In Reg A+, accredited investors who purchase securities in Reg D or Series A can sell a portion of their holdings, creating a powerful buy incentive given Reg A+’s strong liquidity and the likely step-up in valuation between capital events.
If you’ve been paying any attention to the news, you know that the pandemic has brought about a sea change in the role of retail investors. But here’s the macro story underneath that’s not making the big headlines: investors have cash and are eager to deploy it. According to Bloomberg, there’s $17 trillion burning a hole in pockets.
Selecting the best corporate structure for attracting investors is a very important factor to consider when launching a startup, particularly those in capital-intensive sectors such as biotech, medtech, life sciences, pharma, and similar.
We love seeing companies with life-saving technology get the capital they need to get their technology to patients. But we hate seeing the founders have to give up so much of their hard-earned equity to do so.
As the economy transitions from the Industrial to the Information Age, generally accepted accounting practices (GAAP) have come under fire from analysts and business owners. The issue is the valuation of Intellectual Property (IP) — those non‐physical assets such as trademarks, copyrights, patents, and proprietary databases that have value for their owners.
Breaking the Addiction to Venture Capital
While venture capital has its place in the entrepreneur ecosystem, they eliminate most startups and early-stage companies for consideration. Founders need to leave the old model behind.