Crowdfund Investing For Dummies
Book image
Explore Book Buy On Amazon

Encourage other crowdfund investors to follow your lead, but only if you’re setting a good example. It’s important to understand that the entrepreneur or business owner may be new at communicating with investors.

If people start giving tons of advice or making demands on the entrepreneur, he may have a very difficult time figuring out how to deal with the crowd (on top of trying to deal with his business plan and financing and everything else involved in getting a business off the ground).

The worst thing that could happen is the entrepreneur or owner tries to follow all the advice he’s receiving and gets distracted from his mission.

As an educated investor and a true ambassador for the company, you have the opportunity to set a very good example for other people to follow. Doing so could provide the best help possible to the entrepreneur. When you’re on the funding portal, be vocal in the dialogue or chat rooms. Explain that you’re there to support the entrepreneur and that you understand the decisions are his to make.

When you post comments like this that other investors can read, they may think twice before pestering the entrepreneur. Some investors undoubtedly will never before have invested in a company where their voice can be heard. This experience is completely new to them, and they won’t be sure how to act. If you present yourself confidently and professionally in your comments, some people are very likely to follow suit.

If you read comments written by another investor who’s setting a bad example by being demanding and disrespectful of the business owner’s time, try your best to share with that person what you know about how to be the best possible investor. Encourage patience, but try not to offend.

Let the investor know you understand the desire for immediate answers, but the entire crowd needs to trust the entrepreneur or owner and respect the communication timeline he has established.

About This Article

This article is from the book:

About the book authors:

Sherwood Neiss, Jason W. Best, and Zak Cassady-Dorion are the founders of Startup Exemption (developers of the crowdfund investing framework used in the 2012 JOBS Act). They deeply understand the process, rules, disclosures, and risks of capital formation from both the entrepreneur's and the investor's points of view.

This article can be found in the category: