The heart of a crowd investing campaign is the crowd. The success of funding stands or falls with it. But what makes the typical investor? Why is it even important to know your investors? A look at the investors in the crowd investing platform LeihDeinerUmweltGeld provides information about this.
No matter how innovative a product, no matter how promising a project – to find supporters for a crowd investing campaign, companies have to address the right people and convince them of your project so that they can invest. This is why marketing for companies is an essential aspect of their campaign. This article provides helpful information about who your potential investors are and how you can reach them with your equity crowdfunding.
The insights are based on the evaluations of an investor analysis by the platform LeihDeinerUmweltGeld (LDUG), which specializes in financing in renewable energies and energy efficiency. Since it was founded in 2013, the platform has successfully financed more than 50 projects and raised over 17 million euros in capital. For the analysis, we took into account all crowd-investing projects, investments and investors since 2013.
Investor Analysis: What You Can Learn About Your Investors
The average investor makes 4.11 investments on LDUG. He invests an average of 1,677.50 euros per project. To date, the classic investor has invested EUR 6,896 incorporate projects through crowd investing.
These data already provide you with two important indicators:
- Investors usually invest in more than just one project. You should therefore pay appropriate attention to maintaining your customer relationships. For example, keep your investors informed about the progress of the projects in which they have invested with regular updates. To be based on the industry standards, you can follow the reporting guidelines of the Federal Association of Crowdfunding for your reporting.
- The average investment amount gives you an indication of how many investors you need to convince to achieve the target funding volume for your project. This number can be used, for example, to plan your marketing measures for your equity crowdfunding.
When it comes to crowd investing, it is important to know the target groups.
Of course, an entire investor base cannot be reduced to the characteristics of an average investor. The diversity of the crowd on LeihDeinerUmweltGeld can be seen, for example, when looking at their age distribution.
Investors in the age group between 45-55 years contribute disproportionately to the invested volume compared to their percentage share in the investor base. The 55 to 64-year-olds contributes the largest part of the invested volume with 32.6%, although only about a fifth of the investors can be assigned to this age spectrum.
With a share of around a quarter, investors between the ages of 35 and 44 represent the largest age group on LDUG. If you look at the proportion that they make up in the investment volume, however, these investors only contribute 16.5% to the total amount of investments.
A look at the average investment amount of the different age groups illustrates this picture once again: with increasing age, the amount per investment made increases significantly. With crowd investing, older investors, in particular, invest larger amounts in a project or company.
There are also clear differences when looking at gender. In terms of the share of total investors and the share of the invested volume, men, in particular, are represented much more frequently (more than 82%) than women. By contrast, women invest an average of EUR 500 more in crowd investing than men when they invest. This can be an indication for companies if they can approach their target group with which arguments.
It would help if you kept an eye on the differences in the investment behaviour of investors when planning which target groups you want to draw attention to your equity crowdfunding campaign and your project and what reach you need.
Investors from the federal states of North Rhine-Westphalia, Bavaria and Baden-Württemberg invest particularly frequently in crowd-investing projects on LeihDeinerUmweltGeld. What does that mean for you? You can focus your online advertising measures more on these federal states. Affinity and purchasing power concerning investment decisions are particularly given here. Accordingly, social media advertising and Google advertisements (SEA) can be placed in these federal states and displayed precisely.
Why this information is important about your investors
As has become clear when looking at the age groups, there are major differences in the investment behaviour of investors in crowd investing. Recognizing and clustering these differences in connection with certain characteristics helps you to define target groups.
With an investor analysis, you can
- Identify customer needs and preferences,
- Determine customer values and
- Recognize customer potential.
How to use investor analysis
The results of the analysis can, for example, serve as a basis for creating personas on which companies can align their strategy for investor marketing. Personas are archetypal users or customers. In your case, it is the ideal type of investor.
This enables you to offer your customers the right products and projects, provide relevant content and use target group-specific channels to address potential investors. This is how you address the right investors who will ultimately also invest in your project: So that your crowd investing will be a quick success.