The SEC’s Risk Fin Division has issued a 9-page report entitled “Capital Raising in the U.S. the Significance of Unregistered Offerings Using the Regulation D Exemption” using the numbers from Form D filings since early ’09. Their goal was to understand the amount of capital raised. Continue reading “SEC REPORT FINDS MOST COMPANIES USE A REG D 506 OFFERING”
WealthForge, a firm that is transforming the outdated way private capital is raised, has been named one of three (3) winners of the UBS Future of Finance Challenge. They were selected from more than 600 submissions across 52 countries. Continue reading “TRANSFORMING THE WAY CAPITAL IS RAISED”
Companies seeking to raise funds through private placements from angels or venture capitalist just obtained a new tool in their arsenal. AngelSoft, a New York company that makes software to assist investors track their portfolios has created a new online marketplace, Gust, designed to facilitate introductions between potential investors and start-up companies. Continue reading “ONLINE SERVICE MATCHES INVESTORS TO ENTREPRENEURS”
Capital invested in seed stage companies rose by 23% in the third quarter of this year. Seed stage companies raised $214 million and accounted for 54% of the total deal volume. Companies receiving capital for the first time from venture capitalists also saw a 7% increase to $2.5 billion in the third quarter. Continue reading “GOOD NEWS FOR START-UPS”
The SEC has reminded issuers that until it adopts final rules as directed by Title II of the JOBS Act, any offer or sale of securities trying to rely on the crowdfunding exemption will be unlawful under the federal securities laws.
The SEC finally voted to approve Rule 506(c) which effectively allows companies, hedge funds and other asset managers to advertise private securities offerings to accredited investors. This lifts a 80 year ban on general solicitation, due to the changes mandated by Congress in Title II of the JOBS Act, which passed in April 2012. Continue reading “SEC APPROVES RULE 506(c)”
WHAT’S BETTER FOR YOUR COMPANY — CROWDFUNDING OR GENERAL ADVERTISING?
Don had a great idea for an International Jazz & Blues website. He has a popular blog with lots of followers and a number of advertisers. Don had done his homework; he has a business plan, financial projections, and estimated use of proceeds for the $600,000 he wants to raise. Continue reading “THE TALE OF TWO COMPANIES”
Finally the senate has passed a version of the House’s small business investment bill which combines six different bills into one. It’s good news for companies, especially start-ups, as it will allow companies to utilizing a Regulation D, Rule 506 offering to accredited investors, to advertise. This is a real deal changer for companies. Since it does not mirror the House’s version, either the House will have to re-vote on it or the House and Senate will have to negotiate a compromise.
Today, President Obama signed into law the Jumpstart Our Business Startups Act (“JOBS”), a collection of laws which eases regulations for small businesses and start-ups raising capital and provided more flexibility in how and when companies go public. Continue reading “GOOD NEWS FOR SMALL BUSINESSES & START-UPS FINALLY YOU CAN ADVERTISE FOR CAPITAL”