Blog Old

KorePartner Spotlight: Richard Heft, President of Ext. Marketing

Posted on by Oscar Jofre Tags: , , , , , ,

Richard Heft is the President at Ext. Marketing, a full-service marketing firm that helps companies attract potential investors to apply their marketing strategy and achieve their communications objectives. Richard has over 20 years of experience in the marketing and communications industry, focusing on the financial services sector. In 2021, Richard and his co-author published The Ascendant Advisor, a book about marketing and content strategies for advisors to grow their businesses. 

 

We recently sat down with Richard to discuss his company, experience, and partnership with KoreConX.

 

Q: Why did you become involved in this industry?

A: Ext. has spent almost a decade and a half helping financial services firms translate their business objectives into cutting-edge marketing campaigns for the retail and institutional spaces. During this time, we also began to recognize that we would truly be a full-service marketing leader if we could help our clients reach a limitless number of online retail investors through various social channels. The power of these retail investors is that they not only have an almost unlimited appetite to consume information online, but they are also able to invest how they want, when they want, and where they want on the increasing number of self-managed platforms. We launched Ext. Digital to help companies in virtually all industries identify their target retail audience, create messaging that will resonate with that audience, and tailor their conversion funnel to ensure their brands and investment offerings stand out in a somewhat crowded marketplace.

 

Q: What services does your company provide for offerings?

A: We offer end-to-end digital marketing strategies, content creation, media activation, and ad buys. We also provide access to our proprietary financial influencer network to help amplify the audience for our client’s news and updates.

 

Q: What are your unique areas of expertise?

A: Beyond our unparalleled content creation and transparency regarding their ad spend, our clients benefit from our constant A/B testing & optimization approach to ensure their media dollars are continuously put to best use.

 

Q: What excites you about this industry?

A: There is a lot that excites me about this industry! I strongly believe that, even when the global economy looks uncertain, there is a massive opportunity for companies looking to raise capital to reach the right people with their stories. And the people they are reaching have never been more motivated and able to invest in the opportunities that appeal to them.

 

Q: How is a partnership with KoreConX right for your company?

A: KoreConX has always been an excellent, reliable partner to Ext. Digital. We have been thrilled to introduce our clients to KoreConX’s holistic platform, given the trust we have in Oscar, Peter, and the entire KoreConX team, and we have worked with many companies that we know are going to be leaders in their respective industries as a result of introductions made by KoreConX.

 

Q: Anything else you would like to add about RegA, RegCF, or any other topic you might find relevant for your company, our partnership, and the ecosystem you are part of?

A: I encourage any company exploring a capital raise through a Reg A, Reg D, or Reg CF issue to find partners they can trust over their entire journey. I firmly believe Ext. Digital is the ideal digital marketing partner for any company looking to take the next step in its journey.

 

Potential and Impact of the Cannabis Sector on Jobs Creation

Posted on by Oscar Jofre Tags: , , ,

The cannabis sector is growing fast, and with it, the potential for job creation. A recent study shows that the cannabis industry could create and support an additional 1,250,000+ jobs. As legalization spreads, it creates opportunities for all types of workers and the industry as a whole. Plus, as more companies utilize JOBS Act exemptions, the capital to support this growth is readily available.

 

Expected Job Creation Growth in the Cannabis Industry

 

As the cannabis industry continues to grow at an unprecedented rate, the need for qualified employees in all areas of the business increases. Vangst, a leading cannabis recruiting agency, filled over 150,000 positions in 2021 alone. With this level of growth projected to continue into 2022 and beyond, it’s evident that the cannabis sector is a significant player in job creation.

 

To get a better understanding of the employment landscape within the cannabis industry, Vangst surveyed over 1,000 professionals working in the space. The results showed that the majority of employees (34.4%) have less than a year’s experience in cannabis. On the other hand, over 30% have been working in the industry for five years or more, indicating opportunities for both experienced professionals and those just starting in their careers. 

 

According to a job report from Leafly, the legal cannabis industry supports the equivalent of 428,059 full-time jobs and created an average of 280 new jobs a day in 2021. In that year, according to New Frontier, legal cannabis sales reached $26.5 billion for the year, and this is expected to reach $32 billion by the end of 2022. This data also calculated the CAGR of the cannabis industry and expects it to grow 11% between 2020 and 2030 to reach more than $57 billion.

 

What This Means for Employment

 

With the sector experiencing its fifth consecutive year of 27% or more annual job growth, the demand for qualified employees in all business areas, from cultivation and production to sales and marketing, will continue to rise. Plus, with 49% of Americans trying cannabis at some point in their lifetime, it is evident that cannabis use is not going anywhere.  Indeed, consumer cannabis use increased by 50% during the pandemic.

 

The cannabis industry is an exciting and ever-changing field that offers ample opportunities for growth and advancement. Cannabis job creation is not only limited to those working in the plant-touching side of the business. The industry provides opportunities for professionals in a wide range of fields, from accounting and finance to human resources and marketing. This means that job creation will not slow down as the industry crosses over into other markets and types of products, providing a unique opportunity for those looking for a career change or those just starting their professional lives.

 

With its fifth consecutive year of high job growth, the cannabis sector shows no signs of slowing. As cannabis is legalized in more states, the industry’s growth is expected to continue to drive employment, especially as cannabis employment growth rates are quickly surpassing other industries.

 

A $30 Trillion Market in 8 Years: Shari Noonan Speaks with Crowdfund Insider

Posted on by Oscar Jofre Tags: , , , , , , , , 2 Comments on A $30 Trillion Market in 8 Years: Shari Noonan Speaks with Crowdfund Insider

The private securities market is predicted to grow exponentially in the next decade, with a total value of $30 trillion by 2030. Recently, Shari Noonan, CEO of Rialto Markets spoke to Crowdfund Insider about this remarkable trajectory.

 

There are several reasons we can anticipate this tremendous growth. First, the JOBS Act introduced powerful exemptions to SEC registration, removing or easing many of the administrative barriers that had stood in the way of capital formation. As well, new tools have emerged to help companies seek capital in online capital markets.

 

Plus, these online tools mean that companies now have access to a wider pool of potential investors that had been traditionally unavailable to the private market. On this subject, Shari Noonan said, “Rialto Markets enables not only venture and institutional investing but also retail investing. This diversity can help private companies seeking capital find a wider range of investors, which might mitigate some of the shakiness in the economy.” With traditional forms of investment, reaching niche investors used to be nearly impossible. It’s a different story online because finding niches is a huge part of what the online world is all about. So whether a company is in real estate, ice cream, or electric vehicles, online platforms make it easier to find the right investors who support unique, innovative companies.

