Trust Stamp Hits Reg CF Maximum $5M in Oversubscribed Offering

“DealMaker gave us the right tools to own our entire brand and execute our self-hosted raise in-house.”

Nisha Naik
Executive Vice President, Trust Stamp

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Around the world, the protection and privacy-first verification of identity and other sensitive data is a critical component in the infrastructures of many industries, ranging from financial services and regulatory compliance to humanitarian work and healthcare. With a variety of privacy-first tools spanning data protection, secure identity proofing, user-focused biometric solutions and more, Trust Stamp delivers innovative and unmatched identity and trust technology to enhance data privacy and security while also expanding access to financial and societal inclusion.

When it came time to raise capital again in 2021, Trust Stamp turned to a familiar source - the crowd. Having worked closely with the team at DealMaker Reach (formerly Ridge Growth Agency) during their successful Series A financing round in 2020, Trust Stamp knew they had the right team to help share their story with existing and potential investors; what they needed was an evolved technology stack to match. After working with traditional offering “marketplaces” in the past where they gained experience navigating equity crowdfunding offerings, Trust Stamp’s team knew their best path to a full $5M Reg CF financing at this stage in company growth was based on a whitelabelled, self-hosted raise.

“I explored other whitelabel fundraising solutions, but they required significant work on the issuer's end to get a platform up and running. DealMaker was easy to use and recommended by trusted colleagues,” explains Nisha. “It was important for us to get the insights we needed to make the best targeting decisions for our offering, both on a wider audience level and down to each individual investor. DealMaker provided just that.”

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Trust Stamp Raise Powered by DealMaker

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1. Closed and onboarded 1,000+ new investors
2. Oversubscribed $5M+ via RegCF
3. Raised $1M+ in just over a week, spurred by a successful content marketing placement 

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Trust Stamp’s team leveraged a variety of DealMaker tools and services to succeed as one of the first $5M Reg CF offerings since SEC regulations increased the offering maximum in March 2021. Notably, the expertise, proven tactics, and data-driven approach of DealMaker Reach allowed Trust Stamp to tap into new audiences and win new investor commitments while simultaneously remarketing to their existing investors from previous rounds.

“DealMaker (Reach) offered more than just the capital fundraising. We could really see what people were interested in based on our marketing, allowing us to target them effectively for our raise,” says Nisha. “The insight we got from DealMaker was also useful in adding another granular layer of understanding to how our audiences are responding to different messaging, which we hope to continue leveraging in marketing efforts beyond those focused on fundraising.”

Supporting Trust Stamp’s investor acquisition marketing posed an additional unique challenge as Trust Stamp’s stock was already trading on OTCQX during the offering. In October, an exclusive placement in popular newsletter Morning Brew combined with optimism in crypto markets may have played a part in driving the share price up 100%+, making the Reg CF offering especially attractive to investors. Over $200,000 was invested within 24 hours of the price jump, anchored by a tried and tested investment checkout flow and branded experience.

“You have greater and more meaningful control over marketing and how you engage with prospective investors with DealMaker” added Nisha.

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‍Making Decisions with Data

Beyond sophisticated in-market tactics, TrustStamp took their offering to the next level using DealMaker Compass to generate “investor ranking” propensity scores for in-progress investors, leveraging machine learning to predict which individuals were most likely to complete their investment. Propensity data allowed Trust Stamp to identify investors who represented a high likelihood of converting and remarket to/contact them within the subscription process.

 “We worked with the categories and propensity data provided through DealMaker Compass. We evaluated the number of days it had been since each person signed up to begin the investment process. We were able to use that data to personally contact anyone that created a profile over 30 days prior with a larger desired subscription amount to better gauge their interest in completion and address any barriers in doing so,” says Lance Wilson, Finance Manager at Trust Stamp.

With inclusion and expanding access to financial services at the core of their mission and values, Trust Stamp’s equity crowdfunding campaign had to be done right in order to deliver value to the business while simultaneously growing their community of advocates in an efficient, cost-effective manner. Using DealMaker’s team and technology, TrustStamp was able to do just that - setting a new standard for a successful Reg CF financing before uplisting to the Nasdaq (NASDAQ: IDAI) shortly thereafter.

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‍Interested in learning more about how our capital raising solution can help you grow your business? Get in touch.