Too many issuers think of the Regulation A Offering Circular as just a dry legal document between the SEC and the lawyers. It should be more than that.
As I’ve said once or twice before, Crowdfunding is a marketing business. Creating a great company with a great product isn’t enough. “Build it and they will come” worked for Kevin Costner but it doesn’t work for most companies trying to raise capital.
Here are some examples of things you’d like to say to attract investors:
- We have a terrific track record in this industry going back 15 years.
- Our performance during the last five years has doubled industry averages.
- Our Founder has had successful exits from her last three companies.
- Experts forecast that our market will triple over the next seven years.
Those can be very powerful messages for prospective investors. But here’s the thing: you’re not allowed to say them in your Facebook ads unless you’ve already said them in your Offering Circular.
You spend all the time and money to have your Regulation A offering qualified by the SEC, only to learn that you’re not allowed to say what you’d like to say to attract investors.
Write your Offering Circular with advertising in mind. Make your lawyer speak with your marketing team and vice versa, even though they speak different languages. Create your marketing materials — your website, your Facebook ads, your email campaigns — in conjunction with your Offering Circular, so all the pieces are working together rather than pulling in opposite directions.