 

So far, the interest in investment through JOBS Act exemptions has not slowed down. “We saw a 1,021% increase in equity crowdfunding in 2021 to $113.52 billion, so that level of growth may be difficult to sustain, but it will still be a strong 2022 for the Reg CF and RegA+ investment markets,” added Shari.

 

So, what does this all mean for investors? Well, the private securities market is set to continue growing at a rapid pace, and with the help of companies like Rialto Markets, it’s easier than ever to get involved. And if it’s easier for investors to get involved, then it’s easier for companies to find investors.

 

For players in the private capital market, like Rialto, the mission is to create a fully democratized ecosystem. Shari believes that “​​this enables private companies looking to raise capital to expand their net and reach a much wider and more diverse investor base, providing investors with access to investments at an earlier stage than previously.” 

 

Continued growth will require a robust infrastructure. “We will continue to expand services to bring greater efficiency and scale to the private markets,” said Noonan when asked about Rialto’s plans for the future. This will also include support for new types of securities, and Rialto is already prepared for the expansion of digital securities. Shari points out that “many NFTs are securities that also live natively on a blockchain. The right way forward is to wrap NFTs into the regulatory framework by registering them as Reg CFs or Reg As, then approving and tracking ownership on a next-gen SEC-registered Transfer Agent.” This would allow the industry to test new technologies while adhering to securities laws that protect issuers and investors alike.

 

The private capital market is growing at an incredible rate as issuers increasingly turn to private capital sources for their funding needs and investors explore new types of investments. With so much growth potential ahead, the private capital market is poised to introduce new technologies, efficiencies, and opportunities to the financial world.

 

Oscar Jofre Speaks at Franchising Event in Denver, CO

Posted on by Oscar Jofre Tags: , , , , , , , ,

We are always looking for ways to help our clients and the franchise community grow and succeed. That’s why we’re excited that our CEO, Oscar Jofre, got a chance to speak at the “Living in the Roaring 20s: Looking Ahead to a Wild Decade in Franchising” event in Denver, Colorado this week. The event featured dynamic panels of industry leaders. It was a great opportunity to take advantage of a hands-on learning experience, designed to help franchise businesses reach new heights and share key lessons learned from a global pandemic, tools and strategies for risk mitigation, and explore critical trends and new opportunities on the horizon.

 

Oscar was there to share his valuable expertise regarding raising capital. He joined two panels to discuss how crowdfunding can be used by franchisees and franchisors and how NFTs and cryptocurrencies are permanently altering the franchise landscape.

 

In addition to Oscar’s presentation, the event also featured panels on franchise strategy, industry outlook, sustainability, post-COVID best practices, navigating mergers and acquisitions, and much more of interest to anyone in the franchise industry, from those just starting to explore franchising to established professionals looking for ways to take their businesses to the next level. 

 

KoreConX is proud to have been a sponsor of this event, and we hope to see you at the next one!

Investment Compliance: It’s Not Just About Complying

Posted on by Oscar Jofre Tags: , , ,

Compliance can be a complex, dynamic task for companies raising capital, and sometimes might feel like an unnecessary burden just to stay in the good books of regulators and their seemingly arbitrary requirements. However, compliance can have other added benefits when managed correctly and introduces new efficiencies and trust within the regulatory environment. Some of these benefits include:

 

  1. Avoid unnecessary costs and delays: When it comes to managing compliance, one of the most important things to keep in mind is that it helps protect your company from regulatory risk. While failure to meet regulatory requirements can itself create costly delays, taking shortcuts and merely going through the motions of compliance can create a risk of much more costly liabilities and litigation. 

 

  1. Understand shareholder base: Another benefit of managing compliance instead of controlling it is that it allows you to understand your shareholder base better, and identify and engage with your shareholders more effectively. When you know who is investing in your company, you can tailor your messaging, convert investors into ambassadors and build trust and confidence with investors.

 

  1. Identify high-risk investors: One of the critical functions of compliance is to help identify and flag high-risk investors, protecting the company from both regulatory and reputational risks. Is the investor on any blacklists that would make them ineligible to invest? By managing compliance, you can more easily identify investors who may pose a threat to the company and take steps to mitigate that risk.

 

  1. Make continuous improvements: Managing compliance instead of controlling it helps create a continuous improvement process. Active engagement with the compliance process can help you to identify potential shortcomings and anticipate regulatory changes before they happen. This gives you the foresight to adapt when they come, or even allows you to enjoy a competitive advantage over competitors who may be blindsided. This is critical in the ever-changing landscape of compliance.

 

Investment compliance is not about control but learning to effectively manage this dynamic task. By understanding and managing compliance, companies can avoid costly penalties and fines, better understand their shareholder base, identify and flag high-risk investors, ensure that all the correct information about an investor is captured, and create a process for continuous improvement. 

 

Examining RegCF Trends

Posted on by Oscar Jofre Tags: , , ,

The internet has put financial literacy resources at the tip of our fingers and has done the same for investment opportunities. Whether it’s an app that allows you to buy and sell stock or cryptocurrencies, or a website that allows you to invest in a company that could be the next Uber, Tesla, or SpaceX, the average person now has access to new and exciting ways to invest that never existed before. 

 

The private capital market has been transformed by the JOBS Act and its exemptions, like Regulation CF, that allow companies to raise growth-fueling sums of money from accredited and nonaccredited investors alike. And, with companies now able to raise larger amounts than ever before, Reg CF investments are enjoying increasing popularity. This type of crowdfunding allows entrepreneurs to tap into the wallets of thousands of potential investors, providing not only the capital they need but also new networks, brand ambassadors, and more.

 

While the number of companies raising capital online decreased between 2018 and 2019, this number rebounded substantially since according to data shared by KingsCrowd. Between 2019 and 2020, the number of deals nearly doubled from 541 to 1024. The 2019 decrease could be attributed to multiple factors. One possible reason is that online crowdfunding was still considered a new space at the time, so investors and founders still had their reservations. The increased number of deals in 2020, 2021, and so far throughout 2022, suggests that this hesitation is starting to dissipate. This is supported by the tremendous milestone RegCF reached last year; over $1 billion has been raised through this exemption This could be due to a better understanding of how crowdfunding works or increased confidence in the industry as a whole. Whatever the reason, it’s clear that RegCF is becoming more popular among startups and investors alike.

 

When the COVID-19 pandemic began spreading across the US in the spring of 2020, it crippled and even bankrupted thousands of businesses. However, startups that raised capital with Reg CF didn’t appear to be affected the same way, possibly because of exploding demand in industries like telehealth, med-tech and delivery services, creating urgent new investment opportunities, coupled with large numbers of potential investors suddenly working from home and becoming more exposed to and accepting of online transactions and crowdfunding campaigns. 

