Unlocking New Client Opportunities: Andes Capital’s Approach to Online Capital-Raising

Andes Capital approach to get clients in online capital raising

Online Capital Raising has opened doors for more people to invest, but the industry is constantly evolving, meaning broker-dealers must be adaptable. It’s a balancing act: staying compliant while discovering new growth opportunities.

Firms like Andes Capital show it can be done. They’re not just keeping up—they’re excelling.

We recently had the chance to sit down with Curtis Spears, a senior leader at Andes Capital, to learn more about how the firm has successfully navigated this space, expanding its client base and simplifying the investment process along the way.

The Shift from Institutional to Retail Investors

Traditionally, Andes Capital worked with large institutional clients, primarily through secondary market deals. However, recognizing the transformative impact of the JOBS Act and the growing popularity of online capital raising, they made a strategic pivot.

 

Five years ago, the firm expanded into private placements, adding JOBS Act regulations for online capital raising options under Regulation Crowdfunding (RegCF) and Regulation A (RegA+) to their offerings. Looking to democratize investment access, Curtis mentioned that they  “decided to dig deeper into the private market space and launched a crowdfunding business line through RegCF and RegA+.” 

 

To successfully make this transition, Andes Capital needed to adapt its approach to compliance, marketing, and investor relations. That’s when Kore entered the picture, helping streamline these processes and ensuring operational efficiency.

 We’ll tell you more about this soon.

 

Tailoring Online Capital Raising Campaigns to Different Investor Segments

A key element of Andes Capital’s strategy has been customizing its online capital raising campaigns to meet the needs of various investor types. While the firm initially catered to institutional investors, its expanded reach now includes high-net-worth individuals, family offices, and even everyday retail investors. This diversification was crucial in ensuring the success of their new initiatives. 

To highlight this approach, Curtis noted, “We’ve always been focused on giving people access to the markets who normally wouldn’t have it, whether as issuers or investors. Online Capital Raising fits perfectly into that mission, allowing us to extend opportunities to a broader audience, including smaller PE and VC deals and retail investors.”

When it comes to broker-dealer firms, the ability to tailor JOBS Act regulations offerings to specific investor segments is vital. High-net-worth individuals, for instance, may be interested in exclusive investment opportunities with detailed risk assessments, while retail investors might need more educational resources and lower entry points. 

Andes Capital’s success highlights the importance of understanding the unique needs of each investor type and crafting campaigns that resonate with those needs.

Technology and Innovation in Online Capital Raising

To effectively scale its online capital raising operations, Andes Capital turned to Kore’s all-in-one platform. By leveraging Kore’s infrastructure back-office technology, the firm has streamlined deal management, enhanced investor relations, and ensured compliance across all online capital raising initiatives.

Kore’s platform, built on KoreChain, provides an infrastructure of trust. With smart contracts and compliance tools baked into the system, Andes Capital can confidently offer transparent and secure investment opportunities to its growing client base. This partnership has given the firm a competitive edge in the private capital markets.

 

Overcoming Challenges in Online Capital Raising

The online capital raising space presents plenty of opportunities, but it also comes with its challenges. Regulatory complexity, fierce competition, and the need to educate new investors are just a few. Andes Capital met these challenges by focusing on building trust and delivering value to its investors.

“The VC space can be very clubby and selective,” Curtis said. “We’ve always been about finding ways to raise money for deals that might not have had a chance otherwise, and online capital raising was a natural extension of that. It wasn’t easy, but by focusing on transparency and keeping investors informed, we were able to build a loyal base.”

For broker-dealers considering entering this space, the takeaway is clear: building credibility and trust is key to long-term success.It’s not only about offering a compelling investment opportunity but also the assurance that investors’ interests are being safeguarded through clear communication and education.

Looking Ahead: Future Trends and Opportunities in Online Capital Raising

As the online capital raising space continues to grow, broker-dealers will find even more opportunities to expand their client base. With new technologies and regulatory developments on the horizon, firms like Andes Capital are positioning themselves to capitalize on these trends.

 

Curtis emphasized, “Younger folks nowadays are looking for private market investments more than ever. We need to keep educating them and provide more liquidity options. That’s where the future is—making private markets accessible and liquid for everyone.”

As we perceive everyday, the only constant is change. The key to thriving in this evolving market is flexibility and foresight. Broker-dealers that stay ahead of regulatory changes, leverage technology like Kore’s platform, and anticipate the needs of modern investors will be best positioned for growth.

Growing Your Client Base with Trust and Technology

The JOBS Act opened up new opportunities for broker-dealers through online capital raising, and firms like Andes Capital are leading the way. By adapting to changes, leveraging technology, and maintaining a focus on transparency, broker-dealers can not only expand their client base but also shape the future of private market investing.

At Kore, we’re proud to equip forward-thinking firms with the tools they need to succeed in today’s dynamic market. We provide broker-dealers with a robust suite of solutions that streamline compliance, cut costs, and improve efficiency—allowing them to focus on growth and higher likelihood to raise capital for their clients.

Kore’s All-in-One platform supports RegCF, RegD (506b, 506c, 504), RegS, and RegA+, simplifying capital raising and secondary market trading. The Compliance Desk automates compliance, including KYC and AML. Tailored solutions like the Private Label Platform allows us to customize services.

Ready to explore how Kore can help your firm thrive in online capital raising? Book a call with our team today.

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