Crowdfunding investment proposals generally promote investment opportunities on crowdfunding apps and other online platforms while offering shares as incentives. This is an alternative way to seek funding, especially for startups, since it casts a wide net when seeking multiple investors.
Types Of Crowdfunding Investment Proposals (12)
- Convertible Note Crowdfunding – Proposals attracting investors through conversions of investment debt into equity, thus discussing substantial financial projections.
- Debt Crowdfunding – This type of proposal uses promises of repayment to crowdfunding debtors in exchange for their support.
- Donation-based Crowdfunding – This proposal seeks investment contributions under a nonprofit banner, thus highlighting a cause’s impact.
- Equity Crowdfunding – A proposal that offers ownership shares (or stakes) in order to secure investor support.
- Equity Token Offerings (ETOs) – This proposal attracts crowdfunding investor support by offering blockchains or tokens, rather than capital, as an equity reward.
- Litigation Crowdfunding – This proposal seeks funding specifically for legal maneuvers, utilizing monetary rewards or a mission statement as an incentive.
- Profit-sharing Crowdfunding – A proposal offering a share of a crowdfunding project’s profits during a set period to attract investors.
- Real Estate Crowdfunding – A proposal approaching crowdfunding investors with real estate opportunities, therefore offering an attractive return on investment (ROI).
- Revenue-sharing Crowdfunding – This proposal offers a share of the crowdfunding investment project’s revenues while seeking investor funding.
- Reward-based Crowdfunding – Proposals exchanging non-monetary rewards for a backer’s investment support (i.e., exclusive product access).
- Royalty-based Crowdfunding – A proposal attracting crowdfunding investors by explicitly offering a percentage of future profits.
- Securities Crowdfunding – Proposals specifically offering crowdfunding investors stock, securities, and similar financial instruments (i.e., bonds) for their funding.
1. Crowdfunding Investment Proposal
Set up a cover page for the crowdfunding investment proposal that is professionally designed but eye-catching. Note that while the proposal title may differ from the project, the two should have a clear relation.
- Proposal Title, Accompanying Visuals
- Crowdfunding Company Logo, Name, Address, Phone
Potential Investor Name, Address, Phone
- Taglines, Promotional Language
- App Links, Submission Date, Partner/Sponsor Logos
2. Executive Summary
Concisely present the purpose of this proposal while summarizing it. Explain the business model of the crowdfunding organization as well as the unique selling points of the investment project.
- Mission, Vision Statement, Problem, Opportunity
- Solution, Market and Target Audience
- Revenue Model, Funding Goal, Milestones
- Competitive Advantages, Timeline
- Team Overview, Call to Action
3. Introduction
Discuss the crowdfunding investment project’s objectives and mission while introducing the individuals driving it. Also, speak about the team or organization’s background and, if applicable, past achievements.
- Business Name, Logo, Mission
- Executive Summary Recap, Attention-Grabber
- Context Setting, Vision Statement, Founder’s Story
- Achievements and Milestones, Social Proof
- Investment Opportunity Statement, Table of Contents
4. Problem Statement Or Opportunity
State the problem or opportunity (i.e., a new product) the crowdfunding investment project addresses. For example, point out the market demands or, if more appropriate, funding gaps requiring attention.
- Clear Identification, Scope, Mission Alignment, Significance
- Customer Pain Points, Examples, Market Need
- Opportunity Validation, Long-Term Impact, Customer Stories
- Statistics, Trends, Changes, Regulatory Concerns
- Competitor Landscape, Environmental Factors
5. Solution
Once the problem or opportunity statement has been declared, apply the crowdfunding investment project’s outcomes as the answer. That is, describe the projected market impact, financial projections, or solution benefits (depending on this proposal’s purpose).
- Problem Statement Recap, Unique Value Proposition (UVP)
- Product or Service Description, Milestones, Feedback
- Benefits to the Customer, Target Audience, Scalability
- User Experience, Prototype or Demo, Intellectual Property
- Social or Environmental Impact, Return on Investment (ROI)
6. Market Analysis
Show the project’s SWOT analysis results (strengths, weaknesses, opportunities, threats) in addition to identifying the target market. Present all information available but highlight relevant topics such as supporting information for a projected high return on investment (ROI).
- Industry Overview, Current Trends, Growth Projections
- Market Size, Growth Potential, Competitive Analysis, Advertising
- Target Market Segmentation, Customer Needs and Pain Points
- SWOT Analysis, Regulatory Environment, Barriers to Entry
- Distribution Channels, Market Trends, Customer Acquisition Strategy
7. Crowdfunding Business Model
Describe the business model the crowdfunding organization and project utilize in detail. Here, the sales and distribution channels and strategies can be highlighted in order to attract investors further.