 

This trend can also be seen in VC funding, which decreased during 2020 by 9% and 23% for the first quarter and second quarter of the year. The negative effect of the pandemic on VC funding largely impacted female founders more heavily than male founders, with female founders receiving only 2.3% of VC funding in 2020. That drove many founders to seek alternatives, which may explain some of the uptick in crowdfunding deals.

 

2022 is seeing a good flow of new crowdfunding deals as well. We’ve seen 429 new deals in the first quarter, according to KingsCrowd, and this number is only expected to increase as the number of founders and investors who recognize the power of crowdfunding continues to grow. With as little as $100, non-accredited investors can now own a part of a company and support a cause they believe in. This democratizes startup investing like never before.

 

Other trends we’re seeing are an increase in the mean amount raised per deal and a decrease in the median amount raised per deal, suggesting that while the biggest deals are getting bigger, the number of smaller deals is also growing, reflecting more participation by small businesses and small investors This has increased the amount of capital raised through RegCF from $239 million in 2020 to $1.1 billion in 2021, and this number is expected to double by the end of 2022. This means that more money is being funneled into startups and small businesses than ever before.

 

Will we see more startups turn to crowdfunding to compensate for the lack of VC funding? Only time will tell, but we’re excited to see how the rest of the year unfolds for the Reg CF community.

 

Graphical art representing the RegCF brochure available for download

Private Capital Trends for the Cannabis Industry

Posted on by Oscar Jofre Tags: , , , , ,

As the cannabis industry continues to grow, so does the need for new methods of raising capital. Revenues have doubled over the past three years, and the industry is on track to reach $25 billion annually by 2025, or $14.1 billion for CBD alone, but traditional methods such as bank loans and private equity are often unavailable to cannabis businesses, forcing them to turn to the private market for capital. While often more flexible and forgiving than the public market, the private market can be a challenging place to raise capital without the knowledge and experience. 

 

The Constantly Growing Industry of Cannabis

 

The cannabis industry is changing, and new opportunities for entrepreneurs are coming. Thanks to the JOBS Act, businesses in the cannabis industry can now use regulations like A+ and CF to raise capital from the general public. This offers several advantages, particularly the ability to reach a larger pool of investors and thus raise larger sums of money.

 

However, the most significant advantage of Reg A+ is that it allows businesses to retain more control over their company. Traditional methods of raising capital typically require businesses to give up a larger share of their equity. This is especially beneficial for businesses in the cannabis industry, which is still in its early stages and is constantly changing. With Reg A+, companies can raise capital from the general public while avoiding the costly process of going public. With more control over their company, and the ability to avoid costly IPOs, firms in the cannabis industry can better position themselves for success.

 

Investing in the Private Cannabis Market

 

The private market for cannabis investments is growing rapidly as the legalization of cannabis spreads throughout the US. Entrepreneurs are looking to get in on the ground floor of this new industry, and there are several options available to them when it comes to investing in cannabis. 

 

Private CBD companies, such as Stigma Cannabis and UNITY Wellness, are turning to online capital raising to fund their growth. These diverse companies focus on many aspects of the industry, from CBD supplements to CBD skincare products, and represent only two of many companies innovating in this space. Regulations A and CF provide excellent opportunities for these companies and the investors looking to support them. 

 

Getting started as an investor in the rapidly evolving private cannabis industry can be scary, but it’s also an exciting opportunity with many challenges and rewards. You can make the most of this unique opportunity by educating yourself on the process and available resources, and looking for and researching a private cannabis company that resonates with you as an investor. 

 

For cannabis companies looking to raise capital, the process begins by identifying the team that will help you reach your goals, such as experienced securities lawyers, broker-dealers, investor acquisition firms, transfer agents, and other parties critical to your success. However, you should also consider how you can turn customers into investors and brand ambassadors as they will be essential throughout your capital-raising journey.

 

Cannabis Industry Trends in 2022

 

Cannabis companies are benefiting from increasing consumer acceptance of the product in 2022. In states where cannabis is legal, tax revenue from sales has been significantly higher than predicted. This trend will likely continue as more states legalize cannabis, and the industry becomes more mainstream. It could also remove many barriers to entry for potential investors and entrepreneurs looking to enter the space.

 

Despite the current political environment, which is generally unfavorable to cannabis companies, several bills are making their way through Congress that could positively impact the industry. The SAFE Banking Act, for example, would allow FDIC-insured banks to offer their services to cannabis companies, providing much-needed financial infrastructure. 

 

The industry will almost certainly continue to grow because of the acceptance of cannabis and its use in a variety of products. The cannabis plant produces several compounds with medical, industrial and commercial applications, with THC and CBD only the most well-known.  Developing these products and bringing them to market is creating more jobs, stimulating the economy, and becoming more accepted by people from all walks of life.

 

Growth in the cannabis industry is not likely to slow down anytime soon. Investors and companies interested in the industry should keep a close eye on developments at the state and federal levels and the financial health of companies in the space. With the right mix of factors, the cannabis industry could achieve even greater heights in the years to come.

 

Is Equity Crowdfunding Immune to Market Volatility?

Posted on by Oscar Jofre Tags: , , ,

In a recent TechCrunch article, author Rebecca Szkutak asserts, “With the fundraising climate now showing cloudy skies, equity crowdfunding is getting ready for a field day.” The stigma associated with crowdfunding is reversing; once viewed as a fundraising method for companies “not good enough” for venture capital, it has grown substantially in the past few years. Better yet, 2022 is “​​poised to be monumental for equity crowdfunding.” From the start of this year to the end of May, companies have raised $215 million through this method of capital raising, an increase of $200 million from the same period last year. Favorable evolutions to regulations in this space are only contributing to this growth. 

It will be exciting to see how these trends continue to develop and enable companies to raise capital through to the end of the year. To read the full article on TechCrunch, click here.

What Independence Day means to KoreConX

Posted on by Peter Daneyko

Independence Day is a really iconic holiday. Parades and fireworks, concerts and cookouts, celebrations of what America is and what it aspires to be, surrounded by that patriotic pride. Independence Day has special meaning to us at KoreConx, because we have always believed our mission to be the democratization of the American Dream. 

 

Big things start in small garages, like the ones where Steve Jobs, Steve Wozniak and Ronald Wayne started planting the Apple seed, or where Bill Gates and Paul Allen started looking at the future through Windows. But it was difficult to raise capital in those days, and those guys were lucky. How many other great ideas never got off the ground, simply because someone couldn’t find the investors to make it happen? How many would-be investors missed out on these opportunities, because they didn’t have the means to hear about them?

