Thanks to the JOBS Act, many crowdfunding options are available for businesses of all sizes who seek to raise capital. But with vehicles such as Regulation A, Reg.CF, Private Placements, 506(c), Reg.A+ and so many others at the disposal of potential issuers, what’s the best course of action? Why chose one over another? Raising capital isn’t as easy as it sounds. In this podcast, Mike Brette, the CEO of Small Cap Equity Advisors, talks about some common misconceptions about the industry, and what you need to do (and not do) to be on the legal side of it – because if you’re not, well, let’s just say you may be facing some serious issues.
Raising money via crowdfunding is serious business. And with serious business comes serious responsibilities … and there are serious consequences for not staying compliant with SEC regulations! We cannot stress enough the importance of aligning yourself with industry experts who can guide you along the process of raising capital correctly. As mentioned on the podcast, you’ll see that there are many misconceptions about equity crowdfunding that you really need to understand, both as an investor and as an issuer. It’s not just as simple as writing a business plan and creating a pitchdeck. For starters, you better be sure your accredited investor is really accredited! So many issuers are paying securities lawyers, auditors, registration fees, and more – only to discover they have run out of money and have neglected their marketing costs. (Big Mistake!) Those experienced in the industry will help you avoid these pitfalls and will explain the many misconceptions to give you better chances of crowdfunding success. The essential insights you’ll learn from Mr. Brette on this podcast are priceless!
Do your crowdfunding correctly! After listening to this podcast, it should be obvious that your first course of action should be to contact Mike by phone at 951-236-8473 or by email here. In the meantime, our advice: do not violate securities laws!
ABOUT OUR GUEST: Mike Brette
Michael N. Brette, J.D. advises clients on a wide variety of transactional business matters from startup consulting, Equity Crowdfunding, 506(c) private placement, REG A+ offerings, capital formation, going public, arranging capital for publicly traded companies.
Mr. Brette has published two books Asset Protection Planning and Raising Capital For Your Business ( Amazon ). He has appeared on more than 450 TV and radio shows discussing various business and financial topics. He has a Juris Doctor ( law degree ) for 42 years and is listed in Who’s Who in the World and Who’s Who in Industry & Finance.
All information provided is for informational purposes only. Mapable USA is not a registered broker-dealer, funding portal, or investment advisor. This information presented on this website/podcast is not intended as legal or investment advice for anyone to make an investment in any particular company and is not intended for any companies to rely on this information to form an opinion to go public or not to go public or to do any type of offering of securities. Any information presented is not an offer or solicitation to purchase or sell any securities or financial products. None of the information on the Mapable USA podcast or website takes into account any individual person’s personal objectives, financial situation, needs, or particular circumstances. You must check with a securities attorney to find out if an offering is for you, or if you are going to be in the business of selling any type of securities, you need to make sure you are following your state and federal legislative law so you do not get into any troubles. Do not use the opinions as stated on this show as any way to form an opinion as what is wrong or right or what could be done for your business or as an investor. Mapable, LLC recommends you obtain your own financial, legal, and taxation advice before making any financial investment decision.