneur are endless, and businesses are quickly opting in.
To cut through the noise and get your targeted investors thinking about your offer, you need a carefully-crafted brand voice.
How do you speak to investors?
How do you craft your message in a way that resonates with your ideal investor? Investors will be focused on the numbers, but you need to tap into their personal or emotional “why” to cut through the noise and make an impact. This is done through crafting the right voice to pique that emotional interest.
The golden question: without the numbers, without the graphics and logo and pitch deck, would your message still be compelling to your ideal investor? Equity crowdfunding has further promoted the growing trend of investing in people over companies. Accordingly, it’s the voice of your business that will attract the right investors.
Create your voice for investors
You hopefully already have an established brand voice. Even if your business is a verdant start-up, the voice you’ve created to attract clients is one of the fundamental building blocks of your brand.
That said, your voice for attracting investors might have a few tweaks. In many cases, it’s even better to start from scratch—there really is beauty in starting fresh. The simplest way to find your voice for investors is to sit down with some scratch paper and work through these quick steps:
Jot these qualities down. For example: direct, supportive, clever, competitive, one-of-a-kind, etc.
For example: if you included “competitive” on your list, you might say, “we apply every penny raised to projects designed for competitive market growth.”
These statements channel the more powerful, emotional “WHY” into your pitch material. Keep them tattooed in your mind and write your pitch copy to echo them, directly and between the lines. This is your brand’s voice for connecting with the ideal investor.
Feel empowered. Continue adapting these qualities and statements as you learn more from interactions with potential investors. Start speaking in your brand’s voice at parties just to see what happens. Have fun with it, and get excited, because that energy will help you successfully navigate the waters of the fast-changing equity crowdfunding scene.