Tag: Investor Acquisition

Investor Acquisition in online capital raising

Posted on by Oscar Jofre

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

 

Why is building a community important when raising capital?

Posted on by Oscar Jofre

The private capital markets are very dynamic, and the advent of online investing, also known as online capital formation, marks a pivotal shift in how companies approach capital raising. This shift necessitates a focus not just on attracting investors but on building a community around the business. The JOBS Act regulations have played a significant role in this transformation, enabling companies to tap into a vast pool of 233 million Americans. We will review what is the critical importance of cultivating a community of like-minded individuals and companies who share a passion for your business. As we navigate the nuances of utilizing the JOBS Act Regulations (RegCF, RegD, and RegA+), it becomes evident that building a community is not just a strategy but a necessity for accessing capital and creating a sustainable growth trajectory.

The Impact of Community in Capital Raising

The power of community in the context of rraising capital cannot be overstated. A well-engaged community can serve as a formidable force in spreading the word, creating a viral effect that traditional marketing efforts might not achieve. When a company introduces a new product line or announces a significant hire, having a community means there’s an already engaged audience ready to amplify the message. More importantly, this community becomes a credible voice to potential investors. Testimonials from community members who have invested can resonate more authentically than any marketing pitch, providing firsthand accounts of why they chose to support the business.

Challenges in Building a Community

Cultivating a community is no small feat and presents several challenges. Leadership from the CEO down is crucial; this initiative cannot be viewed as an outsourced function but rather as an integral part of the company’s DNA. Commitment to community-building must be unwavering, not just for the duration of a capital raise but as a perpetual aspect of the company’s operation. This approach requires time, resources, and a genuine desire to engage and grow with your community.

Steps to Building Your Community

Define Your Core Values: Start by articulating the core values and mission of your company. These will be the rallying points around which your community gathers.

Engage Through Social Media: Utilize social media platforms to share your story, updates, and milestones. Be consistent and authentic in your engagement.

Create Value-Driven Content: Produce content that educates, entertains, or informs your audience, fostering a sense of belonging and shared purpose.

Leverage Email Marketing: Keep your community informed and engaged with regular updates, insights, and opportunities to participate in your journey.

Host Community Events: Whether virtual or in-person, events can be powerful tools for strengthening community ties and encouraging direct interaction.

Encourage Feedback: Open channels for your community to share their thoughts, feedback, and suggestions. This two-way communication is vital for community health and growth.

Show Appreciation: Acknowledge and reward your community’s contributions and support. Recognition can go a long way in fostering loyalty and advocacy.

Building a community in the context of raising capital under the JOBS Act regulations is a strategic imperative that transcends mere financial transactions. It’s about creating a sustainable ecosystem where shared passion and collective support fuel business growth. As companies navigate this journey, understanding the nuances of community engagement, the commitment required, and the strategies for success is paramount. Whether your company operates in the B2C, B2B, or B2B2C space, the principles of community building apply universally. In embracing this approach, companies not only secure the capital they need but also cultivate a loyal base of advocates who will be instrumental in their long-term success. Remember, the strength of your community reflects the strength of your business; invest in them, and they will invest in you.

How Do I Build a Community for My Company?

Posted on by Oscar Jofre

What is a community? The word can be defined as “a body of persons of common and especially professional interests scattered through a larger society” or “a group of people with a common characteristic or interest living together within a larger society.” Putting this into a bit more context, picture a beaver in the forest, building a dam. This seemingly simple, instinctual event has a profound effect on the surrounding area. The dam forms a pond, which creates the perfect habitat for a diverse range of animals, insects, and other organisms, while also improving the water conditions. 

 

This beaver is much like an entrepreneur building a business. As the business grows, it provides employment opportunities, creates a network of suppliers and partners, develops relationships with customers, and is supported by shareholders. They all play a crucial role in the success of your business. 

 

By nurturing these relationships, especially in today’s highly competitive business environment, this community can help increase engagement, loyalty, and interest in your company, which can translate into more investment and business opportunities down the road.

 

Recognizing the Benefits of a Strong Community

 

From customers to employees and suppliers, building a community around your company can bring numerous benefits. A thriving and engaging community can create:

 

  • Increased customer or employee loyalty: When customers and employees feel a sense of belonging and loyalty to your brand, they are more likely to remain loyal for longer. This can result in higher rates of retention, as well as increased referrals and advocacy.
  • Improved engagement with stakeholders: A thriving community can help you engage with key stakeholders such as investors, partners, and suppliers. This can help to foster stronger relationships over time, leading to better deals and collaborations.
  • Increased brand reputation: A community of loyal customers or employees can promote your brand integrity and trustworthiness, which is essential for building a successful business.
  • More growth opportunities: With a strong network of loyal loyal customers and employees, you’ll have a larger pool of potential buyers or investors when you are looking to grow.
  • A foundation for investors: Ultimately, when you’re looking to raise capital or attract investors, having a strong community of engaged stakeholders around your company can be an invaluable asset by providing evidence of your brand’s trustworthiness and potential. These stakeholders can also become valuable investors that share in your vision for the future.

 

Ultimately, cultivating this community requires transparency and compliance to build trust and instill confidence. But how do you go about building a community for your company? 

