As a founder, it is imperative that you are able to demonstrate early traction for your funding round by raising at least the initial 30% of the target through your own networks and contacts.
The Shadow Foundr platform provides you with everything you need to do this in an efficient and compliant manner.
But why should you need to raise the first 30%?
Put simply, if you cannot achieve this initial minimum of 30%, then your campaign will not progress and we will be unable to present your opportunity to the wider investment community.
More importantly, prospective investors want to see that you as a founder are fully vested in the opportunity and that the people who know you best and are familiar with your entrepreneurial endeavour, are also willing to be involved.
Investors want to see that you are so committed and certain about what you are doing, that not only have you yourself invested and have “skin in the game”, but you are also happy to get your own network of friends, family and other contacts involved.
By getting your contacts involved, this will answer the question many potential investors will have in mind when looking at your campaign – “Why should I invest in your business, if you can’t get your own network and contacts to invest, to invest?”
But how do I invite my connections?
Our platform has all the tools you need to let your contacts know about your funding round, including an “Invite Connections” section, where you will find your Unique Campaign URL Link that you can copy and paste to send from your own e-mail address, to invite your network and contacts to access your campaign on the platform.
Bear in mind that you will only pay the lower administration fee and not the higher commission fee when inviting your network and contacts directly.
We have some useful guides to help you understand who you might want to reach out to and how you can reach out to them. In fact, you can even use our email templates. It really is that simple!
What if I don’t get an immediate response?
Raising investment funds is all about momentum; and the way you achieve that momentum is by repetition and telling your story as it unfolds.
You should reach out again and again to all of your relevant contacts and make sure you speak with them about your funding round, and more importantly, about your plans and how you will execute them.
One of the best ways to reach out is by simply giving your contacts a weekly update on the campaign and any significant developments.
You can do this via email and through your social media connections. There is also a facility to upload updates from your Entrepreneur’s Dashboard via our platform.
Get your contacts inspired and have them buy into your vision by telling them all of the things that you have already achieved and explaining what makes your venture so unique.
Most importantly, continue to invite people throughout the entire campaign, even when it has moved onto a public funding round and the opportunity is in the public domain, to ensure you reach your all-important funding target.
In fact, once your opportunity has gone public, this is a great time to reach out to anyone who is yet to respond to your earlier invitations.
At this point, the campaign has a lot more visibility and should have plenty of traction and momentum, elements that indicate to prospective investors that the campaign and your venture is something they would like to be a part of.
Successful funding campaigns require a lot of work from founders. Our platform provides the infrastructure and the tools to make your campaign a success, however it is the entrepreneur and their company that helps to inspire the investors.
With your efforts and engagement, you will raise that all-important minimum 30% of your funding target, which will allow you to move onto a public funding round and have your opportunity seen by the wider investment-community.