Approximately 87% in Three Weeks: What One Biotech’s Pre-Launch Reservation Strategy Shows
InSitu Biologics, a company developing a non-opioid post-surgical pain medication, built a pipeline of non-binding investment reservations before its Regulation A+ offering was qualified by the SEC. Those reservations carried an incentive to lock in the initial issue price. When the offering went live, approximately 87% of the reservations converted into actual investments within three weeks. We worked with the company on the raise. We own stock in InSitu Biologics, and I personally invested in the company, so we have a disclosed interest in its outcome.
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Quick Answer
The reservations were non-binding and offered a lock-in of the initial issue price. They were sourced mainly from the founder speaking on biotech industry panels rather than from paid advertising. An approximate pipeline of $1 million to $1.6 million was already in place before advertising began. When the Regulation A+ offering went live, approximately 87% of those reservations converted within three weeks. This is a single historical case. We cannot verify whether the conversion rate is a record because we do not have competitor data.
The Pre-Launch Reservation Mechanism
Ahead of SEC qualification, the founder and primary investor invited prospective investors to make non-binding reservations for the upcoming Regulation A+ offering. The incentive attached to those reservations was a lock-in of the initial issue price. The commitments were explicitly non-binding.
How the Pipeline Was Built
The primary source of the reservations was the founder speaking on multiple panels in the biotech industry. During those appearances, the upcoming Regulation A+ was discussed, and attendees were invited to reserve. The resulting pre-committed pipeline was approximately $1 $1.6 million. That interest existed before any paid advertising for the Regulation A+ began.
Conversion at Launch
When the offering went live, approximately 87% of the reservations converted into investments within three weeks. The pre-existing pipeline was in place before broader marketing started. We believe the conversion rate may be a record, but we cannot prove it. We do not have the data on other offerings that would be required for a verified comparison.
Limits of the Case
This is a single historical observation from one biotech company. The approximate 87% conversion and the approximate $1.6 million pipeline are specific to this raise. They are not presented as typical, expected, or repeatable results for other issuers. Our ownership of stock and my personal investment in InSitu Biologics are disclosed so readers can evaluate the account with that context in mind.
If you have questions about pre-launch reservation strategies or Regulation A+ offerings, email [email protected].
About the Author
Rod Turner
Founder & CEO, Manhattan Street Capital
Rod Turner is the founder and CEO of Manhattan Street Capital, where he built the platform growth-stage companies use to run Regulation A+ raises online.
He previously helped build Symantec/Norton, Ashton Tate, MicroPort, and Knowledge Adventure, and built the venture capital firm Irvine Ventures, investing in companies including Bloom, Amyris, Ask Jeeves, and eASIC.
The commentary on this page reflects Rod's observations of what tends to work in online capital-raise marketing. It isn't legal, accounting, or investment advice.
FAQ
What made the InSitu Biologics reservations non-binding?
The founder invited prospective investors to make reservations ahead of SEC qualification. Those reservations were non-binding and carried an incentive to lock in the initial issue price.
How were the reservations primarily sourced?
They came mainly from the founder speaking on multiple biotech industry panels where the upcoming Regulation A+ was discussed, and attendees were invited to reserve.
How large was the pre-committed pipeline before advertising began?
The pipeline was approximately $1 million to $1.6 million and was already in place before paid advertising for the Regulation A+ started.
What conversion rate was observed after the offering went live?
Approximately 87% of the reservations converted into actual investments within three weeks of the offering going live.
Can the approximate 87% conversion be treated as a verified record?
No. We believe it may be a record, but we cannot prove it because we do not have competitor data for comparison.
Does Manhattan Street Capital have an interest in InSitu Biologics?
Yes. We own stock in the company, and I personally invested in it. That interest is disclosed.
Manhattan Street Capital is not a law firm, valuation service, underwriter, broker-dealer, or Title III crowdfunding portal, and does not engage in any activities requiring such registration. Manhattan Street Capital does not provide investment advice and does not structure transactions. Do not interpret any commentary from Manhattan Street Capital staff as a replacement for advice from qualified service providers in these professions. When Rod Turner provides commentary, it is based on his observations of what works and what does not from a marketing perspective in online offerings; he does not tell readers what to do, only what is most likely to be cost-effectively marketed online. All decisions about the terms of any offering are made by the companies making those offerings.
