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Published bySheila Cannon Modified over 9 years ago
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The New Rules For Raising Capital Why The Rules Are So Much Better For Technology Companies Than The Old Venture Capital Method The Private Capital Market, Inc. Thomas E. Vass
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The New Rules Allow You To Issue Securities Directly to Investors Raise an unlimited amount of capital. Have an unlimited number of accredited investors. Issue any type of security you want. Set your own terms and conditions. Control your company’s future.
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Reg D Rule 506c Rule 506(c) offerings allow the company to market and promote the offering on the internet. The securities can only be sold to accredited investors The investors must be verified as “accredited” before the company accepts their capital. FOR MORE INFO... The Definitive Guide to Equity & Debt CrowdfundingThe Definitive Guide to Equity & Debt Crowdfunding, by Scott Purcell www.fundamerica.com/book
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The Old Venture Capital Model Vs. The New 506c Model
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There are 3 business models for a Reg D Rule 506c Offering: Non-FINRA Broker Dealer Website FINRA Broker Dealer Website The Investment Advisor Model FOR MORE INFO... Accredited Investor Crowdfunding Website Comparison http://bit.ly/1Rjd0Mx
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Your Next Raise: Getting Ready For Future Private Market Stock Exchanges The SEC is considering how to establish private security exchanges to allow investors to trade private stock and bonds, like they do in public markets. 1.The new private exchanges will be called Alternative Trading Systems (ATS) approved by the SEC. 2.Your securities will need a national identification code called a CUSIP to trade in an ATS. 3.Your corporate securities account at Folio is set up to take advantage of the new ATS and the transition to the public markets, if you choose to do an IPO.
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Schedule For Conducting A Private Placement Under 506c Pre-offering Offering Post-offering Phase 1 Phase 2 Phase 3 3 Months 6 Months 2 Months
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Your Costs To Conduct an Offering For the Rule 506c, your legal costs to have the attorney create the offering documents will likely be between $15,000 to $20,000. For Reg A, your legal costs will likely be around $75,000. Your marketing and promotional costs will likely be $20,000 for Rule 506c. Your fee for the investment advisor will be 3%, at closing. The Costs to Raise Crowdfunding Capital http://bit.ly/1jxbLeF
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Are You Ready to Raise Capital? The new rules are better than the old rules because you set your own terms and conditions that best fit where you are taking your company. The Private Capital Market can help you issue your securities at every step of the way. Let’s get started by creating your company Investor Relations page.
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The Private Capital Market, Inc. Thomas E. Vass Tvass @ privatecapitalmarket.com 919 975 4856 ADV Disclosure Document http://bit.ly/1jxdctE
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