Category: Capital Formation
Non-Essential Business Owners Newswire
?Today most nonessential business owners are faced with two choices in this pandemic shutting down, closing up shop or staying open for survival refusing to comply with Statewide COVID-19 limited capacity rules orders remaining open struggling to operate risking their livelihood.
Most businesses need to raise money at some point to grow or stay alive. MKG Tax Consultants Crowdfunding Advisory Service can be a great way to fund your business through thousand of potential investors.
Most Platform requirements requires companies development stage have products already on the market and demonstrate growing revenue year over year and have $300,000+ the previous year. Companies must be legally equipped as an LLC or Corporation, Company must seek to raise up to $1.07M under Regulation Crowdfunding or seek to raise up to $50M under Regulation A+ with option to simultaneously run side-by-side Regulation D offering to raise unlimited amounts of money from accrediated investors.
SEC Harmonizes and Improves “Exempt Offering” registration, facilitating access to capital and investment
One of the biggest changes the SEC has implemented is the legality of “finders” receiving commissions or payments for brokering deals and introducing investors to issuers, syndicators, developers, etc. Before this change, only broker-dealers were allowed to receive compensation for such deals.
With the new changes, these finders can now legally receive these commissions and other transaction-based compensation from issuers.
The ability to legally monetize your connections is something many have been waiting for for quite a long time!
Exempt private offerings have traditionally served an important role in providing capital for smaller and medium-sized companies, often along their path to the public markets.
Overview of Amended Capital-Raising Exemptions
Fresno Capital Formation believes this change will allow Reg CF will increase from current limits 1.07M to 5M
Regulation A Crowdfunding will increase from 50M to 75M