For first time users the actual process of raising money via a crowdfunding platform can seem difficult to navigate. This outline of a standard entrepreneur journey from signup to successful investment will make that process clear and demystify what is, in fact, an easy, uncomplicated and potentially rewarding procedure. Please note: this is not a guide on how to do well, but rather an outline of the standard roadmap for fundraising on SeedTribe. For guidance on how best to approach your fundraise please see our downloadable guide.
The first step is to submit your application by filling in our online form. There are plenty of tips to guide you through each stage. Once it has been submitted it goes to our team to review and we’ll come back to you with any questions.
If you are accepted you will receive an email notifying you to this effect. A member of our team will then arrange a call with you to explain the process and next steps.
Next, you will be emailed our terms and requested to sign and return (this can be done by e-signature). Work on your proposal will not begin in earnest until this step has been taken.
Once you’ve agreed to our terms, your assigned member of our team will review your proposal to ensure optimal performance. You will also be sent our ‘How to guide’ which you can discuss with us so that you are fully prepared for what comes next.
You will also receive our Due Diligence questionnaire. This is mandatory and should be completed as soon as possible. Once complete, it will be uploaded as a document for prospective investors to download. It is designed with your benefit in mind – the more due diligence we can put on a plate to investors, the less they have to worry about, the quicker they are likely to invest having hassled you a good deal less.
Before you launch, you will also need to set a date for a webinar and for a meet and greet event. These will give investors an opportunity to get to know you a little more personally, but without you necessarily having to speak to everyone individually. The webinar will allow you explain your business to anyone who tunes in (or downloads later); it also has the advantage of being able to reach people unable to visit you physically. The event is simply an informal drop-in session, perhaps in your office; perhaps in a pub, which gives interested parties the opportunity to meet you personally.
Once your pitch is launched and you have started enacting your strategies to promote it, you should receive followers quite quickly. Use the update feature on your fundraising page to keep the followers interested so that they will convert into investors. Prospective investors may also have questions for you which they will submit through the platform. Make sure you respond quickly to keep people engaged.
When an investor pledges investment you will receive notification from us and your progress bar will increase by the relevant amount.
When your pitch reaches its target, the investors will be notified and will have 48 hours to opt out of their investment. This is why it is a good idea to allow overfunding of your campaign. After this cooling off period we will then draw down the funds from the investors.
Once we have collected all the funds from investors, they will then be transferred to your company account. It is at this point that we will deduct our fee of 5% of the funds raised.
Once you have received the investment we ask you to give an intro email to your new investors. After that we require that you issue a biannual update to all investors who invested into your company through our platform. It’s a great way to keep them up to date and help create good relations for future funding rounds.
You have passed the test and you may continue your with your investment.