Let’s talk about Investor Acquisition in online capital raising.
There are over 4.7 Billion potential investors online, but finding the right people to invest in your company among that vast number can seem overwhelming. That is why it is important to understand the various Investor Acquisition (IA marketing) activities you can use to achieve your goal.
Online capital formation (OCF), also known as crowdfunding, refers to the process of raising capital for a business, project, or venture by soliciting small investments from a large number of individuals through the Internet. This is typically done through online platforms or direct listings on company websites that connect entrepreneurs and businesses with potential investors.
There are several types of Online Capital Formation (OCF), including:
- Equity-based, in which investors receive an ownership stake in the business in exchange for their investment
- Debt-based, in which investors lend money to the business and are repaid with interest
- Token-based, similar to equity but the ownership is tracked and managed in a compliant blockchain technology
Online capital formation (OCF) allows businesses and entrepreneurs to access capital from a wider pool of potential investors, and it can also provide a way for individuals to invest in businesses and projects that they are passionate about. Online capital formation can also help businesses to validate their ideas and to test the market before launching a full-scale fundraising campaign. However, it is important to note that crowdfunding may be subject to different regulations and laws in different jurisdictions.
Online capital formation refers to the process of raising funds for a business, project, or venture by soliciting investments from a large number of individuals over the Internet, typically through online platforms such as crowdfunding sites, or online investment platforms like angel networks, or private equity platforms.
Online capital formation can include various forms of fundraising, such as:
- Private Placement Memorandums (PPMs)
- Regulation A+ (RegA+) Offerings
- Regulation CF (RegCF) Offerings
- Regulation D (RegD) Offerings
- Regulation S (RegS) Offerings
- Regulation 45-106 Offerings
- Regulation OM Offerings
- Regulation 708 Offerings
Online capital formation allows companies to reach a wider pool of potential investors and to raise funds more efficiently and cost-effectively than traditional fundraising methods. It also provides investors with more opportunities to invest in startups and early-stage companies, and to diversify their portfolios. However, it is important to note that online capital raising may be subject to different regulations and laws in different jurisdictions. Additionally, online platforms that facilitate online capital raising need to be registered with regulatory bodies and comply with securities laws. Investors should also be aware of the risks associated with investing in start-ups and early-stage companies, as these investments are considered higher risk than traditional investments.
There is much we can learn from other types of marketing, to make sure best practices are applied. One basic principle we feel has been severely overlooked by the entire online capital formation sector is their tactics involve no relationship, and no community building.
We describe this approach like this:
The number of marketing touches it takes to get an online subscriber can vary greatly depending on a number of factors, such as the industry, target audience, and the type of content or offer being promoted. Typically, it may take several touches before a potential subscriber feels comfortable enough to provide their contact information. According to the rule of seven, the average number of marketing “touches” it takes to convert a lead into a sale is 7. And depending on specific audiences, funnels, and strategies, this number may be different.
Investor acquisition (IA) refers to the process of identifying, reaching out to, and acquiring new investors for a company or an investment fund. The goal of investor acquisition is to raise capital, and to increase the number of shareholders in a company or the number of investors in a fund. They do this by first starting in building your community of followers.
Investor Acquisition in online capital raising can take many forms, such as:
- Cold-calling or emailing potential investors
- Networking and building relationships with potential investors
- Participating in roadshows and investor conferences
- Using online platforms and social media to reach a wider audience
- Using investor databases and investor targeting tools to identify and reach out to potential investors
- Create online community of like-minded individuals who support your vision, product, service to make your brand ambassadors to champion your offering
Investor acquisition can be a complex and challenging process, as it requires a deep understanding of the target audience, the industry, and the investment opportunities. Companies or investment firms that are seeking new investors need to have a clear value proposition and a compelling pitch, as well as a strong track record of performance, to be able to convince potential investors to invest. Additionally, they also need to comply with securities regulations and laws when reaching out to potential investors.
At KoreConX our goal is to make sure you achieve yours. We provide an eloquent way for you to access millions of potential followers, clients, affiliates, like-minded individuals who will want to be associated with your company, brand.
What is important is how this is achieved and we believe if you follow the principles of 7 you can achieve this goal.
The number of marketing touches it takes to get an online subscriber can vary greatly depending on a number of factors, such as the industry, target audience, and the type of content or offer being promoted. Typically, it may take several touches before a potential subscriber feels comfortable enough to provide their contact information. According to the rule of seven, the average number of marketing “touches” it takes to convert a lead into a sale is 7. And depending on specific audience, funnels, and strategies, this number may be different.
The strategy is simple.
The process is challenging.
The reward is achieving your goal
Stage 1
Build your community & affinity with your company utilizing the 7 touch process.
Romance the Journey
- Bring relevant information
- Bring relevant value to your audience
- Educate
- Gain trust
- Ask to join the journey
TouchPoints (1-7)
Each type of TOUCH Point is to build a relationship with the USER in building your community. As you build your community, you create an affinity with each of the USER which allows you the opportunity to introduce them to your journey.
- Create Landing Pages/Squeeze Pages
- Create Pop-ups
- Create Target Ads
- Create Investor Persona
- Webinar
- Podcast
- Email Marketing
- Newsletter
- Download (book, information)
Stage 2
After they invested it’s just as important to be reaching out but it needs to be on an even more personal level.
- Thank them, and welcome them to your family, and company
- Meet the Team
- Meet our partners
- Follow us on Social Media
- Progress update
- Family & Friends Program
- Invitation for special programs
- Newsletter
- Engage, keep engaging
- Engage, Engage, Engage
- Enage
Strategy
- Do not call them Investors
- They are:
- Customers,
- followers,
- clients,
- affiliates,
- like-minded individuals who will want to be associated with your company, or brand.
- brand ambassadors
- Investment Strategy for Your Journey
- Business Plan
- Budget
- Sets the tone for all marketing activities
You are now set to engage with IA firms who can assist you with your goal for your company. This ebook provides A-Z all the buzzwords and provides you the reasons why each of these IA tactics is important for your online capital raise. You do not need to use all of them, but it’s important to understand each one, first look at what your company has and how you can complement what you need. At the end of the book we also provide you with a great IA checklist so you can move through the process faster, so you can get started on building your company and your capital raising.
“Nothing in this world is easy, but for those who want to succeed, the journey will be easy”
– Oscar A Jofre