THE 7 DEADLY SINS OF EQUITY CROWDFUNDINGThe 7 Deadly Sins of

Equity Crowdfunding

For every great and investable business that exists, there are a hundred that just aren’t ready. 

And for a hundred different reasons. 

For every great and investable business that exists, there are a hundred that just aren’t ready. 

Whatever the reasons are, they prevent a lot of businesses from even getting close to “making it”.

Here, we’ll take you through the seven deadly sins of equity crowdfunding and how you can avoid falling into their trap.

1. LUST

1. LUST

Have you ever been so infatuated by someone that you don’t see their flaws; they seem completely perfect? Until, that is, they finally show their true colours...Well, the same goes for your business. Don’t get so blinded by your idea that you fail to see its flaws or weak points.

2. GLUTTONY

Try not to have eyes bigger than your stomach.

Don’t over-value your business (especially at the start up stage). Again, it’s worth imagining yourself in the place of potential investors who want to put in as little money as possible in return for as much equity as possible.

2. GLUTTONY

3. GREED

3. GREED

Don’t get carried away and raise too much. If you do find yourself in the position of reaching your funding target, make sure you think carefully about whether or not you want (or need) to go into overfunding. It will require you selling more equity and owning a smaller stake in your business.

4. WRATH

4. WRATH

Stress is probably up there around the top of the list of things that make you mad. So make sure that you’re fully prepared for every stage of your crowdfund campaign and don’t put yourself in a situation you’re not thoroughly primed for.

5. ENVY

5. ENVY

Is the green-eyed monster threatening to rear its ugly head? There might be a similar business to yours whose campaign seems to be rocketing, whilst yours is struggling. Don’t copy great pitches’ business ideas, but do look at how you can adapt their successful fundraising techniques for your own campaign.

6. PRIDE

6. PRIDE

Don’t let your pride get in the way of accepting any useful advice or suggestions you may be given along the route of your equity crowdfunding journey. There are people out there who are willing to help you. By listening to them, you’re giving yourself the best chance of carrying out a successful equity crowdfunding campaign

7. SLOTH

7. SLOTH

Don’t just sit back once the pitch has gone live. Your work is not done; it’s just beginning, and you get out of something exactly what you put in. This means, if you don’t put any effort in, you probably won’t get a closed out round.

Now you know what the seven deadly sins are and how to avoid them, are you ready to start your journey to grow your business?

Visit www.growthfunders.com