Crowdfunding Consulting Company Prepares for Full Implementation for Regulation A+ Capital Raising for Private Companies
May 25, 2015 (PRLEAP.COM) Business NewsMay 25, 2015 - Expert crowdfunding consulting company, Crowdfundraiser, announces the release of process and pricing info prior to the full implementation of regA + later next month. The company is already seeing demand for the service, working with several private companies looking to perform the mini-IPO through Form 1A registration with the SEC later in 2015. "We want to be more transparent on our pricing and process so there's no question for current and future clients intent on using our service," says Jake Durrant, Managing Director. "We've teamed up with some of the most experienced securities attorneys and accountants to provide and end-to-end crowdfunding solution for our clients," he says.
Regulation A+ represents a game-changer for lower mid-market private businesses looking to easier access to capital through democratization. The new expansion of the traditional RegA + offering takes the offering limit from $5 million in a 12 month period up to $50 million. "There are caveats," Durrant says, "but the opportunities are huge for the right companies looking for liquidity for growth and acquisitions." Crowdfundraiser is working to help companies navigate the process of raising both debt and equity from both accredited and non-accredited investors while still maintaining the state-by-state blue sky laws.
While the company is seeing large demand for its services, they're being a bit more skeptical about the ability of some companies for raising the money they would like through their Regulation A+ offering. "Raising capital with crowdfunding is likely going to be more work than many of the industry promoters have revealed," Durrant says. "Raising up to $50 million from anyone but accredited investors means the raise must come in small increments, likely from thousands of people," he says.
The company expects many clients will have a difficult time promoting their service. Social media and virality can help, but the most successful RegA + crowdfunding capital raising will happen through companies that have an existing network where shares can be sold. A couple of examples of current Crowdfundraiser clients will likely be helpful. A niche social network with over 1.5 million active users and an email list of 600,000 will have a much easier time promoting a stock or bond offering than a smaller companies looking to raise startup capital with little to no connections.
In fact, Crowdfundraiser has actually been curating a number of potential clients who are likely not good candidates for its services. "We don't want to steer away legitimate opportunities, but we also don't wish to be disingenuous to clients and potential clients. Launching a successful Regulation A+ crowdfunding campaign is going to be best accomplished with a large network of potential shareholders, unless a couple of large institutional investors wish to syndicate a deal they like," Durrant says.
In an effort to curb this issue, the company is collecting data from both non-accredited and accredited crowdfund investors. The company's list of investors interested in everything from startups to real estate is certainly growing, but having a viable candidate without relying on a separate database will be key to the mini-IPO success with Regulation A+.
Crowdfundraiser is part of the Deal Capital Partner network. The company provides growth capital to new and long-standing business owners and their shareholders, assisting them from the growth stage to strategic corporate exit through M&A or public offerings. The company is based in Bellevue, Washington.