Setting the foundation for your raise
Manage the Entire Capital Raise
KoreConX offers the most advanced all-in-one platform enabling you to manage investors, shareholders, cap table and so much more with ease.
Select Your Partners
Get it right the first time around. Our RegA+ ecosystem brings together all the firms that have successfully done RegA+ offerings. It’s Critical to to have partners in your offering that understand what you need in order to get you to launch as quickly as possible. Our RegA+ ecosystem consists of the following partners we have vetted in for you so you can reach your goal.
Rialto Markets FINRA Broker-dealer
It’s highly recommended that an issuer hire a broker dealer for their RegA+ offering. Consider them as your “insurance policy” for their typical 1-4% of the total raised amount. BD’s will satisfy requirements at the Federal SEC level and also the 50+ mini-SEC’s at the state level.
Why is a BD considered your “insurance policy”?
As the issuing company you want to focus on your offering, a BD is there to ensure compliance with respect to KYC/ID/AML, and investor suitability checks. Also, it’s a good idea to run all your marketing/advertising ideas and materials to make sure you’re onside with the SEC. This way the onus is on the BD.
There is 7 troubled states that require you to have a registered FINRA Broker-dealer to sell securities to investors.
The best insurance policy for your offering.
RegA+ Securities Lawyer
It’s imperative to have your offering filed by a US securities lawyer. They will check that the conditions of the RegA+ exemption are met and successfully filed with the SEC and states.
Importance of a Securities Lawyer.
Having a securities attorney on your side is important not only to successfully navigate the nuances of the filing process but also as a measure to protect your interests. Should there ever be a claim, an issue of conflict of interest, omission of facts, breach of fiduciary duty, trading without your permission, risky investments and more, you’ll be thankful they’re on your side.
The issuers must provide audited financial statements for their prior two years (a one – year old company files a one year audit) in the offering statement and annual reports. All filings with the SEC have to be prepared in accordance with GAAP, and RegA+ Tier 2 requires an audit opinion.
What is a financial auditor?
A financial auditor reviews a company’s financial statements, documents, data and accounting entries. Financial auditors gather information from a company’s financial reporting systems, account balances, cash flow statements, income statements, balance sheets, tax returns and internal control systems. The information is then reviewed and used to present all financial data relating to a specific organization in an accurate, fair manner, ensuring that no fraud or gross errors are present in the company.
Escrow (Bank or Trust)
What is an escrow provider?
Offered through our KorePartners, business escrow services support your Offering’s critical investor transactions that require escrow processing to be held “in-trust” by a neutral party, typically via a bank or trust co.
Role of an Escrow Provider?
An escrow provider is required with your RegA+ and they provide an account where funds are held in trust whilst two or more parties complete a transaction. This means a trusted third party such as Escrow provider will secure the funds in a trust account. The funds will be disbursed to the issuer after the terms of the escrow agreement have been met.
SEC Transfer Agent
KoreConX private label all-in-one platform also provides you with a registered SEC Transfer Agent (TA). The KoreConX Transfer Agent role is included in your private label All-In-One platform. Rest assured that your regulatory requirements are being fulfilled.
What Role Does The Transfer Agent Play?
The security issuer to record changes of ownership, maintain the issuer’s security holder records, cancel and issue certificates, and distribute dividends.
Managing all your securities, not just your offering
Awareness & Succeeding with Investors.
Driving more “eyeballs” to your offering is a general ingredient to RegA+ success. Not every issuing company has a built-in fan or customer base that can be potential investors.
The Role of Investor Acquisition Firms.
These firms are very niche and specialized in how they generate awareness through media, optimize data from various channels, messaging support, and creative market approaches that all add to the positive outcome of your RegA+.
These are the different types of Investor Acquisition techniques/Tactics
Public Relations Firm
PR firms are instrumental in managing the reputation of your company through owned, earned, and paid communications. Usually, PR firms handle messaging to the press with a core objective of building brand awareness and reputation management as it relates to your company and it’s offering.
Investor Relations Firm
Is responsible for communication between a company’s corporate management and its investors. It’s common for IR firms to handle the release of information, supporting inquiries and meetings. Lastly, they also provide feedback to management, and preparation in case of crisis management.
Videographers are perhaps one of the most influential pieces to your offering. Being able to beautifully convey your product or service and investment opportunity to investors in this offering space is crucial. Unlike public markets where ROI is king, it’s often said that investors in the private markets have a connection and kinship to why they invest.