 

6 Tips for Building a Community

 

1. Understand Your Audience

 

The first step in building a community is to understand your audience. Who are the people you want to attract and engage with? What are their needs, wants, and interests? What motivates them to invest in your company? By creating customer personas and conducting market research, you can get a better understanding of your target audience. This can help you tailor your messaging, content, and engagement strategies to better resonate with your community.

 

2. Focus on Transparency and Communication

 

Transparency and open communication are essential ingredients for building a strong community. Shareholders, employees, and customers all want to feel like they have a voice and that their concerns are being heard. This is especially important when it comes to managing shareholder relationships. To build trust and transparency, consider implementing regular communication channels like newsletters, social media updates, and webinars. Make a point of responding to customer and shareholder feedback promptly and thoroughly.

 

3. Leverage Technology

 

Technology can be a powerful tool in building and managing your community. Consider investing in a customer relationship management (CRM) system to track and manage your customer interactions. This can help you identify patterns and trends in customer behavior, enabling you to tailor your messaging and engagement strategies to better resonate with your community.

Social media platforms like LinkedIn, Facebook, and Twitter can also be powerful tools for building and engaging with your community. Regularly update your social media channels with relevant content, respond to customer feedback and comments, and use social media analytics to track engagement and identify opportunities to better connect with your community.

 

4. Create Meaningful Content

 

Creating high-quality, engaging content is another key element in building a community. Content can come in many different forms, including blog posts, videos, webinars, eBooks, and more. The key is to create content that is tailored specifically to your target audience and resonates with them on an emotional level. This will help you build relationships and foster loyalty among your customers, employees, and shareholders.

 

5. Foster and Incentivize Engagement

 

Engaging your community is an important part of building relationships and developing loyalty. Consider running contests, giveaways, or other promotional activities to incentivize engagement. You can also create loyalty programs or rewards systems to further reward customer engagement.

 

6. Gather Around a Cause

 

When building a strong community creates a sense of purpose around your company. Find something that your customers, employees, and shareholders can all rally behind. This should be something bigger than just making money – it could be related to sustainability, philanthropy, or another cause the community can get behind. By giving people something to believe in, you can create a sense of shared identity that will bring your community together. 

 

When it comes to raising capital, you should also focus on creating experiences that make investors feel appreciated and valued. For example, you could offer exclusive investor-only events or create a private investment platform where invited investors can access exclusive content about your company and its opportunities. 

 

Regardless of how you approach it, building a thriving community around your business is essential to growing and scaling effectively. This will lead to increased loyalty, greater investment opportunities, and higher long-term returns. By taking these key steps to develop a strong community around your business, you’ll be well on your way to achieving your capital-raising goals.

 

What is Affinity Marketing?

Posted on by Oscar Jofre

Affinity marketing is an effective way to increase brand recognition and reach a larger target audience, especially when it comes to raising capital. By leveraging existing connections with customers, companies can improve their visibility and attract more investors. With the right strategy and tools, affinity marketing can be a powerful tool for businesses looking to expand their customer base and create trust between parties. 

 

Affinity marketing is a type of marketing strategy that focuses on creating relationships between a company and its customer base. This connection could be due to things like shared values, such as environmental sustainability or ethical labor practices. The main goal of this approach is to create loyalty and increase brand recognition. The idea behind affinity marketing is that a brand can appeal to an audience that is connected by brand loyalty, shared values, or other aspects that would make them like to make a purchase, return as a customer, or even become investors. 

 

Using the JOBS Act and Affinity Marketing

 

With Regulations A+ and CF, affinity marketing is an effective way to raise capital. By leveraging existing connections with customers, companies can reach a larger target audience and increase their chances of success. When beginning new capital-raising efforts, affinity marketing promotes a sense of trust and credibility.

 

Whether you have had several raises in the past or this is your first capital raise, affinity marketing is an effective way to reach a larger target audience. Leveraging your existing connections can help you gain exposure and attract more investors because people trust the brands they already know. By leveraging this group of investors, you can improve the visibility of your company and reach a larger pool by utilizing these people as a type of brand ambassador for your marketing.

 

Tips For Implementing Affinity Marketing Effectively

 

When implementing an affinity marketing strategy, there are certain steps you should take to ensure success. Here are some tips for using this type of marketing effectively:

 

Identify your target audience: Identify a customer base that shares similar values or had displayed brand loyalty. This will help you create a more tailored marketing plan that is specific to the target audience.

 

Set clear objectives and goals: Setting clear, measurable objectives and goals will help ensure that your affinity marketing strategy is successful. It will also allow you to track progress and make necessary adjustments as needed.

 

Communicate with your partner: Establishing a strong relationship with your affinity marketing partner, like an investor acquisition firm, is essential for success. Communicating regularly and discussing expectations, challenges, and successes will help foster collaboration and ensure successful outcomes.

 

Measure results: Tracking metrics such as customer acquisition rate, customer engagement rate, or return on investment (ROI) is important to determine the success of your affinity marketing strategy.

 

Affinity marketing is an effective way to increase brand recognition and reach a larger target audience. Especially when raising capital. By leveraging existing connections with customers, companies can reach more potential investors and create trust between parties. Additionally, tracking specific metrics can help measure success and ensure that you are meeting your goals. With the right strategy and tools, affinity marketing can be an effective way to increase brand visibility and reach a larger pool of investors.

