Testing the Waters" (TTW) is a process allowed under Regulation A+ that enables companies to gauge investor interest before committing to the time and expense of a full SEC filing and audit. This approach is particularly beneficial for companies looking to raise capital, as it allows them to market themselves to potential investors with relatively few restrictions.
During the TTW phase, companies can use various marketing channels such as social media, email campaigns, online advertising, and more to reach out to potential investors. Importantly, this process allows potential investors to make non-binding reservations, giving companies a clear sense of the market's interest in their offering without requiring a financial commitment from the investors at this stage.
At Manhattan Street Capital (MSC), we offer a specialized service called the RegA+Audition(TM) to facilitate this process. This service is designed to help companies conduct a low-cost market test of their appeal to investors. It includes features like engaging with our community of members and mentors to receive feedback on key aspects such as the company's pitch, video, marketing strategy, and team. The more questions companies ask and the more they interact with our community, the more valuable insights they can gain.
MSC charges $8,000 per month (two months) for this Testing the Waters service, paid in advance monthly. This cost-effective approach allows companies to evaluate their market potential before committing to the full costs of a Regulation A+ offering.
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