The structure and terms of the offering can have a significant impact on the success of the raise. It’s highly recommended that you consult with your marketing partner (as well as legal of course) as you plan your offering to ensure you land on an offering structure and offering terms that are going to appeal to the types of investors you’ll be targeting.

Some things to keep in mind:

1. Create time-based incentives

• When possible, incorporate ways that create time-based investment deadlines into your offering. Investors that get in early before specific deadlines you set, will receive some sort of benefit for doing so.

2. Create amount based incentives

• When possible, incorporate ways to incentivize investors for investing higher dollar amounts.

3. Select the right minimum investment

• Choosing the right minimum is key for any type of capital raise. You want to find that sweet spot that isn’t too high, but also isn’t too low.

4. Don’t create unnecessary hurdles

• Don’t create any unnecessary hurdles that will impede your ability to carry out a successful raise. I’ve witnessed many times in the past where issuers received input that they ran with only to end up regretting they did so as the raise progressed.
• One major example of this I saw was a first-time Reg A issuer that had a self-imposed investment minimum outlined in their Form 1-A which essentially required that their funds remain in escrow until they reach a threshold of $750K into their offering. This essentially killed the offering as the issuer was not able to reinvest any of their early funds raised back into the offering to sustain the offering. They ended up having to file amendments with the SEC to remove this limitation so that they could continue, but it cost the issuer valuable time and money to remove this.