Benefits Archives

The 4 Things You Can’t Do While Marketing a New Reg CF Fund

Posted on April 13, 2022April 14, 2022 by Dawson Russell

This post was originally written by KorePartner Dawson Russell at Capital Raise Agency. View the original article here.

Your Reg CF Marketing has qualified, and it’s time for the next step! As exciting as this is, there are several things to be aware of before throwing any marketing ‘out there.’ It all includes having a marketing professional, the verbiage and images used, and types of marketing. Now let’s take a closer look at each of these marketing aspects of a Reg CF Marketing to know better Reg CF meaning and Reg CF platforms. The following details apply to ‘test the waters’ (TTW) and marketing after your Reg CF qualification.

Use of Improper Verbiage and Images

Marketing in the general sense is to sell a product, sometimes with slight fabrications or indications of potential success or future opportunities. Keep a keen eye to separate Reg A vs Reg CF verbiage. With Reg CF platforms, these are common pitfalls that must be avoided. Did you know something as simple as the word amazing, promising, commit, or golden is considered improper in Reg CF Marketing? These words are over-the-top statements implying merit, interest, offering anything ‘special,’ or a return of any degree. As for images, it is similar in thinking to verbiage. No money, cash registers with overflowing tills, graphs with arrows pointing skyward, and the like are a no-go.

Lacking an Online and Digital Presence

Strategic digital and online marketing plans are no longer an option. Potential investors, especially new generations, will expect a significant digital presence including a well-structured website, social media presence, and more often than ever, a related app. Social media is essential because each follower gained is a potential investor (and their followers will see they’ve followed your Reg CF, which means more potential investors).

Making Investors Search for You

With any marketing plan, you have to stay top of mind. Potential investors will expect ‘face time’ to build a connection with your Reg CF mission and vision. The term ‘face time’ is about communication from you or your executive team through webcasts, online video events, and meet and greets with question-and-answer sessions. After all, they may be investing in your Reg CF, and it’s by far the least you can do.

Do-it-Yourself Reg CF Marketing

While setting up a website is an easy task in our digital world, it does take considerable time and effort to keep up with constant content. As seen above, ensuring your website complies with Reg CF advertising rules and regulations is another task altogether. To get your best return on investment hiring a professional who understands the Reg CF world is worth every penny. Professional marketers can provide the initial setup of a website, regular updates, social media posts, videos, regular email notices, and additional marketing pieces. Plus, it frees up your time to interact with potential investors.

Why Are Brand Ambassadors Valuable Investors?

Posted on April 12, 2022May 9, 2022 by Oscar Jofre

When it comes to raising capital, it’s important to think outside the box. The JOBS Act created a new type of investor a “brand ambassador”, with whom companies should build strong relationships to help the business grow. This community of investors can be extremely valuable for your company, capital raise, or product. Brand ambassadors are often passionate and can connect with others, which can help promote a product or investment opportunity. Because of this, brand ambassadors can often be valuable investors, especially when it comes to RegA+ and RegCF offerings.

The value of brand ambassadors when raising capital

Brand ambassadors can be defined as individuals that have a vested interest in the success of a company or product. They are often passionate about the company and its mission, and they work to promote the company and its products to their friends, family, and online followers. Because of these attributes, they are also valuable investors, as they can help a company raise capital through their investment dollars and in-person or online networks.

They can use their social media platforms to promote the company, which can help drive sales and bring attention to capital raises. However, brand ambassadors themselves can be seen as value investors because of their connection to a brand and their willingness to invest in a company they already believe in. When a brand ambassador invests in a company through RegA+ or RegCF, they show not only their belief in the company but also their faith in its future success.

By investing their own money in the company, brand ambassadors can help it raise the capital it needs to grow and succeed. And as the company grows, so does the value of the brand ambassador’s investment, and they share this excitement and are often more willing to invest in subsequent offerings or drive others to invest. Brand ambassadors are thus extremely valuable investors for companies using RegA+ or RegCF to raise capital.

Increased capital raises with the help of ambassadors

Brand ambassadors help promote a company because of their affinity towards an organization, which can be just as helpful with raising capital. These individuals may often be the first to invest in your capital raise because they already believe in your company.

Ambassadors can also help a company by providing feedback, product testing, and market research to help improve the product before raising capital. Furthermore, they may already have an established relationship with key influencers in the same industry as the company they’re investing in. Some key benefits for companies when brand ambassadors invest in them are:

The brand ambassador brings not only money to the table but also invaluable social capital.
The powerful brand ambassadors can help the company save on marketing costs.
The brand ambassador can be a powerful voice in promoting the company to their networks.
The brand ambassador is invested in the company’s success and future.

While there are many different types of crowdfunding, one that has been particularly successful for early-stage companies is RegCF and RegA+. One of the benefits of raising capital through these methods is that they provide companies with access to a wider pool of potential investors. By seeking to build relationships with brand ambassadors, companies can tap into a new pool of potential investors and benefit from the social capital that brand ambassadors can provide.

The future of capital

Helping with everything from spreading awareness to bringing in new investors, brand ambassadors can be key players in a successful raise. As a good example, Piestro has effectively utilized brand ambassadors using the exemptions. This company was able to raise significant amounts of capital and grow its business with the help of passionate brand advocates.

