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VCs are struggling to find new ways to add value for founders.
Biz dev and marketing services don't cut it any more--these are now commodity functions.
But there's one HUGE opportunity that VCs aren't talking about!
What is it?
Biz dev and marketing services don't cut it any more--these are now commodity functions.
But there's one HUGE opportunity that VCs aren't talking about!
What is it?
This article by @tomiogeron provides context:
"The power dynamic between founders and investors has continued to push ever more toward founders--with even more capital options for founders." https://www.protocol.com/newsletters/pipeline/venture-capital-power-shift
"The power dynamic between founders and investors has continued to push ever more toward founders--with even more capital options for founders." https://www.protocol.com/newsletters/pipeline/venture-capital-power-shift
He's right: Reg CF and Reg A+ have become increasingly popular capital raising tools for founders.
Last year, startups raised almost $250m under Reg CF, and that number is forecasted to DOUBLE this year.
Reg A+ issuers have raised *low billions* since 2015.
Last year, startups raised almost $250m under Reg CF, and that number is forecasted to DOUBLE this year.
Reg A+ issuers have raised *low billions* since 2015.
And what's the single biggest challenge to running a successful Reg CF or Reg A+ campaign?
MARKETING.
And not just any type of marketing: retail investor marketing.
(Sound familiar?) #RobinHood #GME cc: @stoolpresidente
MARKETING.
And not just any type of marketing: retail investor marketing.
(Sound familiar?) #RobinHood #GME cc: @stoolpresidente
What's the biggest trend in the space? The rise of independent financial publishers.
Publishers are driving *incredible* outcomes for Reg CF and Reg A+ issuers alike.
I talked about it in a recent webinar hosted by @issuanceHQ and @DavidNFeldman: https://bit.ly/39zKTIJ
Publishers are driving *incredible* outcomes for Reg CF and Reg A+ issuers alike.
I talked about it in a recent webinar hosted by @issuanceHQ and @DavidNFeldman: https://bit.ly/39zKTIJ
Case in point: Flora Growth raised $30 million online from 10k retail investors, the bulk of whom were driven into the offering by a financial publisher.
Publishers are not compensated--they monetize subscribers only.
That's right: they're paid newsletters.
Publishers are not compensated--they monetize subscribers only.
That's right: they're paid newsletters.
Founders don't need biz dev or marketing resources from VCs.
They don't care for VC Twitter--it's laughable (sorry guys).
What they *really need* is help marketing their Reg CF and Reg A+ offerings.
They don't care for VC Twitter--it's laughable (sorry guys).
What they *really need* is help marketing their Reg CF and Reg A+ offerings.
What should VCs do?
They should launch their own newsletters: specifically, a community of retail investors that they can guide into these offerings.
Take a page from the financial publishers' playbook!
They should launch their own newsletters: specifically, a community of retail investors that they can guide into these offerings.
Take a page from the financial publishers' playbook!
Are you listening @a16z? You're halfway there.
VCs that can drive successful Reg CF or Reg A+ campaigns will be providing the greatest value of all.
Btw: these campaigns are not just financing tools--they're *customer acquisition* vehicles.
Tell 'em @HustleFundBaby.
VCs that can drive successful Reg CF or Reg A+ campaigns will be providing the greatest value of all.
Btw: these campaigns are not just financing tools--they're *customer acquisition* vehicles.
Tell 'em @HustleFundBaby.
In March, the cap on Reg CF is increasing to $5m, and the cap on Reg A+ is increasing to $75m.
These securities exemptions are here to stay.
They democratize access to to capital for founders, and help companies turn customers into investors.
These securities exemptions are here to stay.
They democratize access to to capital for founders, and help companies turn customers into investors.
Savvy VCs will lean into the industry.
VCs that continue to ignore the space will lose mind share and market share.
Some will completely disappear.
VCs that continue to ignore the space will lose mind share and market share.
Some will completely disappear.
Notable founders are already leaning into the industry (hi @shl).
Founders that have *every option* of capital raising available to them.
How can VCs add value? By building a community of retail investors that they can deploy into deals.
Founders that have *every option* of capital raising available to them.
How can VCs add value? By building a community of retail investors that they can deploy into deals.
