Reg A Marketing with DealMaker

Building Momentum with Reg A+: The Power of Community in Capital Raises

With Initial Public Offerings (IPOs) growing scarcer and heightened financial market volatility becoming the norm, startups must today explore innovative ways to secure capital and build momentum. One effective strategy is conducting a series of Regulation A+ (Reg A+) raises in advance of an IPO. Reg A+ enables issuers to raise capital through equity crowdfunding and is a game changer for startups looking to secure capital and build their investor community. 

From a marketing perspective, investor audiences are notoriously difficult to reach and convert. However, Reg A+ provides a unique opportunity for companies to build a strong community that will ultimately help engage potential investors. Building a strong investor community is a great way to show institutional markets that you have already successfully attracted interest from retail investors. 

“A strong investor community is the bedrock of raising capital. An engaged community is one of the most important factors we consider when deciding which issuers we take on as clients; it is the strongest indicator of whether an offering will be successful.” – DealMaker

We sat down with our key strategic partner, DealMaker, to discuss 4 reasons why building a community is critical to the success of a capital raise:

1. Shows proof of concept.

A strong community sets the stage for a compelling proof of concept, signaling a genuine interest and belief in your company’s mission. This traction also validates your company’s business model and enhances credibility and attractiveness to external stakeholders, including public and family offices.

2.Creates an active shareholder base.   

An active shareholder base goes a long way in creating a solid foundation for your company, bolstering credibility, and facilitating long-term growth. An active shareholder base can make your company more attractive to institutional investors and others who might be interested in being a part of your future IPO. This proves your company has a track record of effectively communicating with investors. 

3. Conversion of customers to shareholders 

An interconnected relationship between customers and shareholders will strengthen your company’s position and potential for long-term growth. Reg A+ allows companies to convert customers into shareholders and vice versa, fostering a dedicated community of supporters. Customers-turned-investors have a strong interest in seeing the company thrive and grow, leading to increased loyalty and advocacy on behalf of the brand. 

4. Make the most of less restrictive marketing regulations.  

Reg A+ comes with the ability to use general solicitation for marketing and communication. This is an excellent opportunity to utilize modern marketing strategies, including social media and email marketing. Investors are known to research a company’s level of social community by looking at the number and engagement of real followers, as well as the company’s media coverage, including press releases, videos and other publicly available content. Leveraging appropriate marketing strategies will strengthen your company’s online presence and generate a wider interest in your future offerings.

Ext. Marketing understands the power of community building and has worked on many successful Reg A+ raises. Let us help you make your next raise a success. Contact us today for a complimentary consultation at info@ext-marketing.com.