Why You Need to Be on Social Media to Acquire New Investors

“Why do I need to be on social media for my equity crowdfunding campaign when I could put that money into ads?”


As a content marketer and social media manager, I get this question a lot, so I’ve dedicated an entire blog to create clarity around the relationship between equity crowdfunding and social media.


The success of your campaign lies in two major factors:


  1. How well you present your campaign

  2. How many new people you can reach


You can accomplish both in a solid social media campaign. A strong presence on Facebook, LinkedIn, or Instagram can indeed make your campaign look irresistible and reach new people.


If you’re not convinced with these reasons alone, here are five more reasons why you need to be on social media to acquire new investors.


1. To Build Credibility


Social media was designed to connect people together. The more you can connect with others in a personal, emotional, and meaningful way, the more credible and legitimate your brand becomes in your consumer’s mind. A brand that fails to create conversation and connection, not only disregards social media etiquette but risks decreasing the overall brand image along with its campaign.


Quick tips to help create more credibility through your social channels:


  • Be human, authentic, and conversational: People want to see the face behind a brand. As much as possible, CEOs need to create video content that shares the campaign story with captions intended to facilitate personal interaction.

  • Share your expertise: Stakeholders want to engage with the CEO, however, they also want to see content that showcases competency and thought leadership in the marketplace.

  • Be trustworthy: A social media strategy that can convey reliability and transparency to investors will build trust. Share content where your brand has kept its promises and exceeded obligations.

2. To Gain Access to Larger Networks and Social Sharing


If your personal network can not support your entire raise goal, then it’s an absolute must to be on social media to tap into new networks.


Related: The 4 Reasons Why You Should Invest in Facebook Advertising For Your Equity Crowdfunding Campaign


With over 3.6 billion people using social media daily, the opportunity to reach new investors is endless. According to Easyship, “the more you share on your social platforms, the likelihood of success increases. For example,10, 100, or 1,000 Facebook friends, the probability of success increases by 9%, 20%, and 40% respectively.”


Facebook advertising is an absolute must to create reach in a short equity crowdfunding campaign. However, good, engaging content on social media creates organic social sharing. Social shares give your brand more social credibility, while also allowing you to tap into new networks for a fraction of advertising costs.


3. To Share Milestones


Keeping potential investors updated on the growth of your company and campaign, is essential during your campaign. Recognizing your companies milestones and treating them like celebrations on social media can leave a lasting impression on your audience and investors.


Your community wants to celebrate with you, so ask yourself why not?


In addition, these updates can coincide with advertisements, so new investors are receiving pertinent information through multiple touchpoints.


Milestones we recommend you share during your campaign:


  • When you launch!

  • When you hit your minimum raise

  • When you hit $100K, $350K, $500K, $750K, $900K, and $1M

  • When your raise is going to close

  • When you bring on new team members

  • Big accomplishments or milestones in product development

  • When you update your product or service

  • When you create a relevant partnership

  • When you hit 1,00K followers on social media

  • When you are featured in a third-part publication

4. To Create a Brand Identity


Your brand identity provides a medium to communicate the benefits of your business to consumers in a visual way that’s uniquely identifiable. Branding is an instant way to connect with your audience. Since social media is a largely visual platform it’s ideal to create a consistent brand image for new customers and investors.


There are three main components to consider in your social media branding:


  • Messaging

  • Imagery

  • Tag line


It’s important to stay consistent in all three to create a strong and recognizable online brand.

5. To Get Feedback on Your Offering


As more brands prioritize their customer experience, customer opinions being held as the gold standard. Collecting and valuing customer feedback has been more important than ever, as it gives you insight into the minds of your consumer.


By utilizing customer and investor feedback in your business development process you make your customers the big decision-makers, which in turn makes them more likely to enjoy your experience over others.


There are tons of different ways for you to collect feedback on your business, including distributing surveys through social media. You can do this a few different ways:


  1. Creating a poll in your Instagram stories

  2. Using Facebook auto-responder respond to Facebook posts

  3. Send direct messages and ask for feedback

  4. Hosting social media contests


The bottom line is to always collect feedback where your customers are spending their time. With billions of people on average two and a half hours a day on social media, these platforms are a gold mine for investor and customer feedback.


Leverage the Power of Social Media to Find New Investors and Users For Your Business


A strong social media presence can greatly influence the success of your equity crowdfunding campaign. You can create more credibility, touch warm audiences, share milestones, get feedback, and most importantly create a recognizable and engaging brand identity.


Equity crowdfunding is driven by social media, so it’s an absolute necessity to lean on proven social media strategies. Keep these benefits in mind, and don’t hesitate to invest in your social media footprint!


If you’re still on the fence, we’re happy to discuss social media benefits and strategies for your campaign. Contact us! We’re here anytime!


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