Have you got an innovative business with big growth potential and need finance? Then equity crowdfunding is worth considering. In Ireland this year many millions have been raised for businesses using Irish alternative finance company, Spark Crowdfunding. Most recently in the news has been Ebike scheme, MOBY who raised €800k in 30 days after pitching to investors.

There are many types of equity financing available if you know where to look. As Cian O’Flaherty, CEO, of Safecility puts it, “Capitalising your business can be really hard and sometimes people see VC as the only game in town, but other routes can also be useful.” He raised capital from EU funding sources.

Tips for your Equity Raising Journey

Don’t give too much equity away early on or it could be terminal to gaining future investment
Don’t let any inexperienced investors put in onerous terms early on that may wreck engagement with future investors (so in your term sheet watch out for full ratchet, anti-dilution, multiple exit preferences etc.)
Don’t let any toxic investors come on board and have too much power
Seek professionals or if you have multiple investors with various levels of experience, have a professional leader who will set sensible terms

If you are interested in equity finance for your business we’re here to help. We have many professionals in our network who are happy to assist. Call us today on 01 55 636 55.

References:

https://www.irishtimes.com/business/innovation/ebike-scheme-moby-launches-300-000-crowdfunding-plan-1.4387403

https://www.businesspost.ie/post-plus/making-it-work-internet-of-things-start-up-looks-beyond-venture-capital-8a66ed0e