The equity crowdfunding industry is still so new that best practices and lessons from real life haven’t yet made it onto paper. But there are some very valuable lessons to be learned from related industries and reading these three books will give anyone a crash course in equity crowdfunding.
Venture Deals by Brad Feld
Venture capital can be confusing at first. Some people treat equity crowdfunding as just Kickstarter with equity, but the best players take the capital raising process seriously and have woven the best of how venture capital deals get done into their platforms. Venture Deals by Brad Feld clearly summarizes the world of venture capital. It covers everything from cap tables, convertible notes, term sheets and liquidation preferences.
Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist
Angel Investing by David Rose
David Rose is the founder of the online angel investing platform Gust and a leading New York angel investor. Angel Investing by David Rose book is a solid introduction for new angel investors. It’s perfect for someone getting to know the world of equity crowdfunding because it treats startups as real businesses to be understood and invested in on a rational basis.
Angel Investing: The Gust Guide to Making Money and Having Fun Investing in Startups
Transforming Customers Into Loyal Owners by Jonathan Frutkin
This book changed my approach to the entire investment industry. We know in practice that investors in an equity crowdfunding round are a mix of: people on the platform, people who are connected to the startup, and new people who are attracted to the campaign. Equity Crowdfunding by Jonathan Frutkin opened my eyes to just how important turning customers into shareholders can be.
Equity Crowdfunding: Transforming Customers into Loyal Owners