Raising capital from investors properly and effectively requires the development of a securities offering executed in compliance with State and Federal rules. Most small and medium sized companies choose the Securities and Exchange’s (“SEC”) Regulation D exemption program to execute such offerings. With the advent of the JOBS Act 506 (c) Program, companies can now execute a “public offering” of their investment opportunity and securities offering while still retaining the low execution cost along with the ability to continue operating as a private company.
There are two (2) main advantages that the Regulation D offering provides to companies which are as follows:
(a) Provides the ability to solicit investors and sell them equity or debt securities in compliance
with applicable regulations and;
(b) Provides the fundamentals necessary to provide a concise investment structure, SEC
disclosure and the capability to execute the subscription of investment funds into your
Any company or entrepreneur that is seeking to raise equity or debt capital from investors properly and legally should use a Regulation D offering. Even if you plan on only having one or two investors in your transaction you need to provide the funding framework, the related disclosure documentation and investment agreements needed for raising capital. A Regulation D Offering provides all of these documents for raising debt or equity capital from investors. Trying to raise capital of any amount without these fundamentals in place is almost impossible.
Most companies use the Regulation D Exemption program to raise from $1,000,000 to up to $50,000,000 in capital. Regulation D Offerings have been used for a wide variety of transaction and industry types (such as corporate seed capital, corporate expansion capital, film production capital, real estate funding for acquisitions, development projects, golf courses, rehabs, etc.), capitalization for early to pre-IPO stage Internet and technology companies, expansion funding for retail companies and product development and distribution funding.
Ready to engage with us to raise capital? Reach out through the Contact Us section of this website and let’s begin today.