Investment Crowdfunding – Part 13 of 20+ Series – Competitors as Investor Candidates
Karl Dakin
I help you overcome challenges to raising capital. Take advantage of my Motivated Money Method to identify those investor candidates that are most likely to invest. Top expert in fundraising.
Competitors as investor candidates are the subject of part 13 of my series on investment crowdfunding. Asking a competitor for funding may cause readers to think I misspoke. I was raised in the era of ‘greed is good’ and ‘fierce competition’. The thought of doing anything except crushing the competition was totally foreign. I have learned over 45 years that failure to work with competitors may be missing a valuable opportunity.
?In this examination, I will use the illustration of the investment crowdfunding of Greens Gone Wild . The Greens Gone Wild offering memorandum, Form CF-2 Disclosure Statement, and financials can all be viewed and downloaded on their crowdfunding page at CrowdSprouts .
?I use three key factors in assessing the likelihood of any investor candidate to invest in a particular business: (1) do they know you, (2) do they have the funding you seek, and (3) do they have sufficient motivation? An investor candidate may meet all of these factors, but still may not invest based upon the selected type of offering (equity, debt, revenue share, other) or the method of raising capital (506c, 506b, Reg CF equity crowdfunding, intrastate crowdfunding, etc.).
?Possibly the best-known situation where competitors work together is a food court. There is a common dining area surrounded by multiple businesses offering different types of food. You will see these in shopping malls, airports, and main streets. By sharing the eating area, collectively the food businesses may attract more people to their businesses than they would on their own.
?Other situations include ‘pop-up’ markets and stores where business can sell their products at holiday or tourist markets.
?Yet another example is a commercial kitchen where different businesses schedule use of the kitchen on a 24-hour basis to prepare foods for sale in other locations.
?Funding is typically raised within a new business structure such as a cooperative with every participating business holding a share. The need for and the benefits from sharing resources may lead to the sharing activity being funded by local governments.
?The opportunity for Greens Gone Wild to work with its competitors has not yet shown itself. Greens Gone Wild contracts for the packaging of its protein bars and it may explore funding new equipment that it may share with a competitor that that may be operated by the packager.
?Shared resources may be the goal of an investment crowdfunding campaign. The campaign may be directed not only to the participating businesses but also to the local community that will benefit from more economic activity, more jobs, and more tax revenue.
?Example: A group of small art businesses who sell art may raise money to purchase a building on a busy intersection where each of the businesses may have its own galleries and production space.
?Exercise: Identify assets that you need for your business that you can share with other businesses that may include your competitors.
?Successful Funding Show
?On Tuesday, I launched on LinkedIn Live my new streaming show titled Successful Funding. Don Cohen, the producer of his Hour of Empower show was my guest. We engaged in a conversation with the show audience on the topic of ‘community’ – a group of individuals whom you support and who support you.
?If you would like to view this show, a recording is posted under my LinkedIn profile page at
?The Successful Funding show will repeat weekly on Tuesdays at 8 am MST on my LinkedIn profile.
The next Successful Funding show will be Tuesday, January 30 with my special guest Harvey Tuck . We will be talking franchises and funding.
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Don Cohen
I appeared on Don Cohen’s Raising Capital Event Hour of Employer show yesterday where I was joined by Paul Banks.
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?SuperCrowd 2024
?I will be co-hosting the SuperCrowd 2024 event: “The Impact Crowdfunding Event of the Year” which will be held April 17th and 18th online.
?Early registration is now open and you can get deep pricing discounts over the day of the event tickets.
?I have been asked to make a presentation at Noon MST on April 18th where I will share examples of investment crowdfunding offers I have designed that are targeted to small business customers.
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Karl Dakin, the Capital Coach
Dakin Capital LLC
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Great insight on collaborating with competitors to enhance funding prospects. This approach not only maximizes resources but also builds a stronger network. Have you seen any successful examples of this strategy in action? Would love to hear more about practical implementations.
I help you overcome challenges to raising capital. Take advantage of my Motivated Money Method to identify those investor candidates that are most likely to invest. Top expert in fundraising.
10 个月This edition of my Instant Funding newsletter concludes my tour of common investor candidates who are stakeholders in the success of a small business. There are other less well-known though not less motivated investor candidates, but I will not shift to the crafting of investment offers that match the motivations of the investor candidates.