Five simple tips for a successful crowdfunding campaign
Whilst creating a crowdfunding campaign may not seem like rocket science, if it’s not successful your company could miss out on thousands of pounds worth of investment. When it comes to your business, it’s probably not worth taking the risk – read over our five simple tips to make sure you get the most out of your crowdfunding round.
Social Media
Frankly, this one shouldn’t need to be said – a start-up company without a solid social media presence is a no-go right from the off. Social media is a free platform to sell your company, advertise your brand, reach out to potential customers and attract new business – it’s essential. When investors see your crowdfunding page on a platform, offer easy links to your Twitter, Facebook and LinkedIn so they can get a sense of what you’re about. Let your company’s personality shine through on each site, and update it reguarly to show that you’re staying on top of it. Use it to engage with people and create a brand presence. Through social media, its easy to reach out to smaller online websites and magazines that cover crowdfunding and business news – it could be that they need your story as much as you need the publicity. Trend hashtags, engage on Facebook, set up online Q&As and webcasts to get people involved.
Shoreditch Grind have successfully raised 159% of their target. Their tweets are displayed below:
[twitter-timeline id=628562291378753536 username=Shoreditchgrind]
A good video
Most crowdfunding sites offer the chance to put a video on your page – this can be a great advantage, so use it. Clearly, when raising money over the internet you can’t demonstrate your business or product to each investor individually; the next best way to persuade people of the value of your company is through a persuasive marketing video, effectively demonstrating exactly what it is you do. It is the chance to create an engaging visual definition of your company and get potential investors involved. Whether your video is emotional, comical or clear and factual, a video is an indispensable way to demonstrate what it is that your company does. And even better – there’s no need to invest in a professional to do it for you; there are plenty of video editing sites and apps available for free that, with a bit of creativity, will do the job just as well.
Restaurant chain Filmore & Union have just finished a crowdfunding campaign on Crowdcube and managed to raise 86% more than their funding target. Here is their promotional video:
[youtube http://www.youtube.com/watch?v=kklk1Ax7OdQ?feature=player_embedded&w=640&h=360]
Communication
Whether it’s good news or bad, it is essential to make sure your backers and potential backers are kept in the loop. Post regular updates on your crowdfunding page, and make sure you keep the process going after the campaign has ended – people want to know where their hard earned cash is going. Interact through thank-you emails and social media, ask questions and increase engagement through two-way dialogue.
Introduce the team
Make sure there are clear profiles of your key team members on your fundraising page. People love to put a face to the name, and it creates a personal point of contact so that investors can go direct to members to find out more. It’s all about making your company accessible and engaging – nothing works better in business than cultivating strong personal relationships.
Personality
Last – but definitely not least – give your page some personality. Tell potential investors the story behind your company, build an image of how you started and show them where you want to go. Dry facts and figures may be necessary, but without a hook to pull someone in it’s unlikely that potential investors will even get round to reading them. Have a sense of humour, captivate their interest and engage your investors and make sure you illustrate your company in a way that means they just can’t resist investing.
UK house prices rise, according to Nationwide
UK house prices have risen 3.5% over the last year, taking the cost of the average home to a record high of £195,621.
Official figures released by Nationwide this morning show that prices have risen 0.4% this month, but the annual pace of growth is down on last year.
Nationwide’s chief economist Robert Gardner said: “The number of new homes under construction has started to pick up, albeit from historically low levels, and further increases are required if a sustainable recovery in the housing market is to be maintained over the longer term.”
Mr Gardner said that there are signs that the housing market may be “stabilising close to the pace of earnings growth” which has been constant at around 4% a year.
This month’s price index by Nationwide takes into account the effect of stamp duty reforms brought in meaning £275million less tax being paid by home buyers than under the previous system.
Mr Garder estimated that “around 85 per cent of transactions in London, the South West and South East have benefited from the changes, compared with around 55 per cent in the North, Yorkshire and Humberside, and the North West of England.”
BMW express concern over Chinese market
BMW (ETR:BMW) have become the latest carmaker to admit volatile markets in China may affect business, as its sales fall in the country for the first time in a decade.
