What does the equity crowdfunding process look like?
- Application Approval or Denial
- Campaign Creation & Planning
- Round of Feedback
- Corrections and Updates
- Campaign goes to the Approval Committee for approval or denial
If you are interested in doing a crowdfunding campaign with FundedByMe, the first thing you should do is submit an application. The form takes less than 10 minutes to complete and gives the FundedByMe team a great overview of your company. Based on this information, the team makes a judgement on whether you can start creating a campaign or not.
As you will see during the campaign creation process, you have to answer specific questions about your company. You need to fill in an elevator pitch and investor pitch as well as upload your business plan and a financial forecast, amongst other things.
Let’s assume the campaign is approved - what happens next?
You have two options. Either you start off with a soft launch in private mode before the actual launch on the platform, or you launch to the public straight away. So what is the difference?
Campaigns that launch in a public round having achieved 30% or more of their funding goal have a significantly higher chance of closing their campaign successfully. One way of reaching this golden 30% is to run your campaign in a private round before beginning the 45-day public round. A campaign in a private round is hosted on the FundedByMe platform, but is only visible to our lead investor network, who have the opportunity to make preliminary investments. A private round is a good opportunity to gain early investments so that when your campaign goes public you have a head-start on your funding goal and added investor credibility.
During the 45-day public round, the campaign is open for any registered FundedByMe member to invest and will close after 45-days, or as soon as your campaign reaches its maximum crowdfunding goal.