 

We set out to change that when KoreConX was founded back in 2016. The private capital market is 4 times the size of the public market, and there are more great ideas in garages than ever before. Our mission is to bring these things together,  to jumpstart innovation, create jobs, and help more people realize their own version of the American Dream. 

 

Whether you are inside your garage or you are looking for a good opportunity to invest, we are sure that is where true independence lies. We wish you a glorious Independence Day of celebration, parades and opportunities ahead.

 

Oscar A Jofre

What is KYC?

Posted on by Oscar Jofre Tags: , , , , , , 1 Comment on What is KYC?

Each year, an estimated $2 trillion from illicit activities is laundered. This poses a significant challenge to financial institutions, requiring onerous efforts to verify that individuals involved in financial transactions are who they claim to be. This is where KYC, or Know Your Client, practices come into play. KYC compliance is at the core of any successful risk management strategy and ensures that financial institutions are not inadvertently aiding criminal activity. Let’s dive into KYC a little deeper.

 

What is KYC?

 

Regulations such as AML (anti-money-laundering), and eIDAS (electronic Identification, Authentication and Trust Services) exist to help detect and prevent financial crime, and to reduce the ability of terrorists to fund their operations.

By identifying their clients, financial institutions can help reduce the possibility of doing business with criminals or those who may be involved in criminal activity. KYC is quite complex: this means collecting various personal and professional information from their clients, verifying it, and assessing the risk the clients pose for money laundering.

There is a lot of database and document research involved in this stage, which helps assure the money is traceable: maybe dividends from investments, salaries or any other licit way of making money, with a reliable source.

 

How is KYC Conducted? 


The steps in a KYC procedure vary depending on the organization, but they typically include the following:

 

  1. Client identification: Identify the client and collect certain information, such as their name, date of birth, national identification (SSN, SIN, etc) and address.
  2. Client verification:Verify that the client is who they say they are, typically by examining documents such as a passport or driver’s license.
  3. Risk assessment: Assess the client’s risk level. This helps to determine what type of information needs to be collected from them and how often they will need to be screened. This step depends on the kind of business the client is involved in and each company can decide how much information they need.
  4. KYC compliance: Ensure that the organization complies with KYC regulations. This includes maintaining accurate records and keeping up-to-date with changes to KYC regulations.

 

By following these steps, organizations can effectively implement a KYC procedure.

 

What are the benefits of KYC? 

 

There are many benefits to implementing KYC compliance measures, including:

 

  • Prevention of financial crime: By identifying clients and understanding their financial activities, organizations can help prevent criminal activity such as money laundering.
  • Enhanced client protection: Organizations can better protect their clients from fraud and identity theft by knowing who their clients are. This is especially beneficial to banks or other institutions that are common targets of such crimes.
  • Improved client experience: By streamlining the KYC process and making it more user-friendly, organizations can improve the client experience. Clients must go through verification process with transparency and with clear goals.
  • Increased transparency: KYC compliance measures help create a more transparent environment for both organizations and their clients by sharing information.

 

What are the challenges of KYC? 

 

Despite the many benefits of KYC, there are also some challenges associated with it, such as:

 

  • Cost: the KYC process can be costly for organizations, particularly small businesses. This is because it requires using resources, such as staff time, to collect and verify client information.
  • Client privacy: some clients may be concerned about the amount of personal information that is required during the KYC process. This can potentially lead to identity theft or other privacy breaches.
  • Compliance: the KYC process must be followed correctly to be effective. This can be challenging for organizations, especially if they have a large number of clients.

 

What is the difference between KYC and AML? 

 

AML, or Anti-Money Laundering, is a process that is used to prevent the illicit use of financial services. This can include money laundering, terrorist financing, and other illegal activities. KYC compliance measures are a part of AML compliance, but they are not the same thing. KYC compliance measures focus specifically on the identification of clients, while AML compliance measures also include monitoring client activity to look for suspicious behavior.

 

KYC is a necessary process that can help to prevent financial crime. It involves collecting certain information from clients and using it to verify their identity to help protect against criminal activity. While KYC compliance measures can be costly and challenging to implement, they are essential to AML compliance, and KYC efforts can protect your company from financial crime.

What Kind of Data is Relevant for Private Equity?

Posted on by Oscar Jofre Tags: , , , , , ,

The world of private equity is shrouded in a certain amount of mystery. What data do private equity firms use when making their investment decisions? What kind of research is needed to identify opportunities in this market? With the private equity markets raising over $665 billion in 2021, up from $521 billion in 2020, the use of data for private firms is becoming more crucial than ever. This blog post will look at the data types most relevant for private equity investors and how this information can benefit them in certain situations.

 

The Role of Data in Private Equity

 

Private equity is a type of investment generally reserved for high-net-worth individuals, venture capitalists, and institutional investors. However, these opportunities are being afforded to more individual investors thanks to the JOBS Act. It is an investment strategy that involves buying stakes in companies that are not publicly traded on stock markets. Private equity firms, in particular, typically have a longer time horizon for their investments than other types of investors and often are willing to invest in companies with high growth potential.

 

For these investments, investors may rely heavily on multiple data sources to provide insight and justify investment decisions. These sources may include:

 

  • Financial data is relevant to PE firms because of the need to monitor a company’s financial health. This data can help PE firms identify potential risks and flag companies that may be in trouble. Financial data can also help firms assess a company’s growth potential, allowing them to make more informed investment decisions. 
  • Operational data is relevant to PE firms because it helps them understand a company’s business model and evaluate its efficiency. This data can help firms identify opportunities for cost savings and process improvements. 
  • Market data lets PE firms know what’s happening in specific industries and understand where there might be opportunities for companies they own to gain or lose market share. It also helps firms keep tabs on broader industry trends that could present opportunities or threats to their portfolio companies.
  • Alternative data allows firms to track a company’s performance in real-time and make more informed investment decisions.

 

Data is an essential part of the private equity investment process, which firms must consider when making investment decisions. Private equity firms often rely on proprietary data sources, such as data from the companies they own or have invested in, to make investment decisions. They also use external data sources, such as public market data, to corroborate what they see from their data sources. 

 

The Importance of Data

 

With the increasing importance of various types of data, private equity firms must be able to access and analyze this data to stay ahead of the competition. Firms that can effectively use data will be well-positioned to make informed investment decisions, improve their portfolio companies’ performance, and generate better returns for their investors.

