Many seeking to raise capital for their business usually use the tried-and-true Regulation D exemption from the IRS. But did you know that going the Regulation A (Reg.A) route may provide you with more flexibility, both in the short and long term? In this podcast, Mike Brette from Small Cap Equity Advisors discusses some of the options, nuances, and advantages that Reg.A provides compared to a private placement under 506(c) Reg D. But you have to do it all correctly. And one thing’s for certain: you don’t want to raise any red flags with the SEC!
Many think raising money under Reg.D is cheaper, better, and faster than doing a Reg.A. Are they right? Despite being around for a while now, not many business owners, CEOs, and issuers truly understand crowdfunding, especially Reg.A crowdfunding. When you listen to this podcast, you’ll get a better understanding of why Mr. Brette is so bullish on the topic. From its liquidity options on secondary markets, costs involved, treatment of accredited and non-accredited investors, capability of going public and listing on a major exchange such as NASDAQ, or even if you want to stay private, plus the lack of stock restrictions and immediate stock saleability for founders, insiders, and affiliates, Mike makes a strong case to at least take a serious look into the option of going Reg.A
In addition, he tackles the topics of broker/dealers, transfer agents, Tier 1 vs Tier 2 issues, PPMs, KYC/AML, crowdfunding funding portals and platforms, and the best part of all: how to raise capital doing crowdfunding correctly without losing control of your company! Learn how this all relates to Reg.A as opposed to Reg.D.
Remember: most getting involved with crowdfunding do not have a network besides friends and family. Crowdfunding is difficult and often times more expensive than originally planned and nothing is easy about it (especially the marketing part). Align yourself with industry experts who can hand- hold and guide you through the process. This is crucial! So contact Mike Brette by phone at 951-236-8473 or by email here and get started with your raise today.
And if you plan on taking your company public at any point, take Mike’s advice and strongly consider going Reg.A from the start!
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.