SEC Issues Staff Report on Accredited Investor Definition

By | 01/17/2024 | 4:43 am ET

The Securities and Exchange Commission (SEC) has recently issued a staff report discussing the accredited investor definition. This report holds significant implications for investors, issuers, and the securities market as a whole. Let’s explore into the details of this important development. Understanding the Accredited Investor Definition The accredited investor definition is a crucial concept in the securities industry. It determines eligibility for participating in certain private securities offerings, which are typically deemed higher risk and less regulated than public offerings. The definition traditionally relied on wealth and income thresholds to assess an individual’s financial suitability for these investments. The SEC…

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What is Regulation A+ vs Regulation CF?

By | 02/09/2022 | 11:23 pm ET

Freddy and Fabrizio, co-founders of F&F Inc. want to raise capital to franchise their local retail chain, eventually on a national level. They’re discussing the benefits of following Regulation A+ vs Regulation CF. Here’s how they see each scenario affecting F&F.   Regulation A+ Regulation CF Definition Allows companies to raise up to $75 million through a public securities offering Allows companies to raise up to $5 million through online equity crowdfunding Access to Public Markets Optional access to public markets No access to public markets Investor Types Can raise money from both accredited and non-accredited investors Can raise money from…

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How to Create a Private Stock Offering in 10 Days

By | 10/06/2021 | 10:53 am ET

If you need to raise capital fast, a traditional stock offering or initial public offering isn’t the way to go. Instead, consider a private stock offering or private placement. A private stock offering enables you to generate capital in days rather than weeks or months. In this case, you reach out to preferred private investors with an exclusive stock or bond offering. Let’s take a look at how the process works. Procedure of Offering a Private Stock Offering Here’s the good news. A private stock offering has few regulatory requirements, as outlined under Regulation D. Although it involves the sale of…

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How to Create a Successful Marketing Campaign for your Crowdfunding Offering

By | 12/15/2020 | 9:09 am ET

Your million-dollar idea should appeal to your potential investors in its first impression. The solution is a well-planned marketing campaign mixed with a product and business plan that make sense. Any crowdfunding campaign has three main phases: Pre-launch, Launch, and Post-launch; and marketing is an essential component of each phase.  Here are some of our best marketing tips through each phase: PRE-LAUNCH The Foundation of successful marketing lies in its preparation and should start at least three to five months before the launch: Research-Research-Research This cannot be stressed enough! The product and idea are ready, but the marketing for crowdfunding…

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The Best Options for Raising Capital for Small Public Companies

By | 11/06/2020 | 11:31 am ET

There are two primary methods for any company raising money, through debt and equity offerings. Yes, nature and description may change, but the formula remains the same. Debt and Equity Financing In finance, “Debt Financing” and “Equity Financing,” are categorized under “Security Offerings” with certain exceptions. Expert views vary when it comes to the best options for a public company financing, and if you were to ask us, we would say that there is no fixed solution to this. While debts work great for some companies, equity is more suitable for others. To help make a sound decision, we have…

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SEC Adopts Expedited Review Procedure for Exemptive Applications under the Investment Company Act

By | 08/31/2020 | 1:42 pm ET

On July 6, 2020, the SEC adopted amendments to rule 0-5 under the Investment Company Act of 1940 (“Act”) to make the process more efficient, transparent, and cost-effective. The amendments include: An expedited review procedure for routine applications An internal timeframe for review of other applications Establishing new rule 17 CFR 202.13: The internal time frame (for SEC staff) for applications excluding the ones submitted under expedited review is 90 days for initial filing and each of the first three amendments. For subsequent amendments, it is 60 days. Overview: The Commission adopted the changes based on the requests for exemption…

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8 Reasons Companies Should Not Use a Third-Party Platform for their Reg A+ Offerings

By | 05/26/2020 | 2:17 pm ET

The SEC adopted amendments to Regulation A (now known as Regulation A+) on March 25, 2015, under the “Jumpstart Our Business Startups” Act (JOBS act). Reg A+ allows small businesses to raise capital from investors through its exemption from registration provisions. Reg A+ is divided into two tiers: Tier 1 allows securities offerings of up to $20 million in 12 months and Tier 2 up to $50 million in 12 months.  We would like to analyze the difference between hosting a Reg A+ offering on a third-party crowdfunding platform vs the company’s website. Reg A+ Offering:  Third-party Platform vs. Company…

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Top 9 Tips to Conduct a Successful IPO

By | 05/26/2020 | 2:01 pm ET

In our research, we came across an article that had a graphical illustration of declining IPOs from 1999 to 2018, and astonishingly it is almost 60%. Nearly all private companies aim to go public because of the associated advantages eventually, but only a select few have been able to do so. 2019 was comparatively a successful year with Unicorns making their debut, continuing in 2020. Unfortunately, the current pandemic in the form of the novel coronavirus Covid-19 continues to keep us gasping for breath, but we are optimistic about future IPOs after the epidemic ends. So here are the top…

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How to do a Reg A+ IPO on NASDAQ and NYSE

By | 10/03/2019 | 5:59 pm ET

When listing on NASDAQ or NYSE, companies have the option to perform a Reg A+ IPO IPO as an alternative to the traditional underwriter method. There are two tiers of Reg A+. The first allows companies to offer a maximum of $20 million annually, and requires an SEC filed offering circular. The second allows companies to offer a maximum of $50 million annually, also requires the provision of an SEC filed offering circular, but allows companies to preempt blue sky laws. Most Reg A+ offerings are Tier 2. Both tiers require some EDGAR filing. A Tier 2 offering, unlike a Tier…

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Traditional Crowdfunding VS Equity Crowdfunding

By | 03/05/2019 | 9:24 am ET

If your company has always thought about crowdfunding as only a means to fund charitable causes, then it’s about time you changed that perception. Since the coming of Indiegogo in 2008 and Kickstarter the following year, business owners have become exposed to how effective crowdfunding can be as an option to raise funds. After all, who ignores an industry like crowdfunding estimated to grow to nearly $10.9 billion in total funding in 2015 from $1.5 billion in 2011. Equity crowdfunding is the latest model making waves in the crowdfunding industry since the passing and implementation of the Title II of…

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