Tuesday October 31, 2017 0 comments
DENVER -- Invest Local Colorado announced it has launched a special program to enable businesses, social enterprises and community projects build their fan base of supporters.
According to Invest Local Colorado, in order for any organization to raise money through crowdfunding, it needs a crowd. A crowd is a group of people with a common interest in the products or services of the organization, in the social causes that it may advance, in the community where it is located or any other strong reason to want the organization to succeed.
Although most organizations will have more than one group of prospective supporters, these organizations do not have a crowd. Even though an organization may know a lot of people and are favorably viewed by their customers and community, these people have not been identified and organized to step up and participate in a capital campaign.
Invest Local Colorado said it will offer its Build Your Own Crowd (BYOC) program for free. Participants will have an opportunity to identify and validate their crowds.
Each organization will invite their supporters to join the Colorado Capital Club -- an association of Colorado residents interested in financially supporting Colorado Main Street businesses.
Each individual will declare their support for their favorite organization during the membership application process. This information will be collected and shared with participants in the BYOC Program to help them build their crowds.
“Most businesses incorrectly assume that by standing on a stage and making a pitch or by listing on a crowdfunding platform, that people they don’t know will come to them and make an investment,” said Karl Dakin, Invest Local Colorado CEO.
“You need a ‘crowd’ to raise funding. The failure to build a crowd in advance of a capital campaign is the single greatest reason for failure of crowdfunding campaigns.
“People only invest in businesses where they know the owners and a relationship exists between the business and investor.
“Our BYOC program will help businesses create and manage those relationships.”
Participants in the BYOC program may attend free workshops by the Local Money Marketplace where they will learn tools, techniques and systems for crowd building.
As an extra incentive, Invest Local Colorado said it is offering to waive its standard $5,000 listing fee to any organization that can get 500 or more of their supporters to join the Colorado Capital Club and declare for that organization.
More information on the Build Your Own Crowd (BYOC) program is available at the Invest Local Colorado platform: http://www.investlocalcolorado.com/raise-money.
Organizations interested in participating in the program should contact Dakin at [email protected]