Welcome to the Thunder Founder Newsletter Issue #17!
If I can't convince the VCs, then crowdfunding is "obviously" the answer, right? Maybe... Let's unpack this a bit and help you understand if crowd equity, more recently popularized as "Community Rounds," is right for you.
1000's of companies attempt to raise capital on popular crowd equity platforms like Wefunder, Republic, and Start Engine. Let's look at some stats:
- 23% Don't Get Funded
- 36% raise < $100K
- 28% raise $100K-$500K
- 6% raise $500K-$1M
- 7% raise $1M+
Raising money from the crowd isn't easy. It's expensive and time-consuming more so than raising from VCs or angels in most cases.
So why do it? Certain startups have strong & engaged communities that believe in the product and want a piece of the company. These startups are best positioned to succeed in rising from the crowd.
But to dive deeper into this topic, Thunder is hosting Jeff Dion from Capital Campaign Quarterback to discuss Community Rounds. Jeff is a former Wefunder employee who is an expert who's helped dozens of companies launch community rounds successfully. Join us on April 6 @ 1 PM ET to learn if crowdfunding is the right step for you. RSVP Here
If you're ready to raise capital, let us know and upgrade to Premium to unlock your targeted investor list of who will have a higher probability of investing. All premium clients receive a complementary consulting session with Jason Kirby, Managing Partner at Thunder. Upgrade Here
What the Experts Have to Say
Do You Need a Crowdfunding Campaign for Your Startup?
Not everyone needs a campaign. This walks you through some important ideas to keep in mind before launching your campaign. Read More
Invest Through Equity Crowdfunding: Risks and Rewards
Equity crowdfunding is slightly different than the classic model. This may be interesting for some founders who are not able to do regular crowdfunding. Read More
Crowdfunding: Pros and Cons
An excellent list of pros and cons to consider and how to think about your startup in the context of such a raise. Read More
Let's stay in touch:
Written by Jason Kirby - https://www.linkedin.com/in/jasonrkirby
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