AUSTIN, TX — (Marketwired) — 02/23/15 — (), in tandem with the , is now offering entrepreneurs, startups and businesses in Texas the opportunity to learn how to use to raise enough seed investment capital to get their companies up and running. Anyone interested in a free 30-minute crowdfunding consulting session to learn more about crowdfunding should call Robert Hoskins at (512) 627-6622 or send a tweet to .
“Various Texas incubators and accelerators offer attractive deals that promise to provide $50,000 of matching funds and another $50,000 from venture capital partners for any company as long as they can bring their own $50,000 to the table,” said , the Texas Crowdfunding Network–s Executive Director. “The problem is that most startups are bootstrapping their companies and do not have enough money to qualify for these types of expensive cash-up-front accelerator programs.”
“Even though incubators/accelerators have the best intentions of helping startups,” Hoskins added. “There are simply too many startups and not enough seed investment capital to go around. According to a leading even the top Texas accelerators rarely invest more than a total of $150,000 per year in startups. At $50k per deal that means only enough funding for three companies per year.”
Recognizing this widespread problem, the created a new source of alternative financing called “” that provides businesses, including Texas incubators and accelerators, with a new way to raise enough seed investment capital to fund more companies, create more jobs and stimulate more economic development in Texas.
Equity crowdfunding sites now allow businesses to build an online business pitch called a “crowdfunding profile,” which can be viewed by prospective investors 24-hours-a-day, 7-days-a-week. Investors that like deals they find can purchase equity shares via online Texas crowdfunding sites in a similar manner to how Kickstarter and IndieGoGo or ecommerce sites work.
It is completely to . And spending as little as $5,000 to $20,000 to produce the necessary pitch deck/video, disclosure documentation and targeted marketing campaigns to drive investors to crowdfunding profiles makes it possible for any Texas business raise up to $1,000,000 of seed investment capital per year.
Every adult in Texas can now invest up to $5,000 per year in equity investment deals they like. At $5,000 each, a small business only needs 200 investors to raise up to $1 million per year. Marketing campaigns with an average 3% response rate have the potential to drive up to 600,000 Texas investors to a company–s crowdfunding profile. And then, it only takes a very small conversion rate of those investors investing anywhere from $500 to $5,000 each to reach the desired crowdfunding goal.
When trying to raise seed capital most angel investors like to see some sort of traction in the marketplace. Smart companies will only try to raise enough money to deliver a finished product/service that can be sold as well as some marketing programs to begin customer acquisition.
After a successful first round, companies that spend their money wisely and build a solid customer base will be able to raise larger secondary and tertiary rounds as they gain momentum in the marketplace.
“Raising multiple rounds of funding to is a good strategy to develop a loyal base of customers and crowdfunding investors,” Hoskins commented. “It is also a great way catch the eye of angel investors and venture capitalists who will be watching Texas Crowdfunding sites for rising stars that are still at an early stage, but growing quickly.”
Front Page PR has a of helping small startups launch their businesses and begin rolling out their products and services to local, regional, national and global markets. Using that harness the power of targeted content marketing, email marketing, PR and social media, Front Page PR can help any small business build a loyal customer base and begin preparing for a successful equity crowdfunding campaign. Front Page PR offers up to a .
If your business would like to learn more about the , please join our free or visit our to read more about how to setup a or . We can also help setup and to educate members of on how to capitalize on equity crowdfunding to fund startups that need access to seed investment capital.
Robert Hoskins
Front Page PR
(512) 627-6622
@Crowdfunding_PR
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