At Potomac Capital Growth, we have the chance to speak with hundreds of founders every year.
One of the most common, and honestly one of the most important, questions we hear is: “How much can I really raise through equity crowdfunding?”
Some founders come to this question thoughtfully, knowing success depends on many factors.
Others assume that just launching on a platform will automatically bring in millions of dollars.
I understand why. The headlines about companies blowing past their goals are exciting. Viral success stories are everywhere. But for most issuers, the reality today is much more complicated.
I want to share a few insights based on the trends we see every day across our issuers and the broader industry.
If you are thinking about an equity crowdfunding raise, these realities will help you set the right expectations, plan better, and give yourself the best shot at success.
Issuer Competition Is Outpacing Investor Growth
Let’s start with the bigger picture.
Every month, dozens or even hundreds of new companies join the equity crowdfunding market. That is great for the ecosystem. More founders, more ideas, more innovation.
But here is the challenge. The pool of active retail investors is growing, but not as fast.
Investors now have to spread their dollars across a much larger number of offerings. The supply of opportunities is exploding, while the demand is climbing more slowly.
This creates a much more competitive environment than we saw in 2021 or early 2022. The days when you could simply “go live” and expect to raise millions with little effort are mostly behind us, unless you bring a very strong existing audience or happen to go viral, which, to be fair, no one can fully control.
That being said, with more economic stability and fluctuation of traditional stock markets we do believe more retail investors will turn to equity crowdfunding opportunities.
Crowdfunding Is a Virtual Community Round
Here is a shift in thinking that we encourage founders to adopt: Equity crowdfunding works best when you think of it as a virtual community round.
The platforms make it easier to collect investments. But the first and most important source of capital will almost always be your own community: your customers, your email list, your personal and professional networks, your friends and family, your current supporters.
Platforms like StartEngine, Wefunder, and Dealmaker give you the tools to raise. But it is on you to activate your network first.
This early capital is critical because it builds social proof. Investors who do not know you are far more likely to invest once they see others already backing your campaign. They want to feel like they are joining something that has momentum, not taking a blind leap of faith.
That is why we always tell our clients: community is the catalyst. No amount of cold advertising can replace strong early traction from the people who already believe in you.
So, How Much Can You Realistically Raise?
The best early sign of campaign success is your first month. Across hundreds of campaigns, we often see companies raise about 20 percent of their total raise amount in the first 30 days.
If you come out strong, hitting 20 percent or more of your minimum funding target early on, your chances of continuing success go way up.If you struggle to gain momentum early, your campaign can stall fast, no matter how promising your business is.
Here is where many founders miscalculate.They assume their offering will be the outlier. They believe that because their product is great (and I am sure it is), investors will immediately jump in.
In reality, many companies believe they are special. And while many truly are, the platforms are full of strong, compelling companies. You are not just competing against bad deals. You are competing against good ones too.
That is why it is so important to benchmark yourself.
Benchmark Yourself with Data: How KingsCrowd Can Help
At Potomac Capital Growth, we encourage all our clients to use KingsCrowd or similar data platforms to set realistic expectations.
KingsCrowd pulls performance data from thousands of crowdfunding campaigns, broken down by sector, valuation, offering type, and more.
We suggest you look at your industry – whether it is healthtech, consumer goods, cleantech, or something else – and study the average, median, and top 10 percent raise amounts for new offerings.
It is also smart to check the differences between Regulation CF and Regulation A+ campaign results.
For example, if you are a biotech company developing a novel cancer treatment, you might find that new biotech offerings under Reg CF are raising between $350,000 and $750,000.
If you are an alternative energy storage company, you might see that top performers raise over $1 million, but the median campaign struggles to reach $250,000.
These numbers are just examples, but the point stands.
This kind of data is critical. It grounds your expectations in reality, not hope.It also gives you a clearer view of what kind of early traction you will likely need to stand out.
The simple rule is: assume you are average at the start. Work relentlessly to become exceptional.
Keys to Raising More
If you take these realities seriously, you can build a stronger campaign from the beginning.
Here are some lessons we share with every client:
- Plan for a strong pre-launch. Your first month is critical. You should have warm commitments lined up before you even go live.
- Activate your network. Your customers, followers, partners, and personal contacts should all know about the raise. Do not assume they will find it on their own. Tell them. Remind them. Call them. Make it easy to invest.
- Build social proof quickly. Early momentum builds trust, and trust attracts new investors. Focus on getting your first 50 to 100 investors as fast as you can.
- Invest in clear, strong storytelling. Your pitch video, your campaign page, and your advertising should inspire trust, excitement, and clarity. Crowdfunding is not just about the product. It is about the story you tell.
- Benchmark constantly. Track how your campaign is performing against similar offerings.Adjust your tactics if needed.
- Remember that ads are a support tool, not the main solution. Paid media works best after your community shows up and creates early excitement.
Final Thoughts: Realistic Expectations and Hard Work Win
Equity crowdfunding is a powerful tool for raising capital. But like anything powerful, it demands work, strategy, and humility.
The founders who succeed today are the ones who set clear, realistic goals based on data. They work to activate their community early. They treat crowdfunding as a real business process, not a lottery ticket.
If you are about to launch your campaign, ask yourself: What am I doing today to activate my community and build momentum? Because that is the real answer to the question – How much can I really raise?