The world’s biggest luxury carmaker warned this morning that its outlook could be at risk if the situation in China worsens. The company joins Volkswagen, who have just lowered their sales forecast in China, and Audi, who have both expressed concern over weak demand in the region.
“If conditions on the Chinese market become more challenging, we cannot rule out a possible effect on the BMW Group’s outlook,” the Munich-based carmaker said in its quarterly report.
The company reported a 3 percent fall in second-quarter operating profit this morning, and shares in BMW dropped 2 percent in early trading becoming the second-biggest decliners on Germany’s DAX index.
“The scale of the increase during the forecast period is likely to be held down by fierce competition on automobile markets, rising personnel costs, continued high levels of upfront expenditure to safeguard business viability going forward and upcoming challenges relating to the normalisation of the Chinese market,” BMW said.
Timmy’s Pies offer a slice of their business on AngelsDen
After completing a PhD in molecular biology, Tim Wilkes found himself baking pies for friends and family and then, eventually, selling them at a Chelsea market stall at the weekends. This was in 2010 – now, his company Timmy’s Pies has been trading for five years, won nine Great Taste Awards in the past four years and has stock in some of the finest stores in London.
As Tim puts it, the growth has come from “three years of slog”. The artisan pie company began in West London, and has a focus on using organic, seasonal produce when making delicious pies, sausage rolls, quiches and scotch eggs. From a small company, it has snowballed into a unique brand and sold in a selection of pubs and shops across the capital – including Fulham Football Club.
“My focus had been on baking the best pie I could bake, but in that six months we’d built a bit of a company, and I really enjoyed what we were doing,” says Tim. “Do I quit or continue?”
The answer was continue. Timmy’s Pies are now crowdfunding through AngelsDen for £100,000, in return for 10% equity.
The company has several little quirks that make it a cut above the rest. Their system of ‘pie-roglyphics’ is a ‘simple solution’ to the problem of knowing which pie is which; and a key to it is included with each large order. Their range of mini pies open the business up to the corporate market, and their unique pie personalisation service “say it in shortcrust” has proven hugely popular, especially on Valentine’s and Father’s Day.
According to statistics from Kantar Worldpanel the UK chilled pie market is having a bit of a moment, up 1.9% to £240m. Sales of “posh pies” were up 13.5% and the penetration of premium brands in the market is only at 5.1%, so as Timmy’s Pies have noticed, there is room to grow the category.
The £100,000 investment will be used for hiring staff, the purchase of a few key pieces of kitchen equipment and to help develop shelf-ready packaging.
For further information on this opportunity, visit Angels Den.
Meggitt profits jump 18%, shares up 5%
Meggitt (LON:MGGT), the UK based aircraft equipment supplier soared over 5% in early Tuesday trade after it announced a 10% increase in revenue.
There has been under some pressure elsewhere in the aircraft industry, todays results have been cheered by investors who welcome Meggit’s ability to navigate the challenges in the market.
“Over the last few years we have made important decisions to further improve our competitiveness in the markets we serve. With implementation of the Meggitt Production System we are delivering valued improvements in customer experience through enhanced quality and delivery and, while this will take several years to optimise fully, the experience we have gathered to date serves to increase our confidence that over the medium term it will drive further cost and working capital benefits,” said CEO Stephen Young
In addition to the jump in revenue which supported an 18% increase in first half pre-tax profit, Meggitt said full year profit is likely to be in line with guidance.
Adding to investor’s delight was a 4.6 pence interim dividend to be returned alongside the current buyback program.
Shares in Meggitt were up 5.6% at 11.00am in London trading, the second highest riser after Smiths Group (LON:SMIN) who were up 5.9% after a US activist investor took a stake.
Smiths up 6% as ValueAct take an interest
Engineering group Smiths (LON:SMIN) are up 6% this morning after reports that US activist hedgefund ValueAct have taken a stake in the group.
This comes just after ValueAct revealed that it was the largest investor in Rolls Royce. Although either side is yet to comment, reports from Bloomberg suggest that the fund has taken a 5% stake in Smiths.
The hedgefund has been reportedly considering investing in Smiths for the past year, and discussed the move with outgoing CEO Philip Bowman.
