Risks of Regulation A Securities Offerings You Need to Know

Opportunity to Raise Capital

There are definite opportunities and risks to raising capital using the Regulation A securities exemption for small business issuers. Regulation A, like everything Congress does, sounds good but the actual implementation becomes a bit more complicated and a bit less useful in many cases. Regulation A Tier I and Regulation A Tier II securities offerings are no exception. If you are undertaking a commercial real estate development project and/or are seeking some form of start-up stage financing, the Regulation A approach is not likely to be a workable alternative from a pure business viewpoint. Talk to one of our consultants regarding these issues and what paths may be best for the business issues your project or business face.

Special Bulletin on Capital Financing

The SEC has released Final Rule 33-10884 that includes landmark changes to Regulation A, Section 4(a)(6) – “Regulation Crowdfunding” or “Reg. CF” – and Regulation D private placement securities offerings, together with new rules and guidance on securities offerings for small and medium size issuers and commercial real estate developers. This new final rule creates fundamental changes in how our capital markets will function in the future and how entrepreneurs, businesses and CRE developers can access capital financing for their business ventures. We are in the process of updating the website to reflect these incredible changes (and their associated new opportunities) and urge you to review the new rules and regulations with your legal counsel before undertaking further capital financing activities as you have in the past. Please feel free to contact us to discuss your proposed capital financing needs. In the meantime, we suggest you read some of the relevant information already posted on our website (start here).

business accelerator program support for securities private placement offerings
INVIZEN provides entrepreneurs, developers and businesses with a path forward.

The INVIZEN Platform is designed to engage your business or project at the point in time where you need an accelerator to move the ball forward. The INVIZEN Business Accelerator Program focuses on providing supporting services and programs with the goal of achieving the conditions for that next stage of capital financing and/or profit-taking. 

Best-In-Class Investment Loss Prevention & Mitigation

The INVIZEN Platform was conceptually designed to support the end-goal of preventing investment losses from being realized on commercial real estate loans and investments. 

Most Advanced Underwriting System in CRE Finance

The INVIZEN Platform design construct offers an end-to-end approach that engages the project or business at whatever life-cycle stage the given project or business may be currently found to be operating within.  The INVIZEN Platform is designed to provide a progressive sweep of the entire due diligence spectrum of issues with every review.  It starts with the valuation of the transaction opportunity. 

The Verifier

Incredible Underwriting Attention to Detail

Collateral underwriting is important but the reality is that collateral underwriting really only comes into play for EAD calculations and insurance risk mitigation.  The value of the opportunity is the real issue and the Verifier Report from INVIZEN directly addresses this issue in terms of determining if the proposed transaction is priced at a discount to market based upon the specific risk profile presented by the project, the project’s business and the project’s market.  That’s the Verifier Report.

Market Risk Management

Full-Scope that’s fully tested.

First Look is our real-time market feasibility analysis reporting system for which there is no peer.  The next-gen analytics design of First Look provides testing of the empirical assumptions and findings of the market feasibility analysis to determine if a reasonable basis exists for their inclusion and/or use in the resulting report that includes detail you just can’t find anywhere else.  That’s the First Look Report.

Financial Risk Assessment Underwriting

Full Underwriting Support to Demonstrate Risk Controls

Final Check is the crown jewel of the INVIZEN Platform.  Final Check provides full capacity risk underwriting, collateral risk underwriting, credit risk underwriting and default risk underwriting financial risk assessment data and findings that is backed by a post-funding monitoring program that prevents the most common causes of credit and default risk events from becoming your loss severity risk realities.  That’s Final Check and there is just nothing like it.

Asset Monitoring for Performance Assurance You Can Afford

The outflow is then matched into our unique credit risk management platform that ties credit risk (again, think hard about managing CECL) and default risk prevention program known as iCREDIT. 

CECL Compliance Now Means New Opportunities to Profit

This unique system provides real-time forensic auditing of every transaction event and generates an entirely new set of GAAP financial statements for the benefit of all financial partners that can be accessed in real-time. 

Integrity & Surety Via Real-Time Forensic Robo-Auditing 24/7

Financial reporting transparency risk, execution risk, default risk and all of the associated risks are now within the scope of being proactively managed.  That’s the INVIZEN approach that makes the difference in everything we do. 

Answers That Create New Opportunities

We provide opportunities in the form of distressed asset acquisition opportunities for sponsors and developers that meet the specific underwriting standards and requirements of the specific funds and institutions we support. 

The best-in-class CRE new construction and acquisition financing underwriting tools

Our compliance services focus on FINRA (we are a FINRA Compliance Vendor) and supporting broker-dealers, banks (FASB Topic 326 compliance opportunities regarding CECL), credit unions, community banks, advisors, family offices and institutions that are seeking something more than reactive data and mitigation as being the only likely outcome. 

INVIZEN is about reaching your peak opportunity efficiency level and having the freedom to focus on transactions that are profitable; transactions that have the likelihood of actually closing. 

Clear up your backlog of time-sensitive opportunities. 

Reduce your loss reserve calculations. 

Turn CECL into a competitive advantage. 

Exceed expectations of regulators when it comes to compliance with FINRA, SEC, OCC or the several states. 

When you engage with Rainmaker Analytics you are engaging with a team and a system that is designed to make the financial instruments your firm engages in become a matter that is manageable, less frustrating and more profitable. 

Your new path forward starts with that first phone call and confidential consultation.