Who Should Raise with Equity Crowdfunding?

A while back, I asked my friend Jonny Price, who is now the CEO of Wefunder, to explain how startups can succeed by raising from a community and the general public. Wefunder is the biggest equity crowdfunding platform in the US (disclaimer - they're also one of our favorite partners). Jonny's take is that equity crowdfunding, beyond being a financial tool, is meant to help startups build and lead a community. Fundraising can become a way to get customers and fans directly involved in the startup's growth. This creates a sense of ownership and loyalty among a startup's core audience and has compounding value over time. Raising from the crowd requires a lot of work, and comes with substantial upfront costs for marketing, legal, and financial fees, and more. It isn't for everyone. But for the right kind of startup or round, it can bring in a lot of capital and added value. You should consider raising via equity crowdfunding in the following scenarios: - Raising F&F rounds: It can be a smart and less embarrassing way to raise from friends & family when you're just getting started. It makes it easy for them to join, and do it via an online platform. - VC-backed companies: Some later-stage startups open a small slice of their round to the public. It’s a smart way to bring customers closer and widen your investor base. - Consumer-facing brands: Your best customers often want to be more than just buyers. Crowdfunding lets them invest, turning them into loyal ambassadors and super-fans. - Mission-driven startups: If your startup is built on values, equity crowdfunding is a natural fit. You attract investors who care about your cause as much as your product.