Menu Close

Critical Successful Factors in Regulation A+ Offerings

critical success factors in Reg A+

In this discussion with Rod Turner, Founder, Chairman and CEO of Manhattan Street Capital, we discuss the critical success factors for a Regulation A+ offering to raise capital for your private company.

Rod:  The most critical component of success for these offerings is, once the company is identified as being a viable transaction because they have enough consumer appeal, then having a marvelous marketing agency that knows what to do, loves the company and proposes a reasonable budget to do it is important.

That’s usually 2% to 4% of the capital that’s raised. It’s not charged as a percentage, I’m just framing it. When it’s done right, it’s a very similar technique to what you see on Kickstarter. It’s amazing how much work has to be done. There is the project management that needs to be done and all the different marketing bases that have to be covered. We have so much better tools these days than ever before.

Patrick:  Are there PR and IR, public relations and investor relations, agencies that are now specializing in this?

Rod:  Not IR so much. That’s usually considered for later. Yes, there are agencies specializing in this. We’ve picked four that we work with. We have a rapport with them. We don’t control them. They want to see the continuing flow of companies from us.

This is Patrick Henry, CEO of QuestFusion, with The Real Deal…What Matters.