 

4 Ways to Build Better Shareholder Relationships

Posted on by Oscar Jofre

As a business owner, you know that communication is key to success. But when it comes to shareholders, shareholder communications can sometimes take a backseat. They’ve already invested, so customer communications to generate revenue often steal the show. However, it’s essential to keep shareholders in the loop since they own a piece of the company and are entitled to know what you’re doing with it. After all, the more involved they are, the more willing and able they will be to help, reinvest, or promote the brand. So how can you build strong relationships with your shareholders? While email has been the go-to method for shareholder communication in the past, other options may be more effective in building relationships with your shareholders. Here are four ways to enhance the way you communicate with shareholders, and a good communication strategy will make use of several of these strategies.

 

1. Webinars

Webinars are a great way to connect with shareholders and provide them with valuable information about your company. You can use webinars to give updates on your progress, share financial information, and answer questions from shareholders. Plus, webinars allow shareholders to get to know you and your team better and help put a face to the company. Since webinars can feel like you’re talking with rather than just to your audience, they can help build a powerful connection and establish trust, as well as give you valuable feedback from people who care about the company.

 

2. LinkedIn Page

Having an updated and informative LinkedIn page is a great way to connect with shareholders online. Use your page to share company updates, industry news, and other relevant information that shareholders might find useful. You can also use your LinkedIn page to answer shareholder questions and build relationships with them. By maintaining an active presence on LinkedIn, you can show shareholders that you’re committed to keeping them updated on your company. By providing value on your LinkedIn page, you can also attract new shareholders who may be interested in investing in your company.

 

3. Podcasts

Podcasts are a great way to share detailed information about your company with shareholders. You can use podcasts to give updates on your progress, share financial information, and answer questions from shareholders. By providing valuable information in your podcasts, you become an industry influencer by providing this information and can more easily build trust with shareholders that are listening. You can also interview other industry leaders whose thoughtful insights into your industry your audience may find informative.

 

4. Shareholder Management Tools

After your successful RegA+ or RegCF offering, you can anticipate many new shareholders to welcome on board. As shareholders, they have a vested interest in how your company performs. Thankfully, shareholder management is streamlined when you eliminate Excel sheets, CRM, or email. The Shareholder Management solution from KoreConX sets the new standard, empowering you and shareholders with transparency, compliance, and confidence. Keep shareholder documents secure and engage shareholders with portfolio management tools that allow them to see detailed information about their investments. To learn about the many great features of the KoreConX platform, get in touch with our team for a demo or any additional information. 

 

The most important thing you can do to build relationships with shareholders is to maintain communication with them. Whether you’re using email, webinars, podcasts, or blogs, make sure to keep shareholders updated on your progress and answer any questions they might have. By maintaining regular communication with shareholders, you can show them that you’re committed to keeping them informed and building trust with them.

KorePartner Spotlight: Richard Heft, President of Ext. Marketing

Posted on by Oscar Jofre

Richard Heft is the President at Ext. Marketing, a full-service marketing firm that helps companies attract potential investors to apply their marketing strategy and achieve their communications objectives. Richard has over 20 years of experience in the marketing and communications industry, focusing on the financial services sector. In 2021, Richard and his co-author published The Ascendant Advisor, a book about marketing and content strategies for advisors to grow their businesses. 

 

We recently sat down with Richard to discuss his company, experience, and partnership with KoreConX.

 

Q: Why did you become involved in this industry?

A: Ext. has spent almost a decade and a half helping financial services firms translate their business objectives into cutting-edge marketing campaigns for the retail and institutional spaces. During this time, we also began to recognize that we would truly be a full-service marketing leader if we could help our clients reach a limitless number of online retail investors through various social channels. The power of these retail investors is that they not only have an almost unlimited appetite to consume information online, but they are also able to invest how they want, when they want, and where they want on the increasing number of self-managed platforms. We launched Ext. Digital to help companies in virtually all industries identify their target retail audience, create messaging that will resonate with that audience, and tailor their conversion funnel to ensure their brands and investment offerings stand out in a somewhat crowded marketplace.

 

Q: What services does your company provide for offerings?

A: We offer end-to-end digital marketing strategies, content creation, media activation, and ad buys. We also provide access to our proprietary financial influencer network to help amplify the audience for our client’s news and updates.

 

Q: What are your unique areas of expertise?

A: Beyond our unparalleled content creation and transparency regarding their ad spend, our clients benefit from our constant A/B testing & optimization approach to ensure their media dollars are continuously put to best use.

 

Q: What excites you about this industry?

A: There is a lot that excites me about this industry! I strongly believe that, even when the global economy looks uncertain, there is a massive opportunity for companies looking to raise capital to reach the right people with their stories. And the people they are reaching have never been more motivated and able to invest in the opportunities that appeal to them.

 

Q: How is a partnership with KoreConX right for your company?

A: KoreConX has always been an excellent, reliable partner to Ext. Digital. We have been thrilled to introduce our clients to KoreConX’s holistic platform, given the trust we have in Oscar, Peter, and the entire KoreConX team, and we have worked with many companies that we know are going to be leaders in their respective industries as a result of introductions made by KoreConX.

