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Minneapolis-based Mobile Realty Apps has nothing like the public visibility of Twig the Fairy. It’s a software company selling applications to real estate firms and listing services. What the company had that enabled a $1 million equity round earlier this year, Donohue said, is an entrepreneur investors knew and trusted.
“Of our recent round, all of it was from seasoned and accredited investors, and about … 43 percent was from individuals or firms I hadn’t met before the fundraising process,” Kardell said in an e-mail. “To be fair, that remaining 43 percent can pretty much all be traced back in some way to introductions or other help coming from people I already knew.”
Donohue said he walks his clients through a progression of the business relationship that leads to an opportunity to ask for an investment. First there are followers, then friends, and finally fans.
Yes, fans. Fans who might flock to rock ’n’ roll shows, or fondly remember the bands they saw before they started going to bed by 10 p.m. That brings me back to a band called the Suburbs and the power of a fan base.
Fans gave the Suburbs most of the $73,000 on Kickstarter for a new studio record that was released in August. It came 27 years after its last one.
Keyboardist and co-founder Chan Poling said most of the funds raised in the campaign, by far, came from fans, with a small amount from people he described as “fans of Kickstarter.”
“The thing that you do [for donors] on Kickstarter is for a dollar you get a thank you, for $10 you get the download, for $25 you get the CD and T-shirt,” Poling said. “It goes up and up until for $10,000 we will perform for you. I got two of those.
“Isn’t that great?”
It is great — if you have fans with that kind of cash.
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