Brand ambassadors are valuable investors because they have a personal stake in the company and its success. They can be influential in promoting the company to their social media followers, and other potential investors or simply contributing to capital raises themselves.

Tremendous Growth in Investments in Online Startups

Posted on March 23, 2022May 9, 2022 by Oscar Jofre

Online startup investing has become more prevalent in recent years as the JOBS Act exemptions continue to evolve and grow more popular as a way of raising capital for private companies. This is evidenced by the growth seen in the number of new raises occurring each year and the amount of money raised. These trends are incredibly positive for the future development of the online private equity markets. JOBS Act exemptions are incredibly powerful in allowing businesses to raise needed capital while providing investment opportunities to investors that would not have been possible otherwise. This blog will discuss why this is growing in popularity and its benefits.

The Growth of Online Startup Investments

Online startup investing has grown significantly in the past few years, with more money being raised for private companies through an online portal. From 2018 to mid-2021, there was a 327% increase in the number of companies raising funds and a 472% increase in money raised. This trend is only projected to continue in the coming years as online private equity markets grow. This number of new raises is exciting; it will only continue to open new opportunities for investors and companies alike, create jobs, and leave a positive impact on the economy.

There are a few factors that have contributed to this rapid growth. Firstly, the new $75 million and $5 million raise limit that went into effect in March 2021 for Reg A+ and Reg CF has made it easier for companies to raise capital and expand capital raising to companies for whom previous limits weren’t high enough. Looking forward, the increasing number of raises is an incredibly positive trend for the private capital market.

An Increase in Online Business Investment

In 2021, the amount of money raised through Regulation CF surpassed $1 billion, a figure expected to exceed $5 billion raised because it is a promising opportunity for companies and investors. For companies, regulation crowdfunding is an efficient way to raise money as allows companies to retain more control than traditional methods. At the same time, investors can benefit by getting involved in early-stage startups and have the potential to see a return on their investment if the company is successful. This is one of the key benefits of JOBS Act exemptions; no longer are the everyday investor locked out of deals in the private market. Regulation CF offerings are open to non-accredited and accredited investors alike, removing the barrier to entry in this space.

While the number of raises is quickly increasing, growth in the amount of money raised from the beginning of 2018 to the first quarter of 2021 is similarly astonishing. The amount of capital raised in this period increased by 627%, from $15.5 million in 2018 to $112.8 million in 2021.

Equity crowdfunding is proving to be a promising opportunity for companies looking to raise capital and for investors looking to get involved on the ground floor of young startups. The steady increase in the number of raises and amount raised is an extremely positive indicator for future growth in the online private equity markets. For these reasons, we expect the amount invested in online startups to continue through 2022 and beyond.

Additional knowledge sources

https://kingscrowd.com/online-startup-investments-have-grown-by-470/

What are the Benefits of a Cap Table in Capital Raising?

Posted on March 9, 2022May 9, 2022 by Oscar Jofre

If you’re running a business, then you know that keeping track of your finances is essential. And if you’re looking to raise money from investors, then you’ll need to create a cap table. But what is a cap table, and what are the benefits of having one? In this blog post, we’ll answer those questions and more. So keep reading to learn more about the benefits of a cap table for your business.

What is a cap table?

A cap table is a document that records all information regarding shareholders and the equity they own in a company. The purpose of a cap table is to provide transparency to shareholders, investors, and employees about the company’s current and future equity. A well-managed cap table can save time and can benefit companies and investors. The benefits of using a cap table include:

Records the voting rights of each shareholder.
It documents when shares are issued and diluted.
It keeps track of all equity holders, past and present.
It records who owns what percentage of the company.
Increases transparency among shareholders and investors.
Quicker and more efficient transactions due to up-to-date information.
It shows how much money each shareholder has invested in the company.

There are several ways in which a company can benefit from having a well-managed cap table. A cap table can help founders keep track of who owns what percentage of the company, allowing for transparency among shareholders and investors. This is essential Information when negotiating with investors or preparing for a capital raise.

Importance of Cap Tables

A well-managed cap table is an essential tool for any company, especially when looking to raise capital. A cap table allows transparency and clarity between shareholders, founders, and investors. Investors need to quickly and easily understand the company’s current equity structure to make informed decisions about investing in a capital raise. With the continual growth of regulations like A+ and CF, managing a cap table is crucial for success.

Improve Cap Table Management

When a company has already raised money from investors, the cap table becomes an even more important document. KoreConX’s cap table management software can help keep track of all shareholders and their respective equity. The software can also help manage voting rights and keep track of who invested when and how much. This information is crucial for companies as they undergo funding rounds because it allows them to be transparent with potential investors. Investors want to know who is in charge, what voting rights each person has, and what kind of leverage they have when negotiating. Having all of this information readily available in the KoreConX all-in-one platform will help avoid any delays in the investment process.

A well-organized and up-to-date cap table is an essential tool for any company looking to raise capital. It can help simplify the process for both the issuer and the investor and ensure that everyone is on the same page about ownership and valuation.

Tag: Benefits