One problem we see often with wildly successful Kickstarter and Indiegogo campaigns is a lack of post-campaign growth; in fact, sometimes growth seems to grind to a halt once a campaign ends. On the one hand, it’s understandable; raising far more than your intended funding goal can be a logistical nightmare for fulfillment. On the other hand, though, it’s a shame to miss out on all the exposure a crowdfunding campaign brings. This is why it’s important to have a plan in place after your Kickstarter or Indiegogo project comes to an end. Preferably, you’d have this plan laid out before you launch, but even if you’ve already finished a project and are in the fulfillment stage, it’s not too late to be thinking about your next step in growing your company. While ecommerce options abound, and provide great avenues to sell more product, chances are high you’ll also need a way to continue raising capital in order to grow your business.
Enter: equity crowdfunding.
What is Equity Crowdfunding?
Equity crowdfunding uses online crowdfunding platforms to connect businesses seeking funding with Accredited and Non-Accredited investors seeking equity in exchange for financial contributions. True equity crowdfunding has been legal since 2016, though other forms of equity crowdfunding were legal sooner, and it is closely regulated by the federal government.
The benefits of equity crowdfunding are quite similar to the benefits of rewards-based crowdfunding:
- Access to capital
- Access to a network of early adopters interested in the success of your venture
- Access to support from your investors or backers
- Exposure and public relations
Equity Crowdfunding After a Kickstarter or Indiegogo Campaign
For companies who need to continue raising capital to grow their business, equity crowdfunding is a great follow up to a Kickstarter or Indiegogo campaign.
Consider these six companies that used equity crowdfunding to continue building a successful business after a rewards-based campaign.
Keezel raised $1,174,501 on Indiegogo in 2015. This was followed by an equity crowdfunding campaign that brought together 800 investors. After such success, Keezel launched a second equity crowdfunding campaign in February 2019.
In the summer of 2016, the GeoOrbital wheel raised $1,261,222 on Kickstarter. In addition to that, GeoOrbital has run three equity campaigns – one before the Kickstarter project and two after – raising a total of $3 million.
xCraft ran two successful Kickstarter campaigns in 2015 raising a total of $469,352. Then, in the Spring of 2017, xCraft launched an equity crowdfunding project on StartEngine that hit its maximum funding goal amount of $1.07 million.
The team at MyCroft ran two Kickstarter campaigns, one in 2015 and one in 2018, raising a total of $522,092. Later in 2018, the company ran an equity crowdfunding campaign with a goal of $1.07 million to help them further grow their business.
In 2014, Pono Music raised an impressive $6,225,354 through a Kickstarter campaign. Later that year, they raised another $6 million in just seven days, though they were only able to collect $4 million because of regulatory restrictions.
In 2015, Shark Wheel, a square skateboard wheel, raised $27,843 on Kickstarter. Then, in 2017 Shark Wheel launched a campaign with StartEngine that raised $633,528. This was followed by a second equity crowdfunding campaign in 2019 that has raised nearly $400,000 and is currently accepting investments.
If you’re unsure how to continue growing your business after a successful crowdfunding campaign on Kickstarter or Indiegogo, an equity crowdfunding campaign may be just what you need to raise capital, build your network, get exposure for your product and grow your business.
To learn more about managing and marketing an equity crowdfunding campaign, get in touch today.