MCLEAN, Va., Oct. 23, 2017 /PRNewswire-USNewswire/ -- When the SEC's JOBS Act's Reg A+ rules went into effect in 2015, many in the capital raising industry anticipated that small investors would rush to participate in this new funding process for small- and medium-sized enterprises. However, the SEC Division of Economic and Risk Analysis' recent report, Access to Capital and Market Liquidity, indicates that these expectations have fallen short of reality.
"VIA Folio can help. We work with investment banks, broker-dealers and others to unite small-cap capital raising and traditional investment banking," said Blaine McLaughlin, chief operating officer of VIA Folio. "Also, we believe that companies seeking to raise capital should think differently about generating investor interest if they are to achieve their fundraising goals."
VIA Folio's four ways to generate more investor interest in Reg A+ IPO offerings are:
- Understand what Reg A+ IPO investors want to purchase. Investing in IPOs carries significant risk. Investors are more inclined to invest if the company can show them that it is profitable, has a strong management team and is working with reputable investment bankers and brokerage platforms.
- Focus on where the money is. Family offices and advisors regularly use alternatives, including IPOs, to diversify portfolios. Also, more advisors are using alternatives as a way to distinguish their services. Companies and their intermediaries should not rely on individual investors alone to generate enough subscriptions for a successful capital raise.
- Offer an easy-to-use, familiar investing experience. All investors need to be comfortable with the investing process. They have embraced technology in their personal lives, and expect the same online experience from those offering Reg A+ IPOs. Also, advisors need a trusted custodian and online brokerage that offers taxable and tax-deferred accounts.
- Be ready for a significant marketing commitment. Companies must have a marketing plan that motivates their followers to participate in the entire subscription process. Marketing efforts should reach a company's most passionate audience and create excitement about how the offering advances the company's business goals and benefits customers and investors. Marketing plans should also build in the assumption that some followers will not invest.
"The Reg A+ IPO market is important to meeting small investors' needs for a diversified portfolio and access to the capital formation process," said McLaughlin. "We understand what it takes for Reg A+ securities to come to market, and we offer highly sought-after services, such as brokerage accounts that enable trading in unlisted, soon-to-be-listed and listed securities. VIA Folio has processed six Reg A+ offerings and is primed for more."
(Request a demo of the Folio platform.)
About VIA Folio
VIA Folio powers the offering process, subscription, closing, custody, and distribution of alternative assets such as private debt and equity, REITs, Reg A+ IPOs and hedge funds. We make it possible for advisors and investors to create more diversified portfolios by holding multiple alternative and publicly traded securities in a single taxable or tax-deferred brokerage account. www.viafolio.com
This communication is for information purposes only and should not be regarded as a recommendation of or an offer to sell or as a solicitation of an offer to buy, any financial product. Financial products listed on our sites are only available to residents in the states where those products are registered, or exempt from registration. Many securities offered through subscription are not publicly traded and are intended for investors who do not have a need for a liquid investment. Additionally, investors may receive restricted securities that may be subject to holding period requirements. Companies seeking unregistered investments are often in earlier stages of development and have not yet been fully tested in the public marketplace. Investing in unregistered and IPO securities requires high risk tolerance, low liquidity requirements and long-term commitment. Investors must be able to afford to lose their entire investment.
©2017 FOLIOfn, Inc. All rights reserved. Securities products and brokerage and clearing services are offered by Folio Investments, Inc., a registered broker-dealer and member FINRA/SIPC.
SOURCE VIA Folio
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