Angel Networks · Angel investing

Vetting potential investors on Crowdcube?

Charlie Spokes Crowdfunding - http://bit.ly/InvestInMFC - changing the dating industry for the better!

May 15th, 2019

Hi all,


I'm currently in the midst of a crowdfunding round on Crowdcube and we're getting plenty of requests for pitch decks but a fairly low (in my mind) conversion rate on investments coming from those requests. Has anyone been through this? If so do you have any advice on vetting these investors before allowing access to your pitch deck and any advice on a really strong follow up message to increase our conversion rate?


We've still got 2 weeks to go and are at 66% of target but seem to have slowed down this week having had a really strong start to our live campaign. I obviously want to keep the momentum up.


Background info:

Website - https://myfriendcharlie.co.uk/

Crowdfunding pitch - http://bit.ly/InvestInMFC


Thanks in advance


Charlie

Paul Garcia marketing exec & business coach

May 19th, 2019

It sounds like you may be over-valuing your opportunity. Understand that people on a platform or in real-life probably look at hundreds of opportunities and only choose to get involved in things they resonate with or feel are credible. Perhaps your idea sounds interesting but your deck reveals flaws in your plan or sounds too risky.


Unless you're getting feedback from those who choose not to invest, you will never know.


What happens when you pitch your idea to people IRL? What questions do they have? Have you addressed those questions? When you pitch it to people you know who aren't even remotely likely to invest, what questions do they have? Is their interest in finishing your presentation high? Are they bored? Are they confused? What do they want more information on?


You assume that your pitch deck is perfect. It's not. It could always be improved. And in general you are supposed to customize a pitch to each listener, not use one pitch for everyone. If you don't know anything about your listener, how can you frame your idea in a way that speaks to the things which motivate them? You can't.


So, it is my assertion you are setting your expectations too high when you use a blind platform, by not knowing your audience. It sounds like you might believe your audience owes you an investment because you're just that good.


You don't need to "vet" investors. You need to get to know your audience as individuals and tailor your approach to resonate with each person if you expect to have a higher rate of capture.


I have no idea how the platform you're using works or what your total ask is, but you're getting some significant amount of participation and that's way better than most people will ever get. When you cannot customize for your audience, your effectiveness is always going to be lower.

Charlie Spokes Crowdfunding - http://bit.ly/InvestInMFC - changing the dating industry for the better!

May 20th, 2019

Thank you both for your feedback.


We've had really great responses from pitching face to face and this has been followed up by with investment in all but one instance. We're up to 70% so moving in the right direction.


@Paul - I take your point on having a lower return when you can't tailor your pitch. The reason we went with Crowdcube was to reach as wide an audience as possible. My business is an offline alternative to the vast number of dating apps which have sprung up in the last few years and given that it has a community based approach, (meet new people, make new friends, maybe form a romantic relationship), we decided to use Crowdcube as both a marketing opportunity as well as an investment round.


@Louis - we discussed an investment firm but the general consensus of advisors and potential investors was that we needed a small raise to show more traction & growth before approaching investment firms. I read the original Airbnb pitch - it was very sparse, but as you say it didn't hold them back. Sometimes less is more!


Charlie

Louis Lim Founder, CEO Helios Eos

May 19th, 2019

I saw the websites you posted, why not just find an investment firm while you run it on Crowdcube? Since you already have the write up, video and numbers. It’s hard to say why people are not investing, it’s just a flavour. Note: Airbnb’s pitch was simple too. For vetting who is reading it. Just put a public pitch deck, like what the information is in the video. People who are interested will be interested to ask more, if you are too available and too eager people won’t be hooked anyway.