A spokesperson from Smiths commented on the recent interest from ValueAct: “We welcome an active interest from all our shareholders, and we work in the interests of all shareholders at all times.”
Smiths is an engineering group serving a range of global customers including governments, petrochemical companies, hospitals, telecommunications companies and equipment manufacturers in a variety of sectors globally.
Government sells off 5.4% of RBS stake
The government has begun its sell-off of shares in Royal Bank of Scotland (LON:RBS), taking their 79% stake to just below 73%.
The shares were sold at 330p a share, raising £2.1bn. However the sale was well below the 500p per share the government paid when the UK bailed the bank out after the financial crisis, prompting criticism of the move.
The government sold off 5.4% of its stake last night, slightly more than the 5.2% expected by analysts. The government could have sold far more, given the high interest from investors. Around 60% of the shares were sold to hedge funds while, geographically, just under half were bought by investors in the UK.
RBS chief executive Ross McEwan said: “I’m pleased the government has started to sell down its stake.
“It’s an important moment and reflects the progress we are making to become a stronger, simpler and fairer bank. There is more work to be done but we’re determined to build a bank the country can be proud of.”
However, Ian Gordon, a banking analyst at the stockbroker Investec, said he was “perplexed” by the timing of the sale: “Last night’s disposal at 330p achieved a new 2015 low and arguably sold the taxpayer short.”
HSBC profits rise, driven by success in Asia
HSBC (LON:HSBA) reported positive half yearly earnings this morning, with a pre-tax profit of $13.6 billion, up 10% on a year ago.
Figures were driven by strong performance in Hong Kong, with a surge in individual investments and a strong Chinese market earlier in the year. Asia now accounts for two thirds of the bank’s profits, and HSBC are considering moving their headquarters back to Hong Kong.
Growth in Europe and the US remains slow, with the group agreeing to sell its Brazilian opearations for $5.2 billion as it attempts to cut underperforming sectors of the business. The bank has also pledged to cut 50,000 jobs, with over half in brazil and Turkey.
“The environment for banking remains challenging,” said Douglas Flint, the group’s chairman. He mentioned that economic conditions are uncertain in many parts of the world, and “regulatory workloads have never been higher”.
“HSBC’s wealth management revenues in Hong Kong from equities, mutual funds and asset management increased significantly.”
RBS shares drop in the wake of sale rumours
Shares in RBS (LON:RBS) dropped nearly 2 per cent this morning, following rumours that the Government will start selling off its majority stake in the bank at close of trade today.
UK Financial Investment, which manages the Treasury stakes in RBS and Lloyds, advised by Goldman Sachs, has a small window in which to start the sale. It is likely to be today or early next week, but will depend on the interest of investors – if there is too little, the sale may be delayed until September.
In July’s Emergency Budget, George Osborne announced that the government would start to sell off their 79 percent share in the bank. At today’s price, the sale will be around £2 billion, and represents a significant loss on the 502p average price paid in the £45 billion bailouts of RBS in 2009.
UBS trader convicted for rigging Libor rates
City trader Tom Hayes has been found guilty by a jury of rigging Libor rates, in a scandal that shook the industry.
Tom Hayes has been found guilty of eight counts of conspiracy to defraud between 2006 and 2010. He was the “ringmaster” in an enormous fraud to manipulate the interbank lending rate whilst working for both UBS and Citigroup.
London’s Southwark Crown Court heard how he constructed a scheme to interfere with the rate in order to boost his six-figure salary.
In an audio clip played during trial, he said “influencing” Libor was “commonplace” and admitted he was a “serial offender”.Mukul Chawla QC, prosecuting, said Hayes would “cajole”, “beg” and “bribe” brokers through “corrupt” trades to help manipulate Libor.
“On an almost daily basis he set out to dishonestly manipulate or rig Libor at his bank and other banks.”
“He behaved in a thoroughly dishonest and manipulative manner by repeatedly cheating those with whom he had entered into huge financial transactions.
“The motive was a simple one: it was greed.” He was arrested in December 2012, and it due to be sentenced shortly.