Why engaged investors are crucial for crowdfunded companies

Do you need to have engaged investors?

Engagement seems to be the buzzword of the moment in online marketing and the internet is full of guidelines on how to boost social media engagement. Engagement is extremely visible in a business to customer setting, which might unfortunately lead to business to business companies overlooking the importance of it. But engagement does not only exist on social media or in a B2C relationship. In B2B setting humans are also the ones making decisions and engagement is an important aspect in their decision making. Especially for the crowdfunded companies, engagement can be seen as the holy grail.

For crowdfunded companies engagement is
all about investors.
Investor engagement stems from different motivations and actions than in more traditional business to customer relationship, hence has a different effect on the company. Investors by default have stronger ties than the customers to the company and a clear motivation to follow, support and be involved in the invested company's journey.

The initial investments were secured after the company managed to create excitement and engagement due to a personal connection and/or an appealing value proposition.

Unfortunately, after the funding round is over the engagement fades because the company gets very busy to fulfill the all the plans and promises of success they have made. Building and maintaining engagement with a large number of investors has not traditionally not been an easy task, it takes time and resources.

Especially for the crowdfunded companies, engagement is the holy grail.


An engaged investor community is one of the biggest assets a crowdfunded company can wish for. The investor community is not just lines in a capitalisation table, but a collection of individuals with multiple talents, connections and knowledge in their own field of business. To be able to tap into those assets can be a huge advantage for any company. In order to utilize the investor community to its full potential, engagement plays an important role. The more engaged the investors are, the more likely they are to offer their help and competence to the company.

The other aspect of engagement is that if the investors stay engaged, it is far more likely that they are ready to invest more when the time comes. Engagement plays a crucial role in the re-investment decision making, and if the company has managed to engage the investors in their journey, the chances are that they will want to stick around.

To answer my own question, why engaged investors are important for crowdfunded companies;

Investors are the crowdfunded company's biggest asset:
Engaged investors will help to reach the targets
and are also more likely to invest again in the future.

Communication builds engagement
There has been a lot of talk about why engagement matters so much, but less about how to generate engagement. Building engagement is not an easy task in any setting, but especially for companies with a large investor base in can be challenging. Engagement in the end boils down to regular and transparent communication with investors, whose numbers might vary from tens to thousands. Communicating with a large number of individuals in a meaningful manner might be a challenge, especially since time is scarce for companies that are in the start/growth phase and have great ambitions.

Generating engaging communication is one of the most important challenges a crowdfunded company has to tackle. Engaged investors can be the secret ingredient to success and the value of tapping into the investor community's knowledge and assets, should not be overlooked.

Communication is the key in building engagement with your investor community


It would be cruel to state a challenge, without giving a solution. CrowdWorks offers an investor relations platform for crowdfunded companies, where they can build engagement with their investors. By focusing communication to one channel and enabling investors to also give back, instead of just being passive receivers, will make engagement building easier. With CrowdWorks crowdfunded companies are able to communicate in a two way manner with their investors, ask and get help, share insights and news, showcase their current KPIs and tell their story, all in one place.

Written by Reetta Pellikka
Digital Marketer of CrowdWorks
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