Digital Capital Raising: Its Benefits & Importance in Today’s Market

Raising capital is an uphill battle for most businesses, and the traditional methods that we’re used to - such as networking and handing out business cards at trade shows -aren’t grabbing investors’ attention like they used to. Digital capital raising is the future. And as per Seth Gordon, digital capital raising is also by far the most effective way to get your name into investors’ heads - and eventually into their portfolios. Let’s look at why going digital is a good thing, and why it’s here to stay.

Benefits of Digital Capital Raising

Even if you haven’t been a business owner for along time, you’ve most likely noticed the changes over time: taxes and payroll information stored in spreadsheets and dedicated software instead of filing cabinets, VoIP service instead of traditional landlines, and now: Zoom meetings that fill up your entire Google calendar for the week. Another one of those changes is the way documents are shared. Native news online reports that virtual data rooms are now one of the safest ways to share information - such as your plans for the capital you raise - with potential investors. This is just one of the many perks of digital capital raising.

Digital capital raising also comes with a whole new view towards rewards and interest for investors and stockholders: Cryptocurrency. Investors are looking to diversify their portfolios, and crypto is an extremely tempting option. Due to the volatility of the crypto market, you may be looking more at stable coins such as Ethereum rather than coins that are known for their dramatic dips and rises. As investors look deeper into crypto options, businesses can also take advantage of the interest by using it as a potential reward for investors.

Another benefit of digitally raised capital is how it can be infused efficiently into an operation or a given purpose. An organization with access to an in-house or contracted professional will be well positioned to set up a system quickly funneling digitally raised capital toward the most pressing needs. This means that your capital can be used in the right place almost immediately - no time wasted.

Why is it Required to Survive in Today’s Market?

Traditional meetings with investors over coffee just aren’t happening anymore. Now with everything being done virtually, investors are more likely to “meet” with you virtually while sitting at home in pajamas - and we bet you’d like to be doing the same. Face-to-face meetings area thing of the past, and digital capital raising is just one step into the future.

This shift isn’t unsurprising as the next generation of financers and accountants are being taught the latest digital trends in order to keep up. The Florida Agricultural and Mechanical University has responded to the skills gap within the accounting profession by developing an “aggressive plan to incorporate digital technology and analytical techniques into their accounting program”. Similarly, Maryville University’s online accounting degree has allowed universities to reach a much wider pool of prospective students through digital education, as they can take the course without a SAT or ACT. This has all led to a generation of accountants that are digital-savvy and ready for modern business.

Online banking, generally speaking, has been around for years, and it only gets easier to use as time goes by. Financial decisions are simpler to make and require less paperwork - great news for investors and businesses alike. Going digital for your capital raising is the best way to cut out extra paperwork and unnecessary wet-ink signatures. The market prefers simplicity over bureaucracy.

Most capital currently comes from digital sources nowadays: social media ads, email marketing, and Search Engine Optimization (SEO) brings the most traffic to businesses. In fact, TikTok is expected to exceed 1.5 billion users this year, and advertising on these platforms is going to become easier than ever.

Digital capital raising comes in different forms: from talking to investors on a video call to advertising on social media platforms, the digital part of raising capital is not going anywhere, especially with the pandemic still in full swing. As we move to digital solutions, we see effective options for the pains in our businesses, and it’s time to put those options to work.

Content intended only for the use of wealthblock.ai

Prepared by Alicia Kane‍

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