 

Q: Anything else you would like to add about RegA, RegCF, or any other topic you might find relevant for your company, our partnership, and the ecosystem you are part of?

A: I encourage any company exploring a capital raise through a Reg A, Reg D, or Reg CF issue to find partners they can trust over their entire journey. I firmly believe Ext. Digital is the ideal digital marketing partner for any company looking to take the next step in its journey.

 

It All Started with the JOBS Act

Posted on by Oscar Jofre

This month, we launched our newest series, KoreTalkX, during which we have hosted exciting, one-on-one conversations with industry experts to expand the knowledge base on capital raising in the private markets. We’re recapping the episodes so far and look forward to the next live event on Tuesday, May 31st, when Dr. Kiran Garimella (CTO, KoreConX) and Andrew Bull (Founding Memeber), Bull Blockchain Law) discuss digital securities. 

 

KoreTalkX #1: 10th Anniversary of the JOBS Act

In this conversation, David Weild IV, Father of the JOBS Act, and Oscar Jofre discuss the importance of the JOBS Act concerning small businesses and entrepreneurship. An important focus has been how the Act has helped increase innovation and expand access to capital for smaller companies, which is crucial for paving a brighter future.

 

Listen to the full episode on Spotify, Amazon, or iTunes!

 

KoreTalkX #2: How Can ESG Reshape Capital Raising?

This talk between Peter Daneyko and Paul Karrlsson-Willis, CEO of Justly Markets, discusses impact investing and ESG (environmental, social, and governance) criteria. Since the JOBS Act has allowed more people to invest in companies and given rise to the popularity of crowdfunding and investing for non-accredited investors, they discuss how many people are investing in businesses with missions they’re passionate about. 

 

Listen to the full episode on Spotify, Amazon, or iTunes!

 

KoreTalkX #3: How to Start and Manage a Cap Table?

In this discussion, Amanda Grange and Matthew McNamara, Managing Partner at Assurance Dimensions, talk about starting and managing a cap table. A primary focus is how the SEC compliance guidelines protect companies and how a good transfer agent will help a company stay within those guidelines. They also talk about how a well-managed and structured cap table can streamline a raise.

 

Listen to the full episode on Spotify, Amazon, or iTunes!

 

KoreTalkX #4: Thoughts on Investor Acquisition

Jason Futko and Tim Martinez, co-founder of Digital Niche Agency, talk about how to acquire investors for your startup. They highlight how important it is to have a good strategy before launching your campaign and how companies have a powerful opportunity to transform investors and customers into brand ambassadors. Additionally, they suggest entrepreneurs be prepared for a long marathon to achieve success and how to help achieve this in today’s climate.

 

Listen to the full episode on Spotify, Amazon, or iTunes!

 

How Does Social Media Impact RegCF Offerings?

Posted on by Oscar Jofre

Reg CF allows companies to raise up to $5 million through an SEC-registered intermediary.  Since increasing this limit from $1.07 million in 2021, private companies have raised over $1 billion in Reg CF offerings. This highlights Reg CF’s incredible success in opening the doors to capital for these issuers. For many of these offerings, social media is a key component to success by increasing investor awareness and conducting a successful offering.

 

Social Media’s Impact on Reg CF

 

Social media is essential for companies looking to make a Reg CF offering. It can build awareness and interest among institutional and retail investors and help generate traffic to their offering’s listing on a funding portal or the broker-dealer who hosts the offering. It can expand your crowdfunding campaign’s reach using social tools to raise more money.

 

As soon as companies file their Form C with the SEC, they can begin to communicate outside the funding platform about their offering. However, they must be careful about what they say. They are limited to communications that don’t mention the terms of the offering and “tombstone” communications. Issuers can continue marketing their product or service as usual, as securities regulations understand that the issuer still is running a business and trying to generate a profit. After the Form C has been filed, issuers can also increase the amount of marketing materials they create, as long as they follow SEC guidelines. Issuers are also subject to anti-fraud rules, even in non-terms communications.

 

Capitalizing on Campaigns

 

Building awareness and interest in your Reg CF offerings using social media, you reach investors who may have been unaware of opportunities to invest. Thanks to Reg CF,  startups and established companies alike can get started fundraising quickly with lower initial costs than traditional methods of raising capital. When combined with social media, the result is an effective way to get the word about the raise to many people hoping that they turn into an investor.

 

It has been made clear that social media and mobile marketing are necessary parts of Reg CF offerings. Social media marketing is an increasingly important part of any company’s digital strategy, so having these platforms as part of Reg CF efforts will give issuers the best chance for success with campaigns. It also helps businesses target their current audience to invest in their offering.

 

Social media is an excellent tool for companies to use when making Reg CF offerings. Whether you are looking to raise more money or get the word out about your company, social media can be used in various ways that will help your business grow and succeed with Reg CF.

KorePartner Spotlight: Jonathan Stidd, Co-Founder and CEO of Ridge Growth Agency

Posted on by Oscar Jofre

With the recent launch of the KoreConX all-in-one platform, KoreConX is happy to feature the partners contributing to its ecosystem. 

During the capital raising journey, many components must be in place to increase the potential for success. One of these critical factors is ensuring that a raise is marketed to get an issuer’s message in the right place to get in front of the right eyes. 

