WHERE ARE THE VIDEOS IN EQUITY CROWDFUNDING?

On Kickstarter, everyone know you need a good video to attract funding. Why don’t we see more videos in the equity Crowdfunding world?

Take a look at some Kickstarter videos. They’re great! They convey a message. They convey enthusiasm. They convey a will to succeed. They describe the project in the developer’s – sorry, the sponsor’s – voice. They ask for money persuasively.

All of that is relevant to equity Crowdfunding. I think the only reason we don’t see it (yet) is because that’s just not the way we’ve been doing things in finance for the last 30 years. We have a thick Private Placement Memorandum that creates friction in the transaction, but we don’t have a video.

For at least some of its deals, RealtyMogul now has a short introductory video featuring an attractive young representative from Wealth Forge. A good start!

Whenever I speak about Crowdfunding, I suggest that the hard-won lessons of the donation-based world should not be lost on equity-based world. If there’s one lesson from Kickstarter, it’s that videos matter.

NOTE: Any marketing folks see an opportunity here?

Questions? Contact Mark Roderick at Flaster/Greenberg PC.

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