the new rules for raising capital why the rules are so much better for technology companies than the...
TRANSCRIPT
The New Rules For Raising CapitalThe New Rules For Raising Capital
Why The Rules Are So Much Better For Why The Rules Are So Much Better For Technology Companies Than The Old Technology Companies Than The Old
Venture Capital MethodVenture Capital Method
The Private Capital Market, Inc.
Thomas E. Vass
The New Rules Allow You To Issue The New Rules Allow You To Issue Securities Directly to InvestorsSecurities 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.
Reg D Rule 506c 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 Crowdfunding, by Scott Purcell
www.fundamerica.com/book
The Old Venture Capital Model The Old Venture Capital Model Vs. The New 506c ModelVs. The New 506c Model
There are 3 business models for a Reg There are 3 business models for a Reg D Rule 506c Offering:D Rule 506c Offering:
Non-FINRA Broker Dealer Website
FINRA Broker Dealer WebsiteThe Investment Advisor Model
FOR MORE INFO...
Accredited Investor Crowdfunding Website Comparison
http://bit.ly/1Rjd0Mx
Your Next Raise: Getting Ready For Your Next Raise: Getting Ready For Future Private Market Stock ExchangesFuture Private Market Stock ExchangesThe 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.
Schedule For Conducting A Private Schedule For Conducting A Private Placement Under 506cPlacement Under 506c
Pre-offering Offering Post-offeringPhase 1Phase 1
Phase 2Phase 2
Phase 3Phase 3
3 Months 6 Months 2 Months
Your Costs To Conduct an OfferingYour 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
Are You Ready to Raise Capital?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.
The Private Capital Market, Inc.The Private Capital Market, Inc.
Thomas E. VassTvass @ privatecapitalmarket.com919 975 4856
ADV Disclosure Documenthttp://bit.ly/1jxdctE