Ridge Growth Agency is an expert in equity crowdfunding and direct-to-consumer marketing, dedicated to building the brands of tomorrow. The company positions brands to introduce them to new, high-value customers and investors. When the company started, it was first a digital marketing agency that helped eCommerce brands scale online. Jonathan Stidd said, “When we got introduced to equity crowdfunding, we quickly realized we could apply these same tactics to acquiring investors online.” Since introducing this service, the agency has helped its clients raise over $330 million through Regulation A+ offerings. 

Ridge Growth Agency provides a wide range of digital marketing services for its clients. These include website design and development; newsletter and sponsored content creation; paid media management; budgeting, planning, and forecasting; video production and editing; graphic design; copywriting; and email marketing. Jonathan feels this is what sets them apart from other firms offering similar services, saying, “nobody seems to offer [them all].”

After receiving his education in economics, Jonathan himself entered into this field and has since developed expertise in management consulting, venture capital, entrepreneurship, and the growth strategies to launch and scale brands. He feels passionate about this industry because of the ability to “help cutting-edge companies raise capital in a relatively new way!” Additionally, he feels that a partnership with KoreConX was just the right fit. He said: “as a technology provider for the pipe system of these raises, KoreConX is a crucial tool to move the investors through the funnel.”

KorePartner Spotlight: Scott Allen, CEO of InvestAcq

Posted on by Oscar Jofre

With the recent launch of the KoreConX all-in-one platform, KoreConX is happy to feature the partners contributing to its ecosystem. 

Scott Allen is the CEO of InvestAcq, a firm of investor acquisition specialists. For companies looking to raise capital in the private markets, InvestAcq identifies the best potential investors for RegA+, RegCF, and RegD 506(c) raises to effectively target investors and attract them to the offering. The firm’s specialty is working with companies in the medical industry, such as biotech, medtech, pharma, and life sciences, or those who intend to use RegA+. 

We took some time to speak with Scott to learn more about himself and his firm. Here’s what he had to say. 

 

Q: Why did you become involved in this industry?

 

A: I’ve worked in and with startups and entrepreneurs most of my career. I believe in entrepreneurship—it’s the lifeblood of our economy. And I know startups need access to capital. I’ve seen the downsides of the whole cycle: insufficient capital, insurmountable debt, VCs taking control of companies, spectacular IPOs that went bust within a year.

So when my long-time friend, client, and collaborator Stephen Brock, founder of Medical Funding Professionals, told me about Regulation A+ and his vision for bringing it to the medical innovation sector, I was in. It addresses perhaps the biggest need, in probably the highest impact industry. What could be better than helping put money to good use saving lives and improving quality of life?

 

Q: What services does your company provide for RegA offerings?

 

A: We are investor acquisition specialists. We use the latest marketing techniques to help companies find the best potential investors for your offering, effectively tell them your story, and make it as easy as possible for them to invest.

Our company offers a complete multi-channel integrated marketing solution, including marketing strategy, web design, email marketing, content marketing, social media, digital advertising, public relations, and investor relations. We particularly focus on the idea of “Sell the story, not the stock” — we see strong brand marketing as the foundation of everything else. Research shows that strong brands achieve a higher return on ad spend and ultimately higher market caps. In a Regulation A+ offering, telling the company’s story well attracts the investors you want—impact investors who believe in your vision and will become advocates for your business.

 

Q: What are your unique areas of expertise?

 

A: One thing that’s unique to our firm is our experience in the healthcare sector. In addition to the SEC and other regulatory compliance issues, we also have to deal with FDA regulations and guidelines. While compliance is still ultimately up to the issuer and their attorneys, having a communications team that’s experienced in those issues reduces a lot of back-and-forths, and really speeds up the process. We even occasionally catch things that the attorneys miss, so having another set of experienced eyes on that content adds an extra layer of protection.

Personally, I have over 25 years of experience in digital marketing and several more in traditional marketing before that. While I have a broad range of experience, my unique area of expertise is social media, and more broadly, virtual business relationships. I got into social media in 2002, before it was even called social media. I co-authored the first book on social media marketing, The Virtual Handshake: Opening Doors and Closing Deals Online, and have trained or consulted with hundreds of clients over the past 19 years.

 

Q: What excites you about this industry?

 

A: Five things:

1. Getting capital in the hands of people with products that can impact people’s lives and change the world. They can only have that big impact if they can get the money they need to complete their research and development, go to market, and scale.

2. Helping those innovators stay in control of their company so they can execute their vision.

3. Making sure those founders, early investors, and early hires reap fair rewards for their vision and efforts. To me, late money should never be as valuable as early sweat.

4. Helping CEOs stay focused on executing their business plan. With traditional angel / VC / private equity, the CEO basically has to take 6 months to a year away from their company to focus on fundraising. “Run your raise, or run your company. You can’t do both.” A typical VC round requires 100+ investor meetings, on average, plus countless hours of due diligence, emails, and other support. With Reg A+, much of the activity is shifted to an investor acquisition firm like us. And much of the time the CEO spends is leveraged — one webinar to hundreds of potential investors, one video that lasts for months and every potential investor will see — not hundreds of one-on-one meetings.

