Business Equity Financing in the Age of Not-So-Public Offerings
The new rules enacted by the SEC in November 2020 fundamentally change how businesses and entrepreneurs can access equity financing for business growth capital and commercial real estate development projects in a way that provides greater cost efficiencies for sponsors and better leverage to boot. Of all of the dramatic changes, the most impactful may in fact be the cap lift for crowdfundings to the $5 million level.
This one change now creates the opportunity for businesses to leverage as much as $75 million in capital financing at the lowest possible cost and on terms that used to only attend companies undertaking Initial Public Offerings (“IPOs”). The difference is the cost and time requirements under the crowdfunding rule change amount to about a third of the traditional IPO approach (more or less) in terms of both time and cost – an important difference to be sure. The new rules create a pathway forward that allows the role of the capital accelerator approach to be fully magnified to maximize leverage and the surety of outcome that all participants crave.
Overview of Accelerator Program Key Points
Find out how to get your program moving forward. Take back your future. Put the demands of venture capitalists, angel investors and lenders behind you. You never needed them, and now they have no reason to be part of your future. Start with a consultation with one of our consultants today and may the odds be ever in your favor.