Marketing Companies and General Solicitation

Private companies and investment firms are permitted to advertise the fact that they are looking for investors. This requires a very special sort of advertising and marketing. There are a few important considerations that marketing companies should pay attention to if this is something that their clients would like to look into.

Caution

When marketing companies start a campaign for an investment opportunity, it is important that there is no chance of being accused of misrepresentation. Investors may well base their investment decision on what is depicted in promotional videos so it is imperative that any marketing material used is accurate. For example, a video shot in an office which houses employees from companies other than the client may be construed to have misrepresented the working environment and number of employees.

Success Fees

Marketing companies do not want to be seen as unlicensed brokers or dealers. As such, it is unwise to accept a commission type of payment programme as this is the type of deal a broker would work through. A flat fee is a far better arrangement for both client and marketing company. The client does not need to be concerned about having the fee increase if the campaign is successful and the marketing company does not need to be concerned about being accused of being an unlicensed broker.

The Law

There are plenty of laws in place regarding how investors are to be dealt with and what accreditations these investors must have before they are permitted to invest in companies. As such, marketing companies should advise their clients to retain the services of a lawyer who specialises in company law to ensure that no laws are broken in the process of signing on investors.

A marketing campaign aimed at getting investors for a client is a minefield to navigate. It is vital that all possible care is taken to ensure that no laws are broken and no information that could be construed as misleading is used. It is up to the marketing companies to ensure that the campaign abides by the law and to advise their client on good strategies for acquiring investors.