5. Reg A+ is good for investors. GREAT for investors. We believe everyone should be able to invest in early-stage and growth-stage companies. Until recently, most people could only invest in companies listed on the public stock exchanges. Main Street investors couldn’t get in on IPOs. Now nearly any investor can get in on innovative companies before they go public. It’s your money—you should be able to invest it where and how you want—have an impact on the world with how you choose to invest.

 

Q: How is a partnership with KoreConX the right fit for your company?

 

A: KoreConX is the industry leader for private market fintech. It’s been years in development and has more real-world testing than any other solution.

Also, as a marketer, I love the fact that KoreConX allows us to control the investor relationship from start to finish. We have visibility into every step of the process that you don’t get on the equity crowdfunding platforms.

Most of all, though, KoreConX has been an enthusiastically proactive partner; joining us for sales calls, building custom branded demos for our prospects, promoting us through the partner program, and even working with us to put on a KoreSummit focused on our industry niche.

 

Watch Scott’s KoreSummit panel on Investor Acquisition in Medtech and Life Sciences here.

 

What is Investor Acquisition?

Posted on by Oscar Jofre

If you’re a company that is in the process of raising funds for your business, you’re likely looking to do so with the help of investors. By trading a piece of your company in exchange for some much-needed capital, you can fund your ideas and the growth of your business. With Regulation A+ opening up the investor pool to include those who would not be regularly included in a traditional IPO, it is essential to choose the right investors with whom you are going to grow your business. As investors become shareholders that often have some kind of say in the company, it will be important to choose investors that will aid you on your journey to grow your company. But how exactly do you find the right investor for you and your company’s vision?

 

Investor acquisition is targeting the best investors for the offering based on their demographics. Are you trying to raise money from your customers or people with similar behaviors? Are you targeting investors based on location, age, or other demographics? With investor acquisition, it allows companies to find and target the investors that will be best suited for the offering. If companies are targeting the investors that are most likely to invest, less time is wasted and more money is raised by eliminating the need to interact with those who aren’t going to invest.

 

Additionally, through investor acquisition, you can turn current customers into investors and investors into customers. With the addition of RegA+ to issuers’ toolbox, the ability to raise money from customers is now easier than ever. The customers who already know and support you can turn into important advocates for your company, which in turn can entice either more investors or customers to support your company.  Through RegA+, investors are not required to be accredited, so everyday people now have the opportunity to invest in companies that they believe in and support.

 

Once you’ve found investors to invest in your offering, keeping proper records of them will be essential to long-term success. Issuers need to manage their cap table, maintain investor relations, perform securities transfers in a compliant way, transfer agent, and more. With the KoreConX all-in-one platform, companies can securely manage who their investors are, issue shareholder certificates, and maintain their cap table in real-time, as changes occur. For investors, they can securely manage their portfolio of investments, receive important company information, and vote on company matters. With the platform, companies can maintain compliance and manage their information seamlessly.

 

Once you’ve decided to raise capital for your company, the next most important should be who you are going to raise the money from. With the help of investor acquisition, you can analyze information about your target so that you can best understand their behavior and what will get them to invest. Making smarter decisions about who you want investment from will help your company grow in the direction that you see best.

Managing Your Investments in Private Companies

Posted on by Oscar Jofre

For investors, investing in private companies can be a beneficial way to diversify their investment portfolios. Whether the investment was made through private equity or RegA+, proper management can contribute to long-term success. However, once the investment is made, investors need to ensure that they are correctly managing their shares. With this in mind, how should investors manage their investments once they have been made?

 

Investments made in private companies can often come with voting rights. Being a part of company decisions is an important aspect of being an investor and helps to elect company directors and resolve issues. Investors exercising their voting rights can be a major aspect of managing their portfolio.

 

Whether information is provided directly to the investors by the company or through a transfer agent, as companies release reports and other key information, shareholders should maintain current knowledge of the information. Understanding the company’s direction and changes that are occurring can give investors a picture of the future so they can determine how their shares will affect their portfolio. The investor should also know where the data can be found so that they are easily able to access and assess it.

 

Additionally, investors should monitor the liquidity of the shares. Since some private company shares can be traded in a secondary market, understanding the value and the option to trade is important for investors. If they know how much their shares are worth, and they have the ability to sell them, investors can freely trade their shares. This is key if they decide that they no longer want to be a shareholder in a particular private company.

 

However, for investors who own shares in multiple different companies, managing this information can become a burdensome task. With an all-in-one platform that incorporates portfolio management for investors, KoreConX streamlines and simplifies the process. KoreConX Portfolio Management allows investors to manage their investments from a centralized dashboard. Investors are easily able to see the shares that they own in each private company they’ve invested in. Through the platform, investors can access critical company information and performance data in one place, eliminating the need to remember where each piece of information is kept. Investors are also notified of upcoming shareholder meetings and can exercise their voting rights through the KoreConX platform. When companies and investors utilize the KoreConX platform, they can achieve higher success rates by maintaining compliance with necessary regulations. Utilizing KoreConX Portfolio Management is a powerful tool for investors to make informed decisions regarding their investments.

 

When dealing with private company investments, it is incredibly important that investors properly manage their portfolios. Remaining up-to-date on company decisions and performance can help them plan for the future of their shares while allowing them to make decisions to increase the success of their investments. When investors understand their voting rights, company developments, and the liquidity of their shares, they can be an active participant in their financial success.

