Have you been wondering how companies like DSTLD are utilizing modern day funding platforms to launch their startups? We have a terrific example for you today of one Fashion company that turned an idea into a funding community.
Their goal is to help their buyers build a wardrobe of core wearable fashion.
A direct to consumer affordable fashion line.
Equity crowdfunding is still relatively new. It gives you the opportunity to sell pieces of your company to people like investors, customers or brand believers to help expand your business. We spoke to the owners of a fashion startup when they took their equity crowdfunding campaign public to find out how it worked.
They worked with their existing company base by sending out emails to a 6 figure potential investor list. Their hard worked efforts brought in interest of 6 times the investment but the big question was if the people who said they were interested would actually put their money behind that raised hand.
From the minute they went live, they’ve raised more than 900,000 in equity funding.
Building a tribe of engaged and passionate consumers. They are developing brand ambassadors that own a piece of the brand.
Keys things to consider:
How big is your social media network? You have to have enough engaged followers to be able to generate interest.
Do you have the time? Crowdfunding isn’t the easiest way to raise money but it’s a new way to raise money that is proven by hard work. You must put your full focus
Understand that the pre-work is crucial in the outcome. You must understand what your offering and how it lines up against other offerings. Also does what your offering have real value to your customer. Then you must build a strategy around your offering even before you launch.