The Daplie team, creators of the Daplie Home Cloud Server, made the decision to launch two concurrent crowdfunding campaigns: one under Reg CF and the second under Reg D, 506(c), the first open to retail investors, and the other to accredited.
While Reg D allows for issuers to announce a crowdfunding launch ahead of time, Reg CF does not. When it comes to fundraising, traditional thinking has it that an integral part of fundraising success is “ priming the pump” . In other words, securing support and commitments in advance in order to launch a campaign with a strong start that reflects a high degree of social validation. This is what helps convince investors on the brink of investing to go for it.
How could Daplie attract the number of investors it needed to fulfill its Reg CF campaign without priming the market in advance?
Because equity crowdfunding is an alternative to traditional capital raising, it would make sense that the old rules don’t apply. Daplie embraced Reg CF marketing regulations to zig instead of zag. And when they did, they not only met their target raise, they exceeded it.
How did the Daplie team do it?
Team members didn’t just launch a campaign—they “rolled” it out to friends and family, without engaging in publicity. With a couple of weeks under its belt, the team waited until it had finished its first wave of outreach efforts before moving on to the next one. During this time, the campaign raised over 20% of the minimum raise goal.
Upon reaching that first goal, the team then launched a publicity blitz—its second wave of outreach. One thing we know about successful crowdfunding campaigns it that no one wants to be the first to invest…but people will invest in a product that has shown its got momentum, and that’s exactly what Daplie was able to prove to potential investors.