case studySeptember 2021
Loveseat
Size of the team:
8-10 employees
Business model:
Ecommerce (now a marketplace)
# of customers:
A few hundred at time of launch
Amount raised/revenue pre-Wefunder:
$1M in annual revenue, raised $1.5 - 1.75M prior to Wefunder
Accelerator alums:
N/A
Post-close care:
Periodic email Updates, reply to inbound questions from investors, annual reports
Loveseat is a returned goods marketplace focused on home goods. It was founded in SoCal by a husband and wife team, Chris and Jenny Stanchak. Scroll on to see how they raised $242K from nearly 300 investors back in 2019.
Pre-launch Prep
- Create a calendar.Prior to launch, Chris made a calendar which outlined which type of outreach he’d be focusing on each day. This enabled him to stay consistent with outreach even as things, naturally, became more chaotic. It also allowed him to plan snowball moments where he’d posts, emails, and Updates in close succession to amplify the impact of each.
- Invest in your pitch video.Chris noted that continuous founder narration & shots of the actual founders make for the most compelling type of pitch video.
Post-launch Tactics
- Use your personal network to build momentum.Chris spent a considerable amount of time emailing his personal networks, getting on the phone, and meeting with folks in person to pitch Loveseat & the investment opportunity directly. These direct pitches gave him the space to drive home crucial points (ie. you’ll get equity, it’s not a donation, here’s how Wefunder works, etc.).
- Add a banner to every page of your site.Adding a banner to the homepage is solid but Chris went the extra mile and had their “Invest in Loveseat” banner follow the user to every page they visited. This is a great way to target those who are already sold on your biz – your users!
- Secure those reshares.Don’t be bashful about leveraging your network to help social media posts pack more of a punch; ask folks you know to repost what you share on your personal or company accounts.
Tips for Keeping the Momentum
- Highlight your growth.Chris noted that a chart of Loveseat’s growth was the most compelling media asset they used. Wherever you can (as visually appealing as you can), underscore that your company is growing! If revenue isn’t the metric which best captures your growth, then choose one which does. Just be sure to explicitly point out where projections are being used, if applicable!
- Put on your scrappy journalist hat.Chris said that he turned every notable milestone (no matter how minutely notable), into a Wefunder Update – to then be cycled through other channels. Whether it be a record month, getting a huge customer/partner, hitting a certain number of users, expanding to another city, sharing these milestones creates excitement among investors and followers.
- Host a YouTube Q&A.To jumpstart investment traffic after hitting a plateau, Chris hosted a Q&A webinar on YouTube to give people the chance to ask him questions in real time.
Right Before Close Tip
- Fire on all cylinders.Chris ramped it up across the board – with social posts, emails, and, of course, Wefunder Updates, sharing multiple on the final day of the raise. Make sure people don’t miss that closing date!
General Advice from Chris
- Treat it like a marketing campaign.Do ample prep prior to launch – have a game plan. Also, don’t underestimate the importance of visually appealing content. From your pitch page to your social posts, aim for a polished, crisp, professional-looking aesthetic; presentation matters.
- Put in the work.Chris noted that investors don’t materialize out of thin air. Yes, our investor-base will likely contribute to your raise and strategies like paid media can get your pitch in front of a larger audience, but you will still need to draw in a decent chunk of your investors.
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