For new ideas and startups, crowdfunding has leveled-up the chances for success; particularly, equity crowdfunding. What used to be an arena dominated by large corporations and venture capitalists, small to medium enterprises are now getting the financial support they need to see a project to fruition thanks to equity crowdfunding (“crowdfunding”).
But do crowdfunding projects always end on a positive note? No. There is no magic number to determine immediately if a crowdfunding campaign is bound to be successful. Usually, success is only claimed at the end game, when a target is reached via a predetermined timeline.
As some studies have recently pointed out, there are a few signs to look into, to see if a project could succeed. According to Enventys Partners, a marketing company, some companies can already have an inkling of what will happen before, during and after a crowdfunding launch.
Prior to a project’s launch, the number of leads set by a campaign can be a good way to judge a possible outcome. Once the project has been launched, the first 48 hours are the most crucial.
If a project reaches 25–30 percent of funding during that period, then the metrics point to a very possible, positive outcome. A conversion rate that can be tracked online via social media could also be a good gauge — a 5–10 percent conversion rate could set the premise that a campaign is bound to be successful.
However, more important than just the numbers is finding the right partner to launch a program for a crowdfunding campaign. Having an efficient online platform (which could help from conceptualization, launch, and tracking of results) could result in the difference between success and failure.
Crowdfunding decisions at their best
An AI platform is making it easy for people to know where to invest their money. (Source)
This is where Digital Asset Monetary Network, Inc. (OTCMKTS:DATI) or “DigitalAMN,” could help. This tech accelerator group partners with early-stage companies and introduces them to an efficient model that addresses various stages of a company’s framework — funding, business development, and execution.
Through its Public Accelerator-Incubator (PAI) model, possible investors will be able to see the viability of each startup business. DATI helps to provide important information on investment decisions, such as which businesses are being supported by larger companies or well known ‘Angels’, allowing investors of all sizes to support budding ideas that have a lot of potential.
Through DigitalAMN’s’s PAI model, angel investors, all the way through mom-and-pop investors, can invest in companies that can continue growing, by connecting them with startups from different sectors and other blockchain-based companies.
Now, although there are already a number of existing accelerators and incubators from all over the globe, DATI’s PAI works differently, since it focuses more on accelerating the growth of a company by shortening the amount of time an investor has to wait for their money back; speeding up access to liquidity. The Company’s end-goal is to acquire and develop more innovations that aim to solve problems via unique digital platforms and electronic apps; including within the crypto, blockchain and cannabis markets.
PAI partly works by its ability to vet promising startups and provide possible investors with the funding knowledge they require to make investment decisions. This process allows DigitalAMN to support and build its public equity portfolio with what is also known as smart money startups; promising businesses that have received support from well known and/or successful early-stage investors.
Success story
The DATI platform has already proven to be surprisingly successful. In fact, one of DATI’s supported programs recently announced a successful crowdfunding project, which got 410 % funding in less than 72 hours. With DATI’s support of its portfolio-company, truCrowd.com — one of only 47 FINRA approved equity crowdfunding portals, Building Economic Advancement Networks Corporation (BEAN), was able to get financial support and begin raising money quickly. This proving out DigitalAMN’s reasoning for investing in truCrowd.
In an article on Yahoo! Finance, DATI CEO Ajene Watson shared, “We believe taking an equity stake in truCrowd, which is one of the Top 10 ranked equity crowdfunding portals in the market today, was indeed the right decision for DATI’s shareholders. I am confident that truCrowd will prove to be an important component of our Public Accelerator-Incubator platform as we continue to develop our growing ecosystem for startups, angel investors and everyday people.”
Through truCrowd, BEAN offers investors a “SAFE + REV” investment platform (Simple Agreement for Future Equity PLUS Revenue Participation). As a form of utility used for business, BEAN will actually be giving out BEAN tokens to early investors.
With platforms like the PAI that continue to innovate the way companies like DigitalAMN leverages crowdfunding, the future is bright for startups and other exciting business ideas.