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Do Not Pit Crowdfund Investors Against Each Other

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2016-03-26 15:09:04
Writing Business Bids and Proposals For Dummies
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You must always show gratitude to your crowdfund investors. Thank them honestly, sincerely, and repeatedly. Your investors are part of your team, and you want them to feel connected with you and with each other. Many investors come to the table with much more than money; they bring talents and skills that can mean the difference between your failure and success.

Unfortunately, some entrepreneurs try to create a contest among their investors. They point out certain investors’ larger contributions in the effort to encourage smaller dollar investors to fork over more cash. Some entrepreneurs even single out their smaller investors to try to guilt them into investing more money. Obviously, this is a horrible idea! Doing so only creates resentment and ill will toward you and your business.

Crowdfund investing is designed to allow people of all income levels to participate. And because your goal is to get support from an entire crowd, each investment — whether at the minimum level you establish for your campaign or at ten times that level — is crucial to your success. You must be grateful for every investment. Doing anything other than showing gratitude will guarantee that you lose support from investors at all levels.

About This Article

This article is from the book: 

About the book author:

Sherwood Neiss is a co-founder of Startup Exemption (developers of the crowdfund investing framework used in the 2012 JOBS Act). He deeply understands the process, rules, disclosures, and risks of capital formation from both the entrepreneur's and the investor's points of view.

Jason W. Bestis a co-founder of Startup Exemption (developers of the crowdfund investing framework used in the 2012 JOBS Act). He deeply understands the process, rules, disclosures, and risks of capital formation from both the entrepreneur's and the investor's points of view.

Zak Cassady-Dorion is a co-founder of Startup Exemption (developers of the crowdfund investing framework used in the 2012 JOBS Act). He deeply understands the process, rules, disclosures, and risks of capital formation from both the entrepreneur's and the investor's points of view.