Pitch Decks for Raising Capital

New Requirements, New Limitations & New Pitch Deck Opportunities

You need to raise capital financing – more specifically, you need to raise equity capital financing, and you need a pitch deck that generates interest, creates deal opportunities and complies with the new securities regulations.

know the law before you send out a pitch deck

Welcome to Pitch Deck Central

Compliance with the new securities regulations is no longer optional when it comes to pitch decks, business plans and other investor communications. You need to know the requirements and the limitations before you charge off into the capital markets.

New Types of Pitch Decks Have to be Deployed

The new regulations include the new Rule 206 and new Rule 241 requirements, disclosure limitations, and communications limitations. The good news here is the opportunity to conduct pre-offering communications under these rules to generate investor interest using mass advertising. Spoiler Alert: mass advertising is the key to success in all business endeavors and that makes raising capital more efficient and more reliable than any other method.

Regulation CF Crowdfunding Securities Offerings
demo day event business plans for crowdfunding raises
The goal is using 21st Century innovations to attract capital for businesses and CRE projects

Pitch Deck Pointers for Soliciting Unaccredited Investors

The first type of “new” pitch deck we will discuss is the pitch deck or business plan that is communicated to the investing-public (and not just to accredited investors, angels, and venture capital funds) before the issuer (that’s you) has elected an offering exemption. The important concept here is to understand you are making a general solicitation but not an offer to sell securities – the regulations are very clear on this point. Your pitch deck under this rule (Rule 206) has to be limited in scope. Among other considerations and requirements, your pitch deck or business plan has to be qualified as to the following:

  • You must disclose that you are not making an offer to sell securities; and
  • You must disclose that no binding offer is being made or will be accepted; and
  • You must disclose that you will not accept any funds and any funds received will be returned.

You want certain key elements in this pitch deck or business plan. Think of it as your “elevator pitch” that focuses briefly on the following key elements:

  • Overview of Company.
  • Overview of Management Team.
  • Overview of Market Opportunity.
  • Overview of Business.
  • Overview of Potential Financial Results of Future Operations.
  • The Ask: How Much Capital You Believe You Will Be Seeking.

This pitch deck will have to be created in light of the realization the Securities & Exchange Commission will be reviewing and examining it to make sure it does not violate any of the provisions of the Securities Act of 1933, as amended. THAT MEANS YOU SHOULD CONSULT WITH AN ATTORNEY BEFORE YOU RELEASE YOUR PITCH DECK.

Pitch Decks & Business Plans for Accredited Investor Communications

The accredited investor pitch deck rules (i.e.: new Rule 241) require you to limit your audience to accredited investors who meet the qualifications of Rule 241 only. These new requirements are intended to allow you to test the potential market interest in your capital financing proposal but you must keep in mind the pitch deck, business plan and all communications are subject to being a required submission to the SEC if your final registration-exemption claim is made under Regulation D, Rule 506(b). YOU SHOULD REVIEW YOUR COMMUNICATIONS WITH LEGAL COUNSEL BEFORE YOU SEND THEM OUT IN EVERY CASE.

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