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- Have an existing product or service (MVP), which you would like to develop, or have a significant client/fan base and have a professional team.
- If your business model is B2C and if your brand is known in Hungary, then it will be probably easier for you but you should still expect to spend at least two months on the preparations. However, companies with a B2B business model may too conduct successful equity-based campaigns.
- Look for crowdfunding campaigns, which are similar to your product/service and evaluate them: why do you find them attractive or relevant?
- Think it over, who has already offered you investment or funding as well as who and why rejected you.
- Contact us, browse the prospective legal and business mentors at Tokeportal.com or bring your own mentor, who can help you compile your investment documentation and help you set an appropriate Funding target and the equity you offer in exchange for investment. The mentor partners of Tokeportal.com support the preparation process with charging startup-friendly prices.
- Think it over, how could you activize your current users/clients/followers on social media and make them participate in your success.
- The capital you raise in a crowd round may be either your first investment round or a follow-up If you already have investors, then you need their consent to your crowdfunding campaign. If you already have your investment documentation (deck, one pager and a financial plan), then we can proceed quickly, but if you don’t, then we will help you creating these. We will help you create a business plan for 5 years and validate it.
- The Tokeportal.com team will discuss with you the conditions of launching a campaign, the legal conditions (whether you should restructure your company or set up a new private limited company), and recommends you a mentor to assist your campaign preparations and informs you about the expected costs of the campaign. The process of launching a campaign as well as the applicable fees are explained in detail in the Campaign Agreement.
- The fixed fees of a campaign amount to HUF 200,000-300,000 depending on the required legal measures to be taken,
- you should also reckon with the costs of the video (the partners of Tokeportal.com make videos at a cost of HUF 150,000 and beyond, depending on specific needs).
Not mandatory, but highly recommended elements:
- a business mentor assists the campaign preparations, provides professional help in the creation of the investment documentation and helps you find investors. This work contributes to the development of your company regardless of the benefits for the campaign. The mentoring costs usually amount to HUF 250,000 + success fee.
- Moreover, you should consider the modest costs of online and offline communication.
- The campaign preparations should be started by designing the process and agreeing on the deadlines. Tokeportal.com scores the investment documentation and recommends potential lead investors. Your Lead investor will be that business angel or institutional investor, with whom you can agree on the indicative terms of investment within a short time. Tokeportal.com, its legal partners and the mentor assist this process, too. Having a Lead investor is not mandatory but it may help you a lot in having a successful campaign and a profitable company.
- A campaign can be launched after uploading the investment documentation (one pager, deck, detailed description, video, term sheet) and designing the communication strategy. The latter includes social media, online communication, organisation of public pitches and initiating negotiations with investors. The more active the preparations, the higher the chance of reaching success.
- Communicate with the crowd continuously during the campaign, respond to the questions raised via the online forum, and it’s also worth updating the campaign documentation with the latest news. International examples show that campaigns usually become successful if they can raise a certain fraction of the target capital within the frist few days (including the capital provided by the Lead investor). (Since Tokeportal.com is just launching its service, we expect that the number of registering users will increase during the campaigns, therefore it might take more time to reach the funding target.) The last day of the campaign is either a pre-agreed date or the day when the campaign reaches its Maximum Funding Target. The closing of the campaign is followed by capital increase and the issuance of new shares. In case the campaign is not successful, i.e. it does not reach its Minimum Funding Target, we will draw conclusions and review the possibility of re-launching the campaign.Tokeportal.com assists the Campaign Initiator in all stages of the process.
- Inform your investors regularly about your results and reaching your milestones. It constitutes a basis for trust in your company and paves the way for a follow-up investment round.