With the emergence of equity crowdfunding as a source of funding for companies, which relies heavily on campaign videos to drive investment, producing the best equity crowdfunding video has never been more important. In our experience creating award-winning videos for successful equity crowdfunding campaigns, we’ve developed a list of do’s and don’ts for producing the most effective equity crowdfunding videos. We’re pleased to share those principles with you below.
Make Your Video Production Personal
When investors think about investing in a company, they don’t just think about the viability of the product or technology in which they’re investing. Investors are swayed by the personal connection they feel with the founder of the company and the company’s story. Including the CEO or founder of your company in the video gives investors a coveted insider’s view into the company.
StartEngine’s Director of Business Development, Kinsey Cronin, emphasizes that the creation of “transparency and trust are key” to a successful equity crowdfunding video.
High-quality Video Production is Essential for Equity Crowdfunding Campaigns
Producing your equity crowdfunding video is NOT the time to skimp on quality. A high quality, professionally made video does more than just look good–it can massively boost a company’s credibility.
A high-quality video production makes a strong first impression on viewers, relays the seriousness of the founder(s), and prevents companies from seeming “unpolished, which doesn’t encourage investment,” says Cronin.
In addition to using high-quality video production equipment, make sure that you and your production team have enough time to plan and execute the video production. From start to finish, the production process can easily take one month or more.
Master Your Equity Crowdfunding Elevator Pitch(es)
Equity crowdfunding is very different than regular crowdfunding because people are placing a bet on the long-term success of your company–not reserving a product. Thus, your equity crowdfunding elevator pitch should be tailored to that particular audience. You may have different pitches depending on the type of investor you’re soliciting–accredited or non-accredited.
In general, the content of your video should cover: What your company does, your company’s unique value proposition, why you and your company are most qualified to succeed, and why people should care right now. Most importantly, tell investors what they can gain from being involved in the company. Will they make money (obviously you can’t promise that)? Will they get to brag to their friends by becoming an investor in a cool new technology? Will they feel proud because they’re investing in a company that strives to make the world a better place? If so, communicate that to them!
Beware of Common Video Production Mistakes
Here are three:
1. Don’t just state facts. Take the viewer on a journey with a clear, scripted path that tells a cohesive story.
2. Make sure you understand the fine line between taking time to make an emotional connection with viewers (by telling your story, stating your values, etc.) and wasting valuable time that you could be using to communicate the most important parts of your message to investors.
3. Know your product/service and use appropriate music that motivates the video forward. Don’t use an EDM track if your company produces children’s products. Although music may only be noticed subconsciously, it sets the tone and influences viewers immediately.
We hope you find the above tips helpful in your equity crowdfunding video production! Feel free to contact us with any questions: info@nv3bc06fz1.onrocket.site.