Raising money for your startup isn’t easy! For years, venture capital and bank loans were the obvious go-to options. But today, more founders are looking beyond those traditional routes and turning to their own communities for support through investment crowdfunding.
In a recent webinar, our Director of Startup Banking, Rob Burnett, hosted a conversation with Jazz Parker of DNA (Digital Niche Agency), exploring how investment crowdfunding is opening new doors for startup founders. Together, they unpacked what founders need to know about this growing capital-raising strategy, the strategic advantages it offers over the traditional venture capital route, and how to use it effectively.
Investment crowdfunding lets startups raise capital by selling shares directly to the public – often their customers, fans, and online followers. Instead of relying on a handful of big investors, founders can build a diverse base of smaller investors who are deeply invested in the company’s success.
“Think of it as turning your customers into owners,” Jazz said. “They’re financially invested in your success, and they become one of your best marketing engines.”
Rob added context by comparing equity crowdfunding to other common approaches:
“This is a great option for entrepreneurs who aren’t yet a fit for venture capital or bank financing,” Rob explained. “It’s a powerful way to validate your market while building community ownership.”
While the barrier to entry is lower than VC, investment crowdfunding still requires serious prep. According to Jazz, success depends heavily on marketing and building an audience early.
“This is not Field of Dreams,” Jazz said. “You don’t just post a campaign and get funded. You need a plan to drive traffic and tell your story.”
Authenticity is key. Rob and Jazz agree that founder-led content, such as behind-the-scenes glimpses, honest stories, and product demos connects best.
“It doesn’t have to be polished,” Rob noted. “People don’t want a corporate ad; they want to see the person behind the brand.”
Jazz agreed: “Founders who share their journey, their values, their ups and downs – they build trust. That’s what converts followers into investors.”
Secure operating accounts, flexible lending solutions and powerful digital tools to meet the unique needs of your firm and support every stage of a fund’s lifecycle.
One of the biggest mistakes founders make when launching a crowdfunding campaign is waiting too long to start engaging their audience. Just like preparing your financials or crafting your pitch, building a loyal following needs to happen well before you go live.
Ideally, founders should begin marketing 9 to 10 months before going live. That means showing up consistently on platforms like TikTok (Jazz’s top pick for organic reach), engaging early fans, and experimenting to see what resonates.
“If you wait until launch to start creating content, it’s already too late,” Rob cautioned.
They also touched on influencer marketing, advising founders not to lean too heavily on borrowed audiences. “You need to own your message,” Jazz said. “Otherwise, the attention you buy won’t convert.”
Understanding the legal limits and requirements of different crowdfunding paths is critical to choosing the right strategy for your startup. The structure you choose, whether it’s Reg CF, Reg A+, or Reg D, will shape how much you can raise, what kind of investors you can bring in, and what kind of preparation and compliance is required. Planning ahead with this in mind allows founders to set realistic goals and allocate resources more effectively.
Jazz broke down the legal limits of various crowdfunding options:
For Reg CF campaigns, founders need reviewed or audited financials depending on the raise size. They also typically use a Special Purpose Vehicle (SPV) to simplify the capitalization table.
Even with the right legal framework in place, executing a successful raise requires upfront investment, especially in marketing. Rob asked about budget expectations, and Jazz recommended founders allocate 10–25% of their target raise toward marketing efforts. Campaigns typically last 3 to 6 months and follow a three-phase arc:
Raising capital through crowdfunding isn’t just about choosing the right regulation—it’s about building a strategy that aligns with your growth goals, resources, and audience. By understanding the rules, budgeting wisely, and committing to the full lifecycle of a campaign, founders can turn compliance and marketing into powerful tools for momentum. With the right preparation, your raise can be more than a funding event—it can be a brand-building moment that attracts long-term supporters and propels your startup forward.
From first steps to big leaps, your startup deserves a solution as bold and dynamic as the ideas you’re building.
The biggest takeaway from the webinar? Fundraising isn’t just about numbers—it’s about storytelling, relationship-building, and persistence. At its core, raising capital is a sales process. And like any good sales effort, it requires strategy, consistency, and confidence.
“You’re not just funding a company-you’re selling a vision,” Rob said. “Founders need to be comfortable pitching, closing, and asking for the investment.”
Jazz pointed out that some founders hesitate to act like salespeople. However, successful entrepreneurs embrace the grind. “Content. Ads. Conversations. You need to show up and do the reps,” he said. “Your 100th video will be way better than your first, but you have to start.”
In other words, fundraising isn’t a one-time ask—it’s an ongoing campaign. The more you practice and refine your pitch, the more natural and effective it becomes.
Rob closed the session by reminding founders: investment crowdfunding isn’t for everyone. But for those building early traction, it’s a powerful, viable path that requires grit, patience, and willingness to be uncomfortable.
“At Grasshopper, we want to help founders make informed decisions and access the right capital at the right time,” he said. “We’re not just a bank – we’re your partner in building something great.”
Stepping outside your comfort zone challenges you to learn new things, adapt, and develop skills you didn’t know you had. It’s part of the growth journey every founder faces, and it can be daunting. That’s why Grasshopper is committed to consistently showing up – not just as a bank, but as a partner who supports you through the growing pains and cheers you on every step of the way.
The conversation doesn’t stop here! Whether you want to revisit key takeaways or explore the tools mentioned in more detail, we’ve got you covered. Access the full webinar recording on-demand or connect with Rob Burnett and Jazz Parker directly on LinkedIn. And don’t worry – more founder-focused webinars are on the way! If you’re not already a Grasshopper client, be sure to sign up for our newsletter so you never miss an update.
Brana Webb is a versatile marketing professional with a decade of experience leading brand, content, and digital strategies across industries ranging from financial services to consumer goods. With 8+ years of experience driving brand growth and customer engagement across the banking and fintech space, she has developed a strong track record of translating complex ideas into compelling campaigns that resonate with target audiences. In her current role at Grasshopper, she leads strategic marketing initiatives that support product launches, deepen client relationships, and fuel business growth. With a background spanning both in-house and freelance work, Brana brings a thoughtful, creative, and data-informed approach, helping teams connect more meaningfully with their audiences and move faster toward their goals.
