The latest webinar from Seedrs saw Emily Fitch-Deeley, Head of Partnerships at Seedrs team up with Zoey Henderson, founder of Fungtn, the premium alcohol-free craft beer, as they discuss everything you need to know about raising funds for your food and beverage business - from preparation to closing the deal, with all of their expert tips and tricks.
The session will provide you with all of the dos and don’ts of raising investment, and practical advice on how to run a successful crowdfunding campaign.
After launching her business in 2020, all from self-funding, Zoey quickly realised she needed to raise some capital externally - which is where her funding journey began.
So, what are the key elements that go into a successful fundraise?
Your own private network
Take your LinkedIn for example - this is your strongest networking platform, and you can use this to help achieve your fundraising goals.
Also, your business’s existing community is a key player in the success of your fundraising. For example, if your business is already trading, you are likely to have a number of people who like and believe in your business and product - these are the people who may be interested in investing. This could be friends, family, customers, or business connections.
When you do crowdfunding you can have hundreds of individual investors who can invest as little as £10 in your business - these tend to be people who care about the success of your business and want to be along for the ride.
Targeting these people is vital, so utilise your network, and spread the word to people who care.
Building a community
Having a business community is imperative when you are running a consumer brand - and having this community can help the success of your fundraising massively.
But, how do you build this community?
Social media following: As a business trying to build a community, social media should be your best friend. Utilise your social media to keep followers engaged in what your business is doing, and provide them with a personalised experience. This will create more loyalty between you and your consumer. Once that network is built then you have the perfect platform to share your fundraiser - to an audience who is likely to care, and want to invest.
Email Newsletter: Keep your community up to date with you! An email newsletter is a great way to make your community feel involved and behind the scenes of your business. Here you can share details of your fundraiser, giving exclusive access and information.
Loyalty Schemes/Rewards: One of the best ways to create customer retention is through loyalty schemes, or offering rewards. Offering these as a business is going to quickly see your community grow as people have something to come back for. During this time of retention, you should be using your marketing skills, and personalisation to make your community want to invest when the time comes.
Appeal to Seedrs Investors
Make sure you’re creating a campaign that excites the Seedrs investors - those who may not already be in your community. What can you do to stand out? How can you make them want to invest in your future?
You need to ensure that your campaign taps into their heads, and their hearts, and excites them.
You can tap into the heads of investors by ensuring you’re providing a strong pitch deck, including valuation, future predictions, and a stand-out pitch. Investors also want to see an element of humanity, and personality, and this is the way to their hearts. Show your journey, and your hard work, and give the business story that will capture the interest of investors.
Once you have got their attention, this is when you can excite people. Investors want to be investing in the next big thing, something that’s not been done before. So make sure you’re showing off your uniqueness and make it exciting!
“If you can get these three elements nailed, then you’ll definitely get investors on board,” said Emily.
Although this all sounds easy, raising investment is a process that takes time, dedication, and hard work. So Emily asked Zoey, from her experience with fundraising, what would be her top dos and don’ts for raising investment.
“DON’T underestimate the amount of time you need to make it work!” said Zoey. “Be as active as you can on all of your funding due diligence.”
“DO, think about it way earlier than you need it so you’re ahead of everything you need to do,” she said. “Be involved with your industry and its people, LinkedIn is a great asset - everyone in your community is a potential investor, so utilise it, and build your community!!”
Ready to find out more? Watch the full webinar here.
Read more about Fungtn and their crowdfunding campaign with Seedrs in this latest case study.