 

Beyond traditional data sources, alternative data is becoming increasingly important for private equity firms. This data can come from various sources and helps PE firms better understand the companies they invest in, make better investment decisions, and provide more hands-on operational support to their portfolio companies. Alternative data can help PE firms corroborate what they are being told and get a complete picture of the company they are interested in investing in. Alternative data can also help with operational decisions after an investment has been made. The ability to crunch a company’s proprietary data and glean insights into broader industry trends is crucial to helping a private equity company increase its market share, improve operational efficiency, and ultimately time the exit correctly. Therefore, a practical application of alternative data can create a virtuous cycle for private equity firms: better investment strategy, selection, execution, management, and realization, driving improved returns and increased LP demand. 

 

Any one source of data may not provide the entire picture of a potential investment, making it critical for private equity investors to analyze a wealth of data before making an investment decision. Overall, data can help to illustrate patterns and opportunities within the private equity space.

Partnership Strengthens Growing Industries Raising Private Capital

Posted on by Jason Futko Tags: , , ,

In another strategic move, KoreConX All-In-One Platform announces partnership with Fundopolis, an online investment bank specializing in exempt offerings and private placement capital allocation, as a way to keep creating more opportunities for entrepreneurs.

At first, Fundopolis was a KoreClient, attracted by its industry leading state of the art platform dedicated to processing and recordkeeping issuer and investor transactions in Exempt Capital-Raising Offerings, specifically RegCF and RegA+ offerings. Fundopolis uses KoreConX´s technology for their capital market activities.

As KorePartners, Fundopolis, a FINRA Broker-dealer registered in all 50 states, is eager to make their expertise available to the whole private capital ecosystem. With expertise in sectors such as real estate and cannabis, the online bank offers experience in these ever-expanding industries, guiding private companies as they navigate the complex regulatory space while introducing them to investors who share their vision for the future. Fundopolis is also part of the ecosystem for RegD, RegCF, and RegA+ offerings providing the FINRA broker dealer services to help companies raise capital.

“Beyond that, we understand that the investment landscape is constantly changing, and we pride ourselves on approaching the entire process with an eye on what is possible. As a recordkeeping transfer agent and escrow platform, we believe KoreConX is the perfect partner for Fundopolis, providing access to a vast ecosystem of investors and issuers,” says Bert Pearsall, CEO & Managing Principal at Fundopolis.

Co-founder and CEO at KoreConX, Oscar A. Jofre, acknowledges Fundopolis as a highly rated KorePartner. “When we first met, as a KoreClient, we saw a great potential and a lot of opportunities ahead of us. Since our solution unites tools to securely and efficiently manage business data and facilitate compliance during all the capital raising process regardless of where they are in this cycle, it was only natural to add them to our valuable team of KorePartners.”

About KoreConX

Founded in 2016, KoreConX is the first secure, All-In-One platform that manages private companies’ capital market activity and stakeholder communications. With an innovative approach and to ensure compliance with securities regulations and corporate law, KoreConX offers a single environment to connect companies to the capital markets and now secondary markets. Additionally, investors, broker-dealers, law firms, accountants and investor acquisition firms, all leverage our eco-system solution. For investor relations and fundraising, the platform enables private companies to share and manage corporate records and investments: it assists with portfolio management, capitalization table and shareholder management, virtual minute book, security registration, transfer agent services, and virtual deal rooms for raising capital.

KoreConX All-In-One Platform announces partnership with Fundopolis. Read more in our blog.

Recapping Our All-Star June Podcast Guests

Posted on by Oscar Jofre Tags: , , , , , , , , , ,

Throughout June, we were happy to host another set of excellent speakers to add to our KoreTalkX series, covering timely topics like digital securities, RegA+ for cannabis, and the potential RegA+ unlocks for companies in the Medtech space. Keep reading to explore each episode in more depth. 

 

KoreTalkX #5: Digital securities matter; tokens, coins, and regulations.

 

The June lineup of KoreTalks kicked off with episode #5, during which Andrew Bull discussed the future of digital assets and their impact on the financial industry. As digital securities enter the mainstream, their potential to protect issuers and create opportunities for investors grows with the transparency they can offer. However, education will continue to be an important factor in driving the expansion of the digital asset space. This conversation is helpful for anyone interested in learning more about digital assets and their impact on the financial industry. With their experience in traditional finance and digital assets, Andrew Bull and Dr. Garimella provide valuable insights into this growing industry based on their observations of the industry’s development. 

 

KoreTalkX #6: Cannabis businesses need capital. Let’s raise it.

 

Reg A+ is a powerful tool for companies in the private sector, and it is no different for those in the cannabis industry. In KoreTalkX #6, Brianna Martyn of Big Stock Tips discussed the importance of due diligence when investing in the cannabis industry, advising investors to research and understand each company’s fundamentals before investing. Brianna spoke with Jessica Trapani of KoreConX about our role in helping private companies raise up to $75 million from brand advocates and customers without going public. 

 

KoreTalk #7: The MedTech ecosystem is booming.

 

The JOBS Act was signed into law two decades ago, yet we are just beginning to see more Medtech companies utilize the RegA+ exemption to raise capital. In the last KoreTalkX episode for June, Stephen Brock and Peter Daneyko discussed the benefits of the Jobs Act and how it will help businesses grow and create jobs. Especially in the Medtech space, which is traditionally capital-intensive, RegA+ provides a tremendous opportunity for companies to raise needed capital while retaining more ownership of their company. Additionally, the speakers also discuss new, game-changing opportunities for investors, who are now able to invest in companies that align with deeply personal values. 

 

If you’d like to watch any of these episodes in full, you can catch them on your favorite podcast platform. Click here to view episodes on Spotify, Amazon, or iTunes.

It is time to meet your MedTech A+ Team

Posted on by Oscar Jofre Tags: , , ,

With our KoreSummit on RegA + for Medtech companies quickly approaching, we’d like to introduce the speakers we are thrilled to have for this informative event an exciting and life-changing industry. It is time to meet your MedTech A+ Team.

 

Dawson Russel
A branding and marketing expert with over ten years of experience in the industry. He has helped over 100 companies build their brands and tell their stories to the right audience thanks to his specialty in creative storytelling. His company, Capital Raise Agency, provides full-scale branding, marketing strategy, website design and development, video production, lead generation, social media, email, native ad campaign management, and more. At the upcoming Medtech KoreSummit event, Dawson will be speaking about how to build a brand and tell a story that captivates an audience.

 

Scott Pantel
President and founder of Life Science Intelligence, a company that ​​provides deep knowledge of the healthcare industry, guiding clients with actionable data to identify significant trends in medical devices, diagnostic, and digital health technologies that are rapidly evolving in the industry. At the upcoming KoreSummit, Scott will be discussing where Medtech companies can begin when embarking on their capital-raising journey. His wealth of knowledge on the topic will help entrepreneurs better understand the potential of Regulation A+ and how it can be used to grow their businesses. 

