Turning Customers into Investors…and Brand Ambassadors!
A RegA+ offering is being used for far more than just raising venture capital. A capital raise can be used by any size business to convert their customers into “brand ambassadors”. Research has shown that if a customer has vested interest in the company then they are more likely to not only recommend that company to others (and promote the products/services) but spend more money at that company as well!
The beauty of conducting a Reg A+ offering is that, unlike with other methods of raising venture capital or private equity from angel investors, the entrepreneur can ask for a large sum of money from a large pool of people without giving up any board seats or control in their company. And then you have your brand ambassadors promote your product or service for you (and them!).
Under Reg A+, you can raise any sum up to $50 million in a 12-month period. Best of all, you can take both accredited and unaccredited investors (aka everyone can invest!). Entrepreneurs can even test the waters under Reg A+ by launching a campaign to gauge investors’ interest before launching their mini-IPO. If the testing the waters indicates there won’t be much interest in your product/service then you can always decide to pursue another route to raise capital.
If you are interested in pursuing a venture capital raise for your company, consult with our experienced securities lawyers at Emily@eaglaw.co