- Value Proposition, Target Market, Cost Structure
- Revenue Streams, Product Sales, Key Resources
- Subscription Fees, Licensing Agreements, Scalability
- Sales Channels, Customer Acquisition Strategy
- Customer Relationships, Key Partnerships, Exit Strategy
8. Revenue Projections
Introduce the crowdfunding project’s revenue model together with its assumptions, timeline, and forecasts. Consider this an opportunity to impress crowdfunding investors interested in a high percentage return on investment (ROI).
- Sales Projections, Pricing Strategy, Risk Awareness
- Revenue Streams, Customer Acquisition
- Market Size and Share, Revenue Growth Rate
- Seasonal Factors, Cost of Goods Sold (COGS)
- Gross and Net Revenue, Assumptions, Transparency
9. Use Of Funds
Present the budgeting for the crowdfunding campaign, explicitly showing the allocation or use of investor funds. For example, define any debts the funds would be used to repay.
- Total Funding Goal, Budget Breakdown
- Marketing, Product Development, Sales, Objectives Impact
- Operations, Technology, Infrastructure, Financial Projections
- Expansion or Scaling, Contingency, Investor Involvement
- Timeline, Return on Investment (ROI)
10. Crowdfunding Investment Terms
Display the term sheet, exit strategy, and ROI while spelling out the investment terms for this project or campaign. Specifically, define the valuation, crowdfunding type, and exit strategy options attached to these terms.
- Minimum and Maximum Investment Amounts, Disclosures
- Valuation Cap (for Convertible Notes or SAFEs)
- Conversion Terms (for Convertible Notes or SAFEs)
- Dividends, Investor Rights, Risks, Equity Ownership Percentage
- Exit Strategy, Platform Fees, Offer Duration, Investor Agreement
11. Exit Strategy
Narrate the various scenarios for the crowdfunding investment campaign’s exit strategy since this is a key factor for many investors. In addition to specifics like profit milestones, demonstrate the crowdfunding organization’s ability to mitigate risks by identifying them and then discussing contingencies.
- Acquisition, Initial Public Offering (IPO), Buyback Option
- Revenue Share, Profit Distribution
- Secondary Market Trading, Business Expansion
- Merger, Licensing, Royalties, Contingencies
- Convertible Securities, Timeline, Risks
12. Risk Factors
Explore each risk to the exit strategy and the crowdfunding campaign in detail. Also, introduce the risk mitigation team, their history with risk mitigation, and their past successes.
- Market Risks, Market Volatility, Economic Conditions
- Industry Risks, Regulatory Changes, Technological Advances
- Business-Specific Risks, Operational Risks, Key Personnel
- Intellectual Property, Quality Control, Financial Risks
- Cash Flow, Debt Obligations, Market Adoption, Competition
13. Team
Lay out the roster for the crowdfunding campaign team in addition to the key players in the organization. Document the team structure, hierarchy, member roles, and contact information accordingly.
- Founder(s) Introduction, Key Executives, Advisors
- Background, Industry Experience, Relevant Experience
- Track Record, Complementary Skills, Strategic Vision
- Food/Beverages Options, Merchandising, Post-Event Areas
- Professional Development, Continued Learning
14. Crowdfunding Milestones And Timeline
Display the campaign’s timeline together with its milestones. Specifically, discuss the growth plan for the campaign, its deadlines, and any alternate contingency timelines.
- Overview, Operational Milestones, Financial Milestones
- Strategic Significance, Marketing Campaigns, Sales Goals
- Key Business Milestones, Revenue Targets, Team Expansion
- Infrastructure Development, Funding Rounds, Customer Acquisition Targets
- Financial Performance, Market Entry, Phases, Parnterships
15. Legal Concerns And Compliance
Present the crowdfunding organization’s legal structure, especially noting its governing body and roster. Also, fully disclose all regulations and laws that apply to the crowdfunding organization’s structure, investment campaign, and activities.
- Regulatory Framework, Crowdfunding Regulations, Trademarks
- Legal Entity Information, Patents, Intellectual Property Protections
- Comprehensive Risk Disclosure, Anti-Fraud Measures, Investor Protections
- Legal Counsel, Legal Advisors, Dispute Resolution, Dispute Mechanisms
- Ongoing Compliance, Legal Disclaimers, Offering Disclaimers
16. Appendices
This document presents a wealth of information regardless of the nature of the crowdfunding campaign. All difficult-to-manage documents, supplementary items (i.e., product blueprints), and visual aids may be gathered into an appendix and cited where needed.
- Financial Statements, Market Research, Compliance Documents
- Legal Agreements, Patents, Trademarks, Technical Specifications
- Product Prototypes, SWOT Analysis, Regulatory Approvals
- Detailed Team Resumes, Intellectual Property Documentation
- References, Exit Strategy Details, Exit Strategy Documentation
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