Invest in Startups | Equity Crowdfunding
While writing your body content, consider how to best tell your story. Think about what the reader would want to know, not necessarily what you think is important. Know who your target audience is and write with that person in mind. Using active verbs instead of passive language (e.g., “there is”) can also help create more engaging content for your reader.
After you’ve written the body content of your announcement, you will need to add information about your company. The boilerplate is a concise paragraph featuring the “about” information or bio language for your company. This short section provides a description of your company, as well as links to your website and any social sites, if applicable. The boilerplate section should be placed at the end of your press release.
Conclude your press release with three pound symbols (###) on the line below the end of your content. This symbol indicates to the reader that there is no further content in the release.
Compliance
In addition to writing an accurate and engaging press release, you also need to consider regulatory rules concerning securities offering communications. When conducting a regulation crowdfunding raise, you must follow U.S. Securities and Exchange Commission (SEC) rules regarding “terms” and “non-terms” content for marketing materials. The two types are described below:
- Terms communication – details about the offering, including the amount of securities offered, the type of securities offered, the closing date of the offering, the price of the securities, etc.
- Non-terms communication – more general information about your company and its product, including a statement that you’re conducting an offering, the intermediary conducting the raise, a link to the offering page, and facts about the business
Terms and non-terms content cannot be mixed. For a press release, you likely want to use non-terms content, or you will be limited in how useful your release document is. If you include a quote from someone in your company, make sure it is a broad statement such as “We’re excited to be making this crowdfunding opportunity.” Check out our previous blog post on Marketing Your Regulation Crowdfunding Raise[1] for more information about how you can talk about your raise, and you can review the Regulation Crowdfunding advertising guidelines here[2].