 

Stephen Brock
CEO of Medical Funding Professionals, a company that helps innovative companies in the healthcare field gain access to capital. Stephen is also passionate about ensuring founders, early employees, and investors retain control of their companies. For many companies in Medtech, this means introducing them to the potential of Regulation A+, which is just beginning to see more adoption by companies in this space. Stephens’s expertise in the Medtech field will shine through in his participation in the event’s panels.

 

Douglas Ruark
A corporate finance expert who has been involved in the securities industry for over two decades. He has experience with SEC-exempt securities offerings and provides advisory services for clients preparing and executing Regulation D, Regulation CF, and Regulation A+ offerings. We are excited for Douglas to share his knowledge at the KoreSummit event, where he will be speaking about Form 1A and the regulatory requirements for filing. 

 

Shari Noonan
CEO and Co-Founder of Rialto Markets, has over 20 years of experience in financial services, giving her unique insight into the private market. Shari will be joining the event to discuss the topic: “Form 1A: What is it, the regulatory requirements, and all you need to complete the filling and go live.” This makes her a valuable speaker at the upcoming event as she can offer information on the topic from both a regulatory and technological perspective for MedTech companies. 

 

Andrew Corn
Founder and CEO of E5A, a marketing firm specializing in RegA+ offerings. With over 25 years of experience in the industry, Andrew has a unique perspective on raising capital through marketing. He will be speaking at the upcoming KoreSummit on how Medtech companies can sell the story, not the stock. Through marketing, companies can reach a wider pool of potential investors, including those who are not accredited investors. Andrew brings his world-class knowledge of marketing Regulation A+ offers and acquiring the right investors for a company’s raise.

 

Nick Antaki
Corporate attorney with experience in securities offerings and private placements, providing legal services to small and medium-sized businesses, including entity structuring, regulatory strategy, trademarks, copyrights, and trade secrets. Nick’s experience will be valuable to KoreSummit attendees as they look to raise money for their businesses, and he joins his colleague Doug Ruark from Reg D Resources.

 

Joel Steinmetz
COO and co-founder of Rialto Markets, with over 20 years of experience in the financial services field. He saw the many obstacles issuers and investors faced in the private placement market, opening up the opportunity to bring efficiency to inefficient markets, and inspiring him to co-found Rialto Markets.

 

Lee Saba
CTO and Head of Market Structure at Rialto with over 20 years of experience in financial services. We are excited to hear Lee share his thoughts in this growing Reg A+ vertical.

 

Matthew McNamara
Managing Partner at Assurance Dimensions and has over 20 years of experience as a Certified Public Accountant. He specializes in SEC and private company audits, focusing on technology, manufacturing, retail, construction, nonprofit, and transportation industries. Given his broad experience in accounting and auditing, McNamara is well-positioned to provide valuable insights on financial reporting for MedTech businesses.

 

Andy Angelos
President of Forward Progress, a company that provides end-to-end solutions for investor marketing, lead generation, and customer acquisition campaigns. Their battle-tested strategies connect you with accredited and nonaccredited investors to provide growth capital for your business. Andy will be speaking at a talk on “sell the story, not the stock” at the upcoming KoreSummit, sharing his expertise on connecting with investors and delivering sustained growth. With his vast experience in marketing and capital acquisition, Andy will surely give an insightful discussion that will be valuable for anyone in attendance.

 

John Hayes
Co-founder and CEO of Raising Stakes Media, a company that provides marketing and advertising services for businesses hoping to raise capital through a Reg A+ offering. With over 25 years of experience in the media industry, John brings a wealth of knowledge to the table for effectively telling a company’s story.

 

Oscar Jofre
Co-founder, president, and CEO of KoreConX. He has long been a passionate advocate for expanding the private capital market to increase opportunities for companies and investors alike. Part of his mission at KoreConX is to establish an ecosystem of trusted partners that can help investors and issuers succeed through the JOBS Act exemptions. 

 

Peter Daneyko
KoreConX’s CRO and brings a wealth of knowledge to the table regarding business development, startups, and sales. He will be speaking at the KoreSummit about Secondary ATS and Form 1A: What is it, the regulatory requirements, and all you need to complete the filling. This is essential information for anyone in the MedTech industry looking to go live with Reg A+, as it can be challenging to navigate the regulatory landscape. 

 

Dr. Kiran Garimella
Chief Scientist & CTO at KoreConX, is a world-renowned expert in artificial intelligence and machine learning, with over 20 years of experience in the technology industry. His experience and expertise make him a valuable asset to the KoreSummit, and he will talk about preparing for your live offering and secondary ATS.

 

Amanda Grange
Transfer specialist with KoreConX and returning for the upcoming KoreSummit event. She brings her experience to the table to discuss what issuers should be aware of when going live and the preparations they need to make to set themselves up for potential success.

 

It’s not too late to sign up for the event. You can register for the half-day webinar event here. It’s completely free to attend! 

 

The Medtech A+ Team: An Upcoming KoreSummit Event

Posted on by Oscar Jofre Tags: , , , ,

KoreConX is excited for the upcoming KoreSummit event on Thursday, June 23rd. Our second event focused on the Medtech vertical, Thursday is a half-day event that dives into how Medtech companies can conduct a successful RegA+ offering. Kicking off at 1 PM EST, we’re excited for our KorePartners to join us in covering this exciting topic. Let’s dive into the schedule more below.

 

At 1 PM EST, KoreConX CEO Oscar Jofre will introduce the event with a warm welcome. The first panel at 1:10 PM will begin with an introduction to Reg A+ for a MedTech company. This opening panel features Oscar Jofre, Scot Pantel, and Stephen Brock.

 

Up next at 1:40 PM, five experts will take the virtual stage to talk about the preparation phase including what a Form 1A is and the regulatory requirements you need to complete the filing. Douglas Rurak, Matthew McNamara, Peter Danyeko, Nick Antaki, and Shari Noonan will be speaking on this panel. 

 

At 2:15 PM, the third panel kicks off with a discussion about going live. This panel will cover everything you need to know when preparing your live offering to ensure it is a success and will feature Kiran Gramiella, Shari Noonan, John Hayes, and broker-dealer Amanda Grange. From investor acquisition and issuance tech to broker-dealers, this panel will ensure participants will be prepared for their next capital raise.

