The advent of the Internet has provided private companies with a powerful tool that allows the capability to cost effectively introduce their opportunity to a large number of potential investors. There are many web-based services available that are specifically designed to promote private investment opportunities. Internet marketing is a proven way to locate potential investors.The problem is that most companies are severely hampering their ability to effectively use these Internet resources to raise capital because they are using only a business plan to promote their investment opportunity.
Most of the investors that will be contacted via the Internet (whether through your corporate site or on a commercial marketing site) will not have the capability to capitalize an entire transaction - thus being able to accommodate a pool of these investors in a sophisticated and legal manner becomes critical. A Regulation D Offering will allow you to make the most out of marketing your opportunity to investors via the Internet.
Savvy companies are also providing links to their private placement memorandum and subscription materials on their corporate websites so that interested parties can acquire the investment documents online. These documents are password protected - thus the investor must pass through an investor suitability questionnaire first before they are allowed access to the offering documents. This turns your corporate website - and the traffic that it encounters everyday - into a resource for locating potential investors.