How Can a Company Raise Capital?

Posted on by Oscar Jofre

For companies looking to raise capital, there are many different options. While not every option may be best suited for every company, understanding each will help companies choose which one is best for them.

 

In the early stages of raising capital, seeking investments from family and friends can be both a simple and safe solution. Since family members and friends likely want to see you succeed, they are potential sources of funding for your company. Unlike traditional investors, family and friends do not need to register as an investor to donate. It is also likely that through this method, founders may not have to give up some of their equity. This allows them to retain control over their company. 

 

Angel investors and angel groups can also be a source of capital. Angel investors are wealthy individuals that meet the SEC requirements of accredited investors, who invest their own money. Angel groups are multiple angel investors who have pooled their money together to invest in startups. Typically, angel investors invest capital in exchange for equity and may play a role as a mentor, anticipating a return in their investment. 

 

Venture capital investors are SEC-regulated and invest in exchange for equity in the company. However, they are not investing their own money, rather investing other people’s. Since venture capital investors are trying to make money from their investments, they typically prefer to have some say in the company’s management, likely reducing the founders’ control. 

 

Strategic investors may also be an option for companies. Typically owned by larger corporations, strategic investors invest in companies that will strengthen the corporate investor or that will help both parties grow. Strategic investors usually make available their connections or provide other resources that the company may need. 

 

For some companies, crowdfunding may be useful for raising funds. With this method, companies can either offer equity or rewards to investors, the latter allowing the company to raise the money they need without giving up control of the company. Through the JOBS Act, the SEC passed Regulation A+ crowdfunding, which allows companies to raise up to $75 million in capital from both accredited and non-accredited investors. Crowdfunding gives companies access to a wider pool of potential investors, making it possible to secure the funding they need through this method. 

 

Alternatively, Regulation CF may be a better fit. Through RegCF, companies can raise up to $5 million, during a 12-month, period from anyone looking to invest. This gives companies an important opportunity to turn their loyal customers into shareholders as well. These types of offerings must be done online through an SEC-registered intermediary, like a funding portal or broker-dealer. In the November 2020 update to the regulation, investment limits for accredited investors were removed and investment limits for non-accredited investors were revised to be $2,200 or 5% of the greater of annual income or net worth. It is also important to note that now, companies looking to raise capital using RegCF are permitted to “test the waters,” to gauge interest in the offering before it’s registered with the SEC. The SEC also permits the use of SPVs in RegCF offerings as well. 

 

Regulation D is another method that private companies can use to raise capital. Through RegD, some companies are allowed to sell securities without registering the offering with the SEC. However, companies choosing to raise capital through RegD must electronically file the SEC’s “Form D.” By meeting either RegD exemptions 506(b) or 506(c), issuers can raise an unlimited amount of capital. To meet the requirements of the 506(b) exemption, companies must not use general solicitation to advertise securities, can raise money from an unlimited number of accredited investors and up to 35 other sophisticated investors, and must determine the information to provide investors while adhering to anti-fraud securities laws. For 506(c) exemptions, companies can solicit and advertise an offering but all investors must be accredited. In this case, the company must reasonably verify that the investor meet the SEC’s accredited investor requirements  

 

Companies can also utilize direct offerings to raise money. Through a direct offering, companies can issue shares to the company directly to investors, without having to undergo an initial public offering (IPO). Since a direct offering is typically cheaper than an IPO, companies can raise funding without having major expenses. Since trading of shares bought through a direct offering is typically more difficult than those bought in an IPO, investors may request higher equity before they decide to invest. 

 

Companies can offer security tokens to investors through an issuance platform. Companies should be aware that these securities are required to follow SEC regulations. It is becoming more common for companies to offer securities through an issuance platform, as it allows them to reach a larger audience than traditional methods. This is also attractive to investors, as securities can be traded in a secondary market, providing them with more options and liquidity for their shares. 

 

Additionally, companies looking to raise capital can do so with the help of a broker-dealer. Broker-dealers are SEC-registered entities that deal with transactions related to securities, as well as buying and selling securities for its own account or those of its customers. Plus, certain states require issuers to work with a broker-dealer to offer securities, so working with a broker-dealer allows issuers to maintain compliance with the SEC and other regulatory entities. This makes it likely that a company raising capital already has an established relationship with a brokers-dealer. 

 

Lastly, companies looking to raise capital can do it directly through their website. With the KoreConX all-in-one platform, companies can raise capital at their website, maintaining their brand experience. The platform allows companies to place an “invest now” button on their site throughout their RegA, RegCF, RegD, or other offerings so that potential investors can easily invest. 

 

Whichever method of raising capital a company chooses, it must make sure that it aligns with the company’s goals. Without understanding each method, it is possible that founders may end up being asked to give up too much equity and lose control of the company they have worked hard to build. Companies should approach the process of raising capital with a strategy already in place so that they can be satisfied with the outcome. 

Meet the KorePartners: Andrew Corn, CEO of E5A Integrated Marketing

Posted on by Oscar Jofre

With the recent launch of the KoreConX all-in-one RegA+ platform, KoreConX is happy to feature the partners that contribute to its ecosystem.

