Investors prioritise factors like an experienced team, proven business model, traction, market opportunity, and (a justified) valuation, as highlighted in a recent Seedrs investor survey. During the webinar presenting the findings, it was also emphasized the key role of crowdfunding videos in the decision-making process.
Establishing Trust with Crowdfunding Videos:
Establishing trust is crucial, especially when individual investors are making emotional decisions with their money. Seeing the faces behind the venture becomes a key factor, playing a significant role in fostering confidence and trust. The pitch video becomes the window into the founders’ personalities, drive, and values, offering a glimpse that a deck simply can’t.
Storytelling for a Broader Audience
There’s also to say that with crowdfunding, your audience isn’t confined to professional investors alone; it extends to casual investors, who could potentially be your future customers – individuals keen on using your product or service. For this broader audience, the storytelling aspect becomes particularly significant. The emotional response and authentic connection conveyed through crowdfunding videos become paramount.
Connecting on a Personal Level
Your potential investors will very likely want to review your financials (as the survey found 97% of investors see financials as important) – and ideally, your investment deck should include that. However, they are also individuals who are emotionally invested in your story. They want to connect with the people behind the project, understand the journey, and feel a genuine resonance with your mission.
This become especially evident when considering that investors are looking for exciting market opportunities, which at the same time can align with their values.
For instance, the survey found that 78% of investors consider ESG factors when making investment decisions. Among these, 80% prioritise environmental considerations, emphasizing the increasing importance of sustainable practices in investment choices. Additionally, 74% express their commitment to investing to have a positive impact on the climate.
The Power of Crowdfunding Videos
Crowdfunding videos are an opportunity to weave together the story of your team, the impact of your product or service, and the vision you’re striving to bring to life. The emotional appeal and relatability embedded in the video are instrumental in building trust and forging a connection, essential elements when engaging both professional and non-professional investors.
In essence your pitch video not only attracts investment but also builds a community around your brand, anchored in shared values and a commitment to positive impact.