Raise Up To 75 Million Under Reg A
The capital raising landscape has now seen its biggest shift in decades thanks to the expansion of Reg A which allows companies to raise up to $75 million per year from the general public in a more streamlined process than what is required for public companies.
Reg A Done Right
There are advantages for private, growth-stage companies who file a Regulation A+ offering as opposed to a traditional Initial Public Offering. The first is that the investor pool is vastly greater, and even though those investors may not have the same type of cash set aside for investing, there are so many more that the financial potential is greater.
What is Title IV (Reg A) Crowdfunding?
Title IV of the JOBS Act that pre-empts state law, paving the way for $50M unaccredited investor equity crowdfunding. Growth companies will soon now be able to raise up to $50 million from unaccredited investors in a mini-IPO style offering serving as a potential alternative to venture capital or other institutional capital.
Imagine Uber or AirBnb, instead of going to big institutions for capital, now offering their stock directly to their drivers, riders, renters and tenants as well as the general public.
Benefits Of Reg A
Faster Capital
Startups don’t need to spend as much time trying to win over large investors and can focus instead on getting the company ready for the next level. Since Regulation A+ options are still being realized by the people who are now able to tap this investment potential, there is enthusiasm and momentum that is certainly to the advantage of the startups and growth-stage companies.
Brand Enthusiasts
Word-of-mouth marketing is still considered the most powerful of all promotion, whether it happens in-person or through online means like social media. Main street investors are committing hard-earned money and have more of an incentive to see a return on it. They are more likely to evangelize the brands they have invested in which means a much wider marketing reach.
Remain Control
Instead of large amounts of capital being raised from a few sources, Reg A+ funding collects smaller amounts from a bigger pool of investors. This means that no single investor will own enough shares to have a controlling stake in what the company does.
Brand Testers
Get brand testers from around the globe...investors will want to tell other people about the brand, they will also likely want to test out the products or services themselves. This can lead to feedback that improves what the company offers to the public.
How It Works
#1 - Preparing The Reg A
Once a company decides to pursue a Mini-IPO, Raise Ninja will work with them to get regulatory qualification. This process involves drafting offering documents and receiving the go-ahead from the SEC.
After a company has decided to pursue a mini-IPO, they will need to draft a Form 1-A with the help of Raise Ninja and obtain reviewed or audited financials. After filing the Form 1-A, Raise Ninja will work with the company to respond to any comments from the regulators and then file the final offering circular after receiving the final go-ahead from the SEC.
#2 - Launch Your Raise
Once regulatory qualification has been received, the company may launch its mini-IPO.
Our online platform has been engineered to seamlessly accept investments online, including verifying investor identities, performing anti-money-laundering checks on investors, facilitating investment document execution, funds transfer and regulatory compliance.
3 - Closing The Round
Raise Ninja will manage the entire closing process and ensure that all legal and regulatory obligations are met. The funds from the investors will be transferred to the company upon completion of the offering. Additionally, the platform provides messaging and managing tools for the company and investors to collaborate online before and after closing the round.
Call 202-717-3797
Email:info@raiseninja.com
Site: www.raiseninja.com
Legal Disclaimer
The offering will be made only by means of an offering circular. An offering statement regarding this offering has been filed with the SEC. The SEC has qualified that offering statement which only means that My Company, Inc. may make sales of the securities described by that offering statement. It does not mean that the SEC has approved, passed upon the merits or passed upon the accuracy or completeness of the information in the offering statement. The securities offered by My Company, Inc. are highly speculative. Investing in shares of common stock of My Company, Inc. involves significant risks. The investment is suitable only for persons who can afford to lose their entire investment. Furthermore, investors must understand that such investment could be illiquid for an indefinite period of time. No public market currently exists for the securities, and if a public market develops following the offering, it may not continue. You may obtain a copy of the Form 1-A offering circular that is part of said offering statement here. You should read the offering circular before making any investment.
Forward-Looking Statements
The offering materials and this letter may contain forward-looking statements and information relating to, among other things, My Company, Inc., its business plan, objectives and strategy, and its industry. These forward-looking statements are based on the beliefs of, assumptions made by, and information currently available to the company's management. When used in the offering materials, the words "estimate," "project," "believe," "anticipate," "intend," "expect" and similar expressions are intended to identify forward-looking statements, which constitute forward-looking statements. These statements reflect management's current views with respect to future events and are subject to risks and uncertainties that could cause My Company, Inc.s actual results to differ materially from those contained in the forward-looking statements. Investors and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. My Company, Inc. does not undertake any obligation to revise or update these forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events.
