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Rod Turner
Rod Turner is the founder and CEO of Manhattan Street Capital, the #1 Growth Capital service for mature startups and mid-sized companies to raise capital using Regulation A+. Turner has played a key role in building successful companies including Symantec/Norton (SYMC), Ashton Tate, MicroPort, Knowledge Adventure, and more. He is an experienced investor who has built a Venture Capital business (Irvine Ventures) and has made angel and mezzanine investments in companies such as Bloom, Amyris (AMRS), Ask Jeeves, and eASIC.
www.ManhattanStreetCapital.com
Manhattan Street Capital, 5694 Mission Center Rd, Suite 602-468, San Diego, CA 92108.
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So moving on to the schedule for regs. Let me just gonna answer the questions that we have. There is no I'll get into, I'll get into those answers later. I'm gonna cover both those questions later. But they're good questions. Thank you. So schedule wise while theoretically you can, you know, you should be able to do these things in, you know, five days using AI or something. In truth, it takes time to, to launch these offerings because there's decisions to be made, there's documentation to be done, there may be board resolutions needed. That stuff takes time.
So I would say six weeks from pressing the start button to going live and starting to raise money is a reasonable reasonable timeframe. You can do it faster, of course, but I think six weeks is, is reasonable in that time. You're preparing the PPM type document and making sure that the class of stock that you are issuing has been authorized, getting everything documented in that way, writing up the legal, the description of the business properly in the PPM type document. And as, as important the marketing agency is being signed, has been signed up, you know, we'll introduce the agency assuming that they're we're working together, and that the, the agency has to be brought up to speed on all the nuances of the business. Then they need to produce the right messaging. Video videos need to be produced, graphics need to be produced, compelling content that is legitimate, that is to say passes muster from a regulatory standpoint needs to be produced. So you have a nice beautiful offering page. You have emails written, you have advertising content prepared, all in that six week window. And that is a reasonable time. An online social media advertising account set up.
An important thing to know I don't know of, of the folks that are on the call, I don't know which of you have experience raising money online versus who does not. But the fact of the matter is, when you launch the initial advertising outreach, the only thing we know is that we don't know exactly which ads with which messaging and which target audiences are gonna resonate best. So you don't spend a lot of money in the first weeks because it doesn't make sense to blow a lot of money inefficiently it. What what does make sense is to be rapidly adjusting the content, identifying what is working and optimizing and optimizing and further optimizing. And then as the efficiency increases, we're building a prospect funnel. We're building momentum. People are investing from the get go, depending on how efficient the initial marketing outreach is.
But be aware that you don't start this and raise mega bucks right away. It's a journey to get efficiency in the early weeks and really the early couple of months so that you want to spend a lot more money to raise a lot more money when the efficiency is low. You don't wanna spend a lot of money by definition. So recognize the ramp. You know, you can't raise, let's say you're launching a new offering and it's a compelling company and you want to raise, say, $16 million. Just picking a number to, to assume that you can raise $16 million in, in the first eight weeks after you go live to go live is naive. Very naive. Unless you have a gloriously happy fan base and customer base who are chomping at the bit to get into your company in which case, then of course anything can happen.
But in a more normal situation where we don't have a, an existing fan base and existing investor base or customer base that are really ecstatic, we've gotta build all that momentum from scratch. It's gonna take time, right? And it's a journey and it's an educational process with constant, with constant, with regular updates, ideally weekly updates to inform the people in the prospect funnel who may have invested a modest amount and are considering investing more who have or who have not invested yet, but just become a prospect. It's a journey to get the, to, to get more of them and to get more of them to invest by reassuring them and conveying more and more content to show, to show the reality and the credibility of the company and essentially to push them over the line.
There is an internal selling effort that needs to be done in all these online raises. So someone needs to be working the phone. Someone needs to be responding to emails and posting responses to social media comments. One of the lovely things about social social media advertising for online offerings is that we get sharing of the ads and we get positive comments, but we also get negative comments. There's a certain percentage of the populace around the world that wants to be, I don't know if they're funded by competitors or if they're just poisonous people that want to poison the well, and you can't just ignore them, you have to respond to them. If it's irrelevant, po political nonsense or other nonsense, you can delete it. But if it's relevant to the offering the questions or the statements that they've made, then you need to respond to them in a positive manner. And that takes time. I had, you know, I've had a couple of, of issuer clients where they were complaining that it was taking too much time, but they were getting hundreds of positive comments and shares all sorts of wonderful things. When you have that happening, this is a thing of beauty because it amplifies the effectiveness of the advertising.
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