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Chapters:
- The investor perspective
- It must be easy to describe the business
- Strategic and business characteristics
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The content in this webinar is not and shall not be construed as investment advice. This information is meant to be informative and for general purposes only.
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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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Suitable companies. You've got to look at this from the investor mindset, right? So accredited investors in a RegD offering are a skeptical bunch. They're going to do due diligence. They're going to check with their buddies. They're going to look at the investment, the competitive landscape. They'll spend time and effort checking into your company and your offering. Fair enough. But with that understanding, then that gives us a better handle on how we should market to them. Demonstrate the credibility of the company, the credibility of the team. Make sure that the offering documents are professional and comprehensive or well-written. But also the terms have to be attractive.
You know, the valuation you're normally going to get in a RegD offering will be substantially lower than in a RegA-plus, for example, because we're dealing with accredited, sophisticated investors who really demand that. One of the things that I like to use as a test in considering the viability of a RegD offering is it should be so attractive that when a suitable, when an investor who recognizes and understands the business is evaluating it, they like it so much. They don't want to tell their friends because they're worried that if they do, their friends might take the capacity thereby displacing them from getting in.
They have to think of it as a hot opportunity. It needs to be easy to explain. But doing online advertising, right? But doing social media advertising on Facebook and Instagram and if we can get into it TikTok because it's so much more cost-effective than Facebook and Instagram are. But we're talking about somebody's doing something else in their social media stream and we're intervening with an advertisement that has to be compelling and attractive and easy to understand. And if they click on it and come to the offering page, the offering page has to be so compelling that they stick around, that they spend 10 seconds so that we can get them to spend 30 seconds, so we can get them to spend two minutes and potentially engage, give us an email, start an investment even. In these online offerings, you would be surprised, if you haven't done them before, you would be surprised how often people will advise themselves and will start an investment or even complete an investment on their mobile phone in these online offerings.
Obviously more so in more retailer or more retail-oriented raises like Reg A+, but we see that in Reg D, 506C offerings also. Must be easy to explain. The trends in the business must be favorable. These are just obvious things. You know, if you're in a business where the market's declining in size, it's going to be hard to convince people to invest. Very obvious. Has to have a credible team. You know, the kinds of businesses or pre-IPO companies, companies that have the potential by the nature of what they're doing and the stated intention to go and list when circumstances suit is going to be a more attractive kind of company in a Reg D offering. IOTech companies can be very strong. AI companies are topically, you know, very current green tech companies since the passing of the IRA Act, which puts a lot of money in play for companies to do good things in the green tech space. There's a lot more attractive, there's a lot more engagement from accredited investors in Reg D offerings on that are green tech from that as a result of that.
THIS TEXT TRANSCRIPT HAS ERRORS IN IT THAT WERE CAUSED BY THE SPEECH TO TEXT CONVERSION SOFTWARE WE USED. DO NOT DEPEND ON THE TEXT TO BE ACCURATE. WATCH THE RELEVANT PARTS OF THE VIDEO TO MAKE SURE YOU ARE PROPERLY INFORMED. DO NOT DEPEND ON THIS TEXT TRANSCRIPTION TO BE ACCURATE OR REFLECTIVE OF THE STATEMENTS OR INTENT OF THE PRESENTERS.
