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Why You Should Launch Your StartEngine Campaign During the Holidays

November 13, 2020 4 min read

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Why You Should Launch Your StartEngine Campaign During the Holidays

Are the holidays a good time to launch an equity crowdfunding campaign? At StartEngine, we get that question a lot this time of year from companies thinking about launching an equity crowdfunding campaign on our platform.

They wonder if, with the upcoming holidays, investors might be distracted with family time, shopping for gifts and working to meet annual deadlines at their jobs. They wonder if investors might invest less than they would at other times of year.

Our answer? We think Q4 is actually one of the best times to launch. Here’s why.

The Holidays Are A Great Time to Raise Capital

Despite the fact that the holidays are a time of personal activity for many, our data shows increased activity in the world of equity crowdfunding. In fact, our data index for Q4 2019 shows that more companies launched Reg CF campaigns in the final quarter of 2019 (233 campaigns) than in Q1 2020 (223 campaigns).

What’s more revealing is how much more those companies raised in Q4.

Amount Raised via Reg CF by Quarter

In the final quarter of 2019, companies raised a total of $59.1M via Reg CF and in the first quarter of 2020 that total decreased to $33.3M. In other words, we observed an increase in investment activity over the holidays in Reg CF campaigns across the industry.

Looking at StartEngine specifically, additional data shows that there was no holiday dip in the growth of investment volume on StartEngine.

Amount Raised on StartEngine by Month

Does This Make Sense? 

We know that ecommerce sales tend to jump during the holiday season, meaning users are already spending more time online with their wallets out. 

The chart below shows Amazon’s quarterly revenues. You’ll notice massive spikes during Q4 of each year.

Source: YCharts.com

Of course, there is no direct correlation between increased ecommerce activity due to gift buying and higher investment activity on platforms on StartEngine, but these facts certainly demonstrate that people spend a lot of time on their phones and laptops over the holidays, ready to buy something.

How Can You Use the Holidays to Your Advantage?

With increased online activity come more opportunities to reach your target investors with digital marketing. Take advantage of the additional time investors spend online by crafting impactful ads, emails, and content to distribute across digital channels to increase awareness for your campaign. 

You can also create holiday-related incentives to turn potential investors into actual investors. Just like businesses offer holiday promotions, you can offer holiday-related perks discounts on investment to incentivize users to invest in your campaign.

These seasonal perks could boost the amount of money you raise the way holiday promotions boost retail sales revenue.

Conclusion

Our data leads us to believe that Q4 is a great time to launch your StartEngine crowdfunding campaign. You can take advantage of the increased volume of investor activity on the platform, reach new potential investors who are spending more time online, and offer seasonally relevant perks.
Our team is here to guide you whenever you’re ready to raise the capital your business needs. Explore equity crowdfunding for your business today.

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