Spark Crowdfunding Review
For Business Owners
Spark Crowdfunding is an Irish equity crowdfunding site
This independent review has been written especially for startups & growing companies which are considering using Spark Crowdfunding to raise money with equity crowdfunding.
- What Is Equity Crowdfunding?
- Best Equity Crowdfunding Sites From Around The World
- How To Crowdfund A Business Through Equity Crowdfunding – Step-By-Step
In this Spark Crowdfunding review, you will learn about:
- Spark Crowdfunding Attitude To Curation
- Which Companies Can Use Spark Crowdfunding
- How Spark Crowdfunding Helps Business Owners
- What Is Unique / Different In Spark Crowdfunding
- How To Raise Money With Spark Crowdfunding
Platform Website: sparkcrowdfunding.com
Spark Crowdfunding Attitude To Curation:
As a two-sided marketplace, Spark Crowdfunding values both their investors and companies seeking funding.
However, they see it as their particular duty to give an excellent experience to the investor side of the equation. This means some upfront curation – to make sure that investors are not being shown companies with no realistic prospects of generating a positive return. They want to make sure that every company has some merit, and can stand on their own two feet.
This curation takes the form of an internal review of every company that applies, prior to it going live. Spark Crowdfunding claims to be “very selective” about the companies that ultimately get the opportunity to go live. Around 10 – 20% of companies which apply ultimately get the opportunity to show themselves to the investing public.
Learn How To Succeed With Equity Crowdfunding
Equity crowdfunding offers amazing potential for startups and growing companies, but it is also a very steep learning curve.
In this step-by-step book, you will hear from the world’s leading platforms and from successful past crowdfunders from around the globe, with all their tips and tricks.
Learn how they did it, and how you can do the same.
Which Companies Can Use Spark Crowdfunding:
Spark Crowdfunding describe themselves as “sector agnostic“.
They originally believed Irish investors would be most interested in scalable technology companies, but in fact there has proven to be investor appetite for a wide variety of sectors – including manufacturing, healthcare, and consumer. When they polled their investors, they were clear that they wanted to be shown a range of opportunities from a range of sectors to help form a broad startup investing portfolio.
However, Spark Crowdfunding are quick to point out that they are a young startup themselves, and are therefore still discovering which sectors do best. After more time has passed, they will have more insight into which companies tend to generate the most interest from their investor database.
Spark Crowdfunding will look at each company on a case-by-case basis.
- They have done pre-revenue companies in the past… but pre-revenue companies need to be qualified in other ways, with a strong team, MVP, and an innovative proposition (not companies which are pursuing a “me too” idea which has been done before)
- They have also done companies with over a decade of operating history.
Overall, they are tending more towards companies which are already revenue-generating, and particularly those with a strong sales pipeline.
Spark Crowdfunding stand ready to assist Irish companies raise growth / expansion capital.
Companies from other countries may use their platform, (for example, they have already helped a UK-incorporated company), but companies considering it should be mindful of their overwhelmingly Irish investor database. Given their natural interests, companies should probably have reasonably strong ties to Ireland if they hope to connect meaningfully with Spark Crowdfunding’s investor audience.
Investors from all over the world can use Spark Crowdfunding. However, offers hosted on Spark Crowdfunding cannot promote themselves in the United States, Canada or Japan.
Raise Size Restrictions:
Companies should be raising a minimum of €50,000. Lesser amounts than this are not cost-effective for either the entrepreneurs, or Spark Crowdfunding to facilitate. There are some fixed costs involved with raising capital!
While there is no absolute maximum, raising €1 million through their platform would be a stretch at the moment.
Offers of around €200,000 – 500,000 is around about Spark Crowdfunding’s sweet spot.
Each individual investor must invest a minimum of €100 per offer. This level has been set to balance the desire of some companies who want to set a very low barrier to investors so they can achieve extremely broad shareholder spread, with a high enough amount so that people are thinking of their cash contribution as an *investment*. This €100 minimum can be increased by the company raising capital, depending on their objectives.
Take The Quiz – Are You Ready For Equity Crowdfunding?
Equity crowdfunding can raise 6 – 7 figures of investment for startups & growing companies, without banks or VC.
But is your company ready to launch?
This short multi-choice assessment has been created to give an indication of whether your company is fit for funding.
All answers are kept completely confidential.
How Spark Crowdfunding Helps Business Owners:
Once a company has gone through the selection process and has been approved to raise money on their platform, Spark Crowdfunding do not want to just leave that company to their own devices. Because the entrepreneurs they are working with are usually doing equity crowdfunding for the very first time, Spark Crowdfunding helps a lot with how to crowdfund.
They also have a robust set of guidelines to help companies put together their pitch content – including the video, copywriting, and imagery. This helps fundraising companies show themselves in the best possible light to would-be investors.
Further, Spark Crowdfunding also offers guidance on how to do the marketing push – i.e. the e-mail marketing, social media, and other promotional efforts to get the word out about their campaign.
What Is Unique / Different In Spark Crowdfunding?
As of the time of writing, Spark Crowdfunding is the only equity crowdfunding platform with Irish origins. While some Irish companies have used foreign equity crowdfunding sites (e.g., the UK-based platform Crowdcube), Spark Crowdfunding differentiates itself from these offshore competitors with a better understanding of the local Irish ecosystem, and a more “attuned” investor database (around 80% of the investors on their site are Irish).
For example, Spark Crowdfunding has a strong working relationship with Enterprise Ireland – the government organisation responsible for the development and growth of Irish enterprises in world markets. They get deal-flow from Enterprise Ireland, and Enterprise Ireland may even co-invest in companies listed on Spark Crowdfunding.
Also, Spark Crowdfunding believes that it is able to hand-hold the companies it works with to a greater extent. Because they have fewer deals listed on their platform at a time, the ones which *are* listed get more focused treatment – they are not just “one of many”.
How To Raise Money With Spark Crowdfunding:
Here are the three main points to give entrepreneurs the best possible chance of succeeding on Spark Crowdfunding. Together, they combine to show a robust company with great prospects.
- Have a good team. Investors invest because of the people as much as the business (if not more-so). You need to be capable, and likeable! Show that your team has all the bases covered, and is ready to dedicate the necessary resource to the crowdfunding marketing effort. If you can do that, it will make your business much more appealing to external investment.
- Have a good business plan. Startups need to be agile enough to adapt quickly, but also need to have a strong strategic vision for where they are going. What is your mission? What are you trying to accomplish? Have a clear reason for why you have decided to seek external capital, and why you see equity crowdfunding as the best means to achieve that. Explain how the cash you are seeking to raise will get you to the next level.
- Learn from the best crowdfunding case studies so that you can replicate their success. Other companies have done equity crowdfunding before – you don’t need to learn from scratch. Absorb as much information as possible so that you are prepared to raise money online!
You’ll learn how to choose the right platform, build a crowd, and raise game-changing money.
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