There are so many ways to drive success to your RegA+ and by historical offerings those that apply a multi-faceted approach to advertising have better odds. Always keeping in mind how and what you are permitted to say and do.
Are relied upon at times during your RegA+ offering through management of ongoing initiatives surrounding public relations, press, content production, marketing and editorial calendars. They can sometimes be a one stop shop for all your general communications requirements.
Communication is key and frequent communication is better. Investors are maturing in this private capital market space and with that so to are their expectations. Be prepared with a full array of communication tools and templates for pre, during and post raise for your shareholders.
Today publishing is made easy and there’s an array of activities to make information, literature and other content available to the public for free. Creating content and becoming widely discoverable is a great tactic through printed works, books, newspapers, and magazines. Also digital information including electronic publishing ebooks, academic journals, micropublishing, websites, blogs, video and more.
It almost goes without saying, being able to take full advantage of social media as a communication channel is important. Through vetting the do’s and don’ts with your BD, Social media is a great tactic employed in-house or through an external agency.
An effective means to host online investor presentations. Perfect practice, makes perfect pitch. Be ready, anticipate questions, know your numbers and control your webinar by following up with questions or one-on-one’s post meeting.
Create Invest Button
The KoreConX team has this down to a science. With globally customizable compliance built-in, seamless KYC & AML, private label branding and full integration capability this Invest Button can live anywhere on your company website
Tracking Your Live Offering
Did you know you’re in control? KoreConX provides you visibility when visibility may not be otherwise available. View who’s invested, how much and many other investment details.
Kickstart Your RegA+
Download our FREE ebook and learn all the ropes to kickstart your RegA+ process.
This is also the stage to create your “Invest Now” button so that when your investors visit your site they will have a completely branded mobile ready experience and never have to leave your site. This is your raise and you’ll be spending marketing budget so why not have those dollars go to work for the brand you’ve built.
- Placed on company websites or multiple websites
- Mobile ready
- Investor to invest, private label, look and feel
- Subscription Agreement
- Submits to Compliance to review
The investor also expects that they’ll be able to view and be kept in the loop about their investment. This is why we pack a bunch of features in the Portfolio so that you have all you require with KoreConX
- Investor invited to Dashboard when they initiate investment
- Investor provided a dashboard to monitor the investment process
- To provide additional information if needed
Your fundraising journey also involves key partners such as your selected Broker Dealer. KoreConX makes it simple and provides the features they require to keep you on-side with the Regulators. AML/KYC and investor suitability is fully integrated, ready for review and record keeping capable.
- Compliance management platform for your broker-dealer
- Compliance officer to review KYC, ID, AML suitability for the investor
- Compliance officer approves and closes investor
- Then the message is sent to the shareholder with anupdate
The Cap Table is essential for any company raising capital. This is also why we include it in our freemium model. We have designed this area to be fully automated and in doing so it can drastically simplify your time and management efforts
- Once an investor is approved and closed, information is moved to your cap table realtime
- As the cap table is updated your registered transfer agent is reviewing transactions details
- Your shareholders are invited to your website to login to view their holdings, news releases, updates
Congrats your investor is now fully invested as a shareholder. The Portfolio also serves as their holdings dashboard. With advanced functionality we make this area highly visual and intuitive.
- Shareholder logs in at the company website private label
- Shareholders view holdings in Portfolio
- A shareholder can view news releases, reports
- A shareholder can transfer their shares to other parties
- A shareholder can connect to the Registered Secondary Market to sell their shares
Additionally, with KoreConX and our KorePartner Rialto Markets a FINRA registered Broker Dealer we are the only all-in-one platform with a registered secondary market. Now your shareholders can enjoy more peace of mind knowing their investment has greater liquidity and they’re able to sell their investment on a secondary market.
- Shareholder able to list shares for sale
- New Investor can purchase the shares
Post secondary market sale you now revisit the cap table which is automatically updated once a transaction has occurred. The beauty is you have had to lift a finger and you are fully up to date on your cap table.
- Captable automatically updated information coming from Rialto Markets Registered ATS
- New holder invited to create an account
In light of the transaction above our KoreConX solution also advises both shareholder parties involved in the transaction and their Portfolio area are both simultaneously updated.
- Both shareholders portfolio are update
Join the all-in-one platform empowering private capital markets.
Free forever, KoreConX makes it easy for participants in private capital markets to manage their investment portfolios, raise capital, and meet global compliance standards along every step of the way.