Published on May 1, 2020 in Crowdfunding News
Equity crowdfunding is like taking a step into the great unknown. It’s new, it’s exciting, and it’s never been done before at the kind of scale that regulation guideline changes have recently unlocked. For founders, this begs one big question: Can it be profitable? As one EdTech company recently proved, the answer is a resounding “yes.” Here’s how Everydae raised $1 million+ to become the #1 funded campaign on Wefunder in just three months.
Everydae began their crowdfunding journey primed for success by combining two key elements investors look for:
#1: A team with meaningful experience
#2: An innovative product in a market ripe for disruption
In Everydae’s case, the team came to the table with substantial previous exits, extensive expertise in the Edtech space, and a proven track record of exponential growth. Equally importantly, they had carved out a relatively untapped market in the education space: Smart tutoring ($70B TAM).
Everydae opened their campaign with a friends and family exclusivity round. This gave them a chance to test their messaging while demonstrating traction before opening to the public. During this time, they were able to get the ball rolling and simultaneously prime outside leads for the “real” launch.
To scale the campaign’s growth, Everydae partnered with the Arora Project to launch targeted Facebook ads. This process involved testing video and image assets, and continually redesigning creatives until all active ads were 100% optimized for the Everydae target audience. Ad campaigns of this nature are extremely specialized and intensive in nature. In Everydae’s case, the elements included involved:
-Serving long-form copy about the product and team to prospecting audiences who didn’t convert at first touch.
-Converting from video to image assets after preliminary performance testing.
-Using close connections with Neil Patel to target angel investors likely to be interested in pre-IPO rounds.
-Creating targeted messaging and a unique link for angel investors.
These scaling efforts resulted in profitable ad spend of up to $1,000/day — with one investor alone putting in $50,000 after a Facebook ad captured his attention.
By successfully raising over $1 million in just three months, Everydae has set the stage for exponential growth. A profitable equity crowdfunding campaign demonstrates a market validation to future investors while generating press buzz and early name recognition. In short, the horizon is bright for Everydae!