 

From the first project he worked on while still in college, Andrew Corn has been involved in financial marketing. After his first analyst’s presentation, “and then second, and then fifth, I decided to drop out of college and focus on that full time. Soon after, I wrote my first IPO roadshow, built a company around that, and a few years later, also started working for money managers,” Andrew said. After selling that company, Andrew went to work for a publishing company specializing in investingas the chief marketing officer.

 

Then, for 9 years, Andrew left the marketing industry and created a multi-factor model used to analyze the stocks available on US exchanges to select them for separately managed accounts, and he and his team designed the index behind six ETFs, eventually selling that company to a bank, where he served as the chief investment officer. “When E5A was born, it was born as an investment house, and then I got sucked back into marketing in 2012 and switched E5A over into a marketing firm in 2013,” Andrew recounted. At E5A, they acquire investors through systematic, data-driven marketing.

 

For companies that are looking to raise capital, marketing plays an incredibly important role. For RegA+ offerings, a company’s first target is typically its existing network of customers. However, a marketing firm such as E5A can help companies to understand the behavior and demographics of current customers. Knowing how customers behave will allow companies to targetpeople that are demographically and behaviorally just like their current customers.

 

With RegA+ offerings, the majority of the money will be raised through marketing. “The beauty of that is that it’s passive,” Andrew says, “we can look at entirely new groups of prospects who are the most likely people who would be interested in investing in a company like yours. Sometimes we can find them through behavior or demographics, hopefully, it’s a combination of both.” Once potential investors have been found, marketing agencies can come up with the messaging platform that will raise money through these investors. Companies are often surprised that their existing network raises little money, but the investors they can gain through marketing helps them reach their goals.

 

Through the use of marketing, Andrew is excited about how companies benefit from acquiring investors at scale. “If you’re a restaurant chain, you want as many people to know about it as possible. If you have a direct-to-consumer product, you want many people to know about it. So a byproduct of raising capital is promoting the brand or the business.” Both investors and the companies get more engaged as information is put out regularly.

 

With RegA+ allowing investors of all wealth, income and experience levels to participate, the restriction allowing only accredited investors is lifted. Additionally, Andrew believes that increasing the limit from $50 to $75 million will greatly improve the regulation since oftentimes companies require more funding. With IPOs on both the New York Stock Exchange or the NASDAQ often over $100 million, he believes increasing the cap to as much as $200 million in a few years would be better for companies looking to utilize RegA+.

 

For its clients, E5A is a “turnkey marketing company, so we do everything from messaging platforms to data-targeting to media buying and optimization, message testing, web development, etc.” Andrew expects that E5A will be held to a standard of success being measured by the amount of money raised. While looking to maintain as much control of the outcome, E5A also understands that many of the companies they work with have their own marketing or IT departments, and try to share as much work with them as possible and include them in the process.

 

E5A looks to work with companies that have a high probability of success, which requires an ecosystem of legal, accounting, technology, broker/dealer, consulting, and marketing services. Andrew says, “We feel that Oscar and the KoreConX team are putting together a world-class network of service providers who are experts in each of their individual tasks. We are glad to participate.”

How does Investor Acquisition Help Find the Right Investors?

Posted on by Oscar Jofre

If you’re a company that is in the process of raising funds for your business, you’re likely looking to do so with the help of investors. By trading a piece of your company in exchange for some much-needed capital, you can fund your ideas and the growth of your business. With Regulation A+ opening up the investor pool to include those who would not be regularly included in a traditional IPO, it is essential to choose the right investors with whom you are going to grow your business. As investors become shareholders that often have some kind of say in the company, it will be important to choose investors that will aid you on your journey to grow your company. But how exactly do you find the right investor for you and your company’s vision?

 

Investor acquisition is targeting the best investors for the offering based on their demographics. Are you trying to raise money from your customers or people with similar behaviors? Are you targeting investors based on location, age, or other demographics? With investor acquisition, it allows companies to find and target the investors that will be best suited for the offering. If companies are targeting the investors that are most likely to invest, less time is wasted and more money is raised by eliminating the need to interact with those who aren’t going to invest. 

 

Additionally, through investor acquisition, you can turn current customers into investors and investors into customers. With the addition of RegA+ to issuers’ toolbox, the ability to raise money from customers is now easier than ever. The customers who already know and support you can turn into important advocates for your company, which in turn can entice either more investors or customers to support your company.  Through RegA+, investors are not required to be accredited, so everyday people now have the opportunity to invest in companies that they believe in and support. 

 

Once you’ve found investors to invest in your offering, keeping proper records of them will be essential to long-term success. Issuers need to manage their cap table, maintain investor relations, perform securities transfers in a compliant way, transfer agent, and more. With the KoreConX all-in-one platform, companies can securely manage who their investors are, issue shareholder certificates, and maintain their cap table in real-time, as changes occur. For investors, they can securely manage their portfolio of investments, receive important company information, and vote on company matters. With the platform, companies can maintain compliance and manage their information seamlessly. 

 

Once you’ve decided to raise capital for your company, the next most important should be who you are going to raise the money from. With the help of investor acquisition, you can analyze information about your target so that you can best understand their behavior and what will get them to invest. Making smarter decisions about who you want investment from will help your company grow in the direction that you see best. 

 

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