 

The fourth panel takes place at 3:00 PM and is about how, when raising capital, it is vital to sell your company’s story, not just the stock. By learning how to tell a story, MedTech companies looking to raise capital will be able to connect with investors on a personal level and have a much better chance of success. Panelists will include Scott Pantel, Andy Angelos, John Hayes, Andrew Corn, and Dawson Russell sharing their wealth of experience on this topic.

 

At 3:40 PM, the 5th panel discusses the importance of a secondary ATS, what it is, and how to pick one that will best suit your needs. Lee Saba, Kiran Garimella, and Peter Danyeko will discuss their experience with ATSs and help you understand why having one is so important. 

 

The event concludes with the final panel at 4:00 PM with a short panel that covers takeaways from the event as well as allows for networking. With this panel, we hope to give event attendees the chance to meet and greet the KoreConX ecosystem of partners, members, and service providers that work with Reg A+ daily. This will include Oscar Jofre, Scot Pantel, Joel Steinmetz, Matthew McNamara, Douglas Ruark, and Stephen Brock.

 

Join us for MedTech A+ Team: How to do a successful Reg A+ for a MedTech company on Thursday, June 23rd, 2022. This event is online and free to attend, which you can register for here. This event is perfect for all MedTech companies that are new or unfamiliar with Reg A+ and those that have completed Reg A+ raises in the past.

There’s a Lot of Private Capital to Go Around

Posted on by Oscar Jofre Tags: , , , , ,

With all the turbulence in the public markets, private markets look even more attractive to investors.  The private markets are 4x the size of public markets. Investors are and will continue to look for investment opportunities and right now, there is a lot of private capital to go around when we see these numbers.

 

A Staggering Amount of Private Capital

 

The private capital available in the world today is staggering. A recent report by Bain & Company found that there is more than $5 trillion of uninvested funds currently available from private equity firms, and this number is only expected to grow in the coming years. With this influx of cash, private equity firms can engage in mega-deals and drive up valuations in the process.

 

The increased availability of private capital is not just limited to traditional private equity firms. Family offices, sovereign wealth funds, and pension funds play a more prominent role in the private equity space and have experienced sweeping changes in 2021. With all this capital available, it’s no wonder that the private market is growing. While some people may be concerned about a potential bubble, it’s important to remember that the private equity industry is still relatively small compared to other asset classes. So even though there may be some risk of over-inflated valuations, the private equity industry still has much room to grow

 

Accessing Private Capital

 

We are witnessing record-breaking investment levels reaching billions of dollars. Several reasons for this influx of cash include:

 

  • Low-interest rates
  • An improving global economy
  • A renewed focus on private equity and venture capital

 

The wealth of private capital available today is staggering and growing. The options for accessing this capital are many and diverse, so there’s no one-size-fits-all solution for each private company looking to raise capital. However, some general guidelines will help you find the right resources for your business. You must understand what stage your company is in. This will help you identify the right kind of capital, as well as the right source of that capital. There are generally four stages of funding for a business:

 

  • Pre-seed Stage: This is when you have an idea but no product or service to sell. You will need to raise funds to develop your concept and bring it to market.
  • Seed Stage: This is when you have a product or service but no sales. You will need funds to finance your product development, marketing, and initial sales efforts.
  • Early Stage: This is when you have initial sales but are not yet profitable. You will need funds to finance your growth and expand your business.
  • Late Stage: This is when you are profitable and looking to scale your business. You will need funds to finance your expansion plans.

 

There are many private capital sources, including family and friends, angel investors, venture capitalists, accredited investors, nonaccredited investors, and private equity firms. Each has its strengths and weaknesses, so it’s essential to understand the differences before approaching them for funding.

 

Additionally, we are even beginning to see a growing player in this market: JOBS Act exceptions. These exemptions, Regulation A+, Regulation CF, and Regulation D, are game-changer for companies and investors alike. These exemptions allow companies to raise significant capital from accredited and nonaccredited investors alike, which continues to widen the pool of potential investors. 

 

The private capital market is booming, with record-breaking investment levels reaching billions of dollars. There are several reasons for this influx of cash, including an improving global economy, low-interest rates, and a renewed focus on private equity and venture capital. Not to mention, the JOBS Act has introduced new sources of capital outside of the traditional VC and private equity round. The everyday investor is showing significant interest in the ability to get in on the ground floor with a promising company to grow their wealth. With so much private capital available, it is time to take advantage of it.

 

Private Equity’s Primetime Has Arrived

Posted on by Oscar Jofre Tags: , , ,

Private equity’s primetime has arrived! This stems from a number of reasons, including favorable economic conditions for the private capital market. In fact, 42% of private equity limited partners report a 16% net return in this space. Here are three factors in particular that have caused private equity to outperform public equity in 2022.

 

1) Interest Rates:

A survey found that 71% of global private equity investors have indicated that their equity investments have outperformed their public equity portfolios since the global financial crisis. This is in part because private equity firms are less reliant on debt financing than public companies. Higher borrowing costs will hit public companies harder, putting them at a competitive disadvantage over private companies with rising interest rates.

 

2) Economic Uncertainty:

Some degree of uncertainty characterizes current economic environment. This can be attributed to the ongoing trade conflicts between the United States and China, Brexit, and the coronavirus pandemic. These factors have made it difficult for public companies to make long-term plans and invest for the future. Private equity firms, on the other hand, are better suited to deal with economic uncertainty. This is because they can take a longer-term view and are not as reliant on short-term results.

 

3) Regulation:

The increased regulation of public companies has made it more difficult and expensive for them to operate. Private companies are not subject to the same level of regulation, giving them a competitive advantage. Additionally, private companies can benefit from registration exemptions, like RegA+ and RegCF, which allow them to raise capital from everyday investors without the need to go public. This provides private companies a significant tool they can use to their advantage and fuel their growth.

 

These combined factors show that private equity has arrived and is here to stay. This will likely continue in the future, making private equity an attractive investment for investors. More individuals are involved in the private markets with the rise in forms of private investment for regulated and non-regulated investors, such as the JOBS Act regulations. This means more capital is flowing into private markets, which drives up valuations. With the current market conditions, investors would be wise to allocate a portion of their portfolio to private equity to protect and grow their wealth and prepare their portfolios for the future.

How Can a Foreign Company use RegA+

Posted on by Oscar Jofre Tags: , , , , ,

For many issuers outside of the United States, the ability to raise capital from a wide pool of investors, including “the crowd” is immensely compelling. However, for foreign issuers to be able to use RegA+, there are some important considerations to keep in mind.

