4 Ways to Boost Investor Interest in Your Reg A+ Crowdfunding Offering
A recent post on Crowdund Insider shared four ways issuers can boost investor interest in their Reg A+ offerings. The post discusses how Blaine McLaughlin, Chief Operating Officer of VIA Folio, believes issuers leveraging Reg A+ to crowdfund their business “should think differently about generating investor interest if they are to achieve their fundraising goals.”
1. Understand what Reg A+ IPO investors want to purchase. Investors are more inclined to invest if the company can show them that it is profitable, has a strong management team and is working with reputable investment bankers and brokerage platforms.
2. Focus on where the money is. Family offices and advisors regularly use alternatives, including IPOs, to diversify portfolios. Also, more advisors are using alternatives as a way to distinguish their services. Companies and their intermediaries should not rely on individual investors alone to generate enough subscriptions for a successful capital raise.
3. Offer an easy-to-use, familiar investing experience. All investors need to be comfortable with the investing process. They have embraced technology in their personal lives, and expect the same online experience from those offering Reg A+ IPOs. Also, advisors need a trusted custodian and online brokerage that offers taxable and tax-deferred accounts.
4. Be ready for a significant marketing commitment. Companies must have a marketing plan that motivates their followers to participate in the entire subscription process. Marketing efforts should reach a company’s most passionate audience and create excitement about how the offering advances the company’s business goals and benefits customers and investors.
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