Take Away from FinFair – Raising Reg A+ Money as a Marketing Tool

During our visit to FinFair in New York City on July 29 we were able to speak with many of the early adaptors in the Reg A+ industry.  There were many topics that were covered and discussed both in the panel presentations and during casual conversations during the breaks which we will cover in a series of posts.The second of five topics we are covering is how Reg A+, in its most useful form, will become a marketing tool for the companies that use it.If you look at just about any study on newly formed businesses that have been published, whether retail or restaurant, it will likely indicate that anywhere from 50-80% of businesses fail after 18 months to 4 years.  That is a significant failure rate and there are a multitude of reasons why those businesses fail.One of the biggest reasons for failure is the ability for businesses to penetrate their market.  That is where Regulation A+ (Reg A+) can come in.  Reg A+ investing can align a customer and the businesses for the goal of mutual success.  Once a customer becomes an investor, it is then in the customer/investor’s best interest for the business to succeed.  They will become an ambassador of the brand, a voice in social media, and a source of recommendations.  Reg A+ will allow investors to become early shareholders of emerging companies, some of which will become the successful companies of tomorrow.There are platforms and services currently being developed that will allow a customer to opt to get more information about becoming an investor and possibly even making a advance on their investment prior to reviewing the investment material.  Imagine a day where you buy new product, and can invest in that same product with a push of the button.  This is a millennial’s dream situation.  Convenience and investing in the products you believe in.As you start your Reg A+ offering, make sure you consult with your securities attorney about what you can and can’t say, and work with them to develop how you can use Reg A+ as not just a way to raise money, but to create a marketing campaign for your business.