 

First and foremost is whether the company would be eligible to offer securities to U.S. investors. Foreign companies should seek the advice of qualified legal counsel to ensure compliance with all applicable U.S. laws and regulations. Additionally, foreign companies should consider the costs associated with making a public offering under RegA+ and the ongoing reporting requirements imposed on the company if it elects to use this securities exemption.

 

Benefit from RegA+ as a Foreign Company

 

The benefits of using Reg A+ for foreign companies are tremendous. Perhaps most importantly, RegA+, as a securities exemption, allows companies to raise $75 million from non-accredited investors. The exemption also enables issuers to “test the waters” concerning interest in their securities before officially launching the offering

 

Using RegA+ as a Foreign Company

 

It is vital first to understand the process and what is required when looking to do a RegA+ raise. Foreign companies should be aware of the following when using RegA+:

 

  • The company must be registered as a US company with a principal place of business in the US.
  • The company must have two years of audited financial statements.

 

While RegA+ offers a foreign company a simplified path to raising capital in the United States, several requirements still need to be met for the offering to be successful. These requirements include:

 

  • Filing a Form 1-A with the SEC.
  • Passing an SEC review process.
  • Engaging a US-based registered broker-dealer.
  • Disclosing all material information about the company and the offering.

 

However, like any method of raising capital, RegA+ may not be suitable for all foreign issuers. This makes it incredibly important to engage a knowledgeable team that can guide issuers through the process.

 

What Does ATS Mean in Trading

Posted on by Oscar Jofre Tags: , , , , , ,

Many investors are turning to the private capital market to make long-term investments in light of the current market conditions. This has increased alternate trading systems and secondary market trading for RegA+, RegCF, and RegD securities. An alternate trading system (ATS) is a non-exchange trading venue that matches buyers and sellers to trade securities. In the United States, an ATS must be registered with the Securities and Exchange Commission (SEC) and must comply with specific regulations.

 

Different Forms of ATSs

 

There are many benefits to using an ATS, such as increased liquidity, lower costs, and greater flexibility. For example, an ATS can provide more liquidity for a security by providing shareholders with a means to sell private company shares. In addition, an ATS may offer lower costs than an exchange, such as no membership fees or listing requirements. In addition, an can often be categorized as an electronic communication network, dark pool, crossing network, or call market.

 

  • Electronic Communication Network: An ECN allows buyers and sellers to exchange shares without a middleman. Trades can also happen outside of business hours, which means that hours are not tied to the traditional stock market.
  • Dark Pools: A dark pool is a type of ATS that does not publicly display the prices or orders of its participants. Dark pools are typically used by institutional investors, such as hedge funds, to trade large blocks of shares without moving the market.
  • Crossing Network: A crossing network is very similar to a dark pool, meaning that the details of a trade are not made publicly available 
  • Call Markets: In a call market, trades are only executed once a certain number of orders has been reached, often at a set interval of time. 

 

Secondary market trading of RegA+, RegCF, and RegD securities can take place on an ATS, which is typically a registered broker-dealer platform. These platforms allow investors to buy and sell these securities even if the buyer did not invest in the initial offering. The secondary market for RegA+ securities is the most developed due to the long history of these securities. The main difference is that RegCF and RegD shareholders are required to own their securities for a longer period of time before they can be traded in a secondary market.

 

What is the Difference Between an ATS and Exchange?

Many people are familiar with the concept of an exchange; whenever you buy stocks in publicly traded companies, you go through a stock exchange like the New York Stock Exchange or NASDAQ. National securities exchanges are self-regulatory and their members, or listed companies, must meet the requirements established by the exchange. Exchanges are also SEC-registered

 

An ATS is much like an exchange in that it brings together buyers and sellers of securities. However, the main difference is that an ATS does not take on regulatory responsibilities. Therefore, an ATS can trade both listed and unlisted securities, like those purchased under a JOBS Act exemption. ATSs are also regulated by the SEC but must be operated by a FINRA-registered broker-dealer.

 

The Impact of Liquidity on Investing

 

Liquidity is an important concept to understand when trading securities and refers to the ability of a security to be bought or sold quickly and at a fair price. A security that is easy to buy and sell is said to be liquid. A security that is difficult to buy or sell is said to be illiquid. An investor might consider the liquidity of a security when making an investment decision. For example, an investor might choose to invest in a liquid security if they plan on selling it quickly. An investor might choose to invest in an illiquid security if they are willing to hold it for a more extended time. When trading securities on an ATS, it is crucial to consider the security’s liquidity. A security that is not liquid may be challenging to sell, and worth considering the liquidity of a security before investing in it.

A Distributed Workforce And How To Trust Your Employees

Posted on by Oscar Jofre Tags: , , , , ,

At the Virtual Communication Mastery event on May 26th, 2022, Oscar Jofre, KoreConX President, CEO, and co-founder, was invited to participate in a talk on the importance of building a team from a distributed workforce and how to trust your employees. He spoke about the company culture at KoreConX, which is based on trust and empowering employees to make decisions and how it benefits operations, and how we are seeing more companies embrace the remote model of working.

 

During the interview, the Virtual Communication Mastery hosts spoke to Jofre about how the crowdfunding concept in the US changed how fundraising works and who stakeholders are. “Venture capital is not the only way, there is nothing wrong with not being a venture, and because of COVID, online crowdfunding investment in the US has grown and has become more popular than ever,” said Jofre. He reiterated how there is lots of money sitting available, over $30 trillion, waiting to be invested, but it was difficult for people to support companies they believed in. Now with the JOBS Act regulations, KoreConX does everything compliantly to empower the private capital market so everyone can invest in innovative private companies.

 

This idea of inclusion does not only apply to its investors but also to the company’s employees. KoreConX is seeing companies embracing the distributed model “because it is about productivity.” You want your company to have the best product possible, and by getting the best people to believe in and execute that vision, it does not matter if they are in the same room as you. 

 

In fact, nearly 61% of Americans choose not to go into the workplace, a stark change from earlier in the pandemic.  “In 5-10 years,” says Jofre, “offices will not be the major hub for where people work.” He continued, saying that “with distributed working, we will see more small communities becoming hubs of people working remotely, and we are seeing more traveling because of remote working. Remote work is a very different environment where you do not lose things when you leave.” This allows a company and its employees to stay connected no matter where they are constantly. 

 

A significant concept Oscar believes in is providing to all employees is trust. He believes that “for a distributed team to work productively, there must be trust” between the employer and the employee. The employer trusts that the job will get done, and the employees trust that they can do their job without being micromanaged. By trusting your employees to make business decisions, you empower them to be as invested in the company as you are and improve productivity.

 

Join the all-in-one platform empowering private capital markets.

Free forever, Kore 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.

Sign up, it's free! Book a call