Capital Planning Valuation Strategy™ a 6-week process designed to help business owners decide whether a Reg A+ offering is right for them.
The process provides a path to maintain control of your through multiple cycles of fundraising while building a blueprint for a successful Reg A+ Offering.
Pro-forma Capitalization Table
Pre- and Post-money Company Valuations
Shareholder Analysis & Liquidity Events
Custom Marketing Plan for Promotion of Offering
Custom Reg A+ Process Map
Cash Flow Projections From Funding Process
Make Funding Decisions With Confidence
Raising capital is an intensive but necessary process for growth companies. The CPVS™ is designed for entrepreneurs by entrepreneurs. It provides the roadmap business owners need to make funding decisions with greater confidence. The CPVS™ helps make tough decisions easy.
Understand How Potential Investors View Your Company
Understand Capital Requirements and Feasibility
Anticipate the Regulatory and Compliance Requirements of Funding
Recognizing Normal Ebbs and Flows To Keep Momentum
Promoting Reg A+ as an Incentive for a 506(c)-Funding Round
The Importance of Capital
The importance of capital for small and medium-sized companies is clear. It is the lifeblood to help you weather economic disaster, exploit cost-saving technologies, or fund clinical trials.
The CPVS™ helps you prepare for the future of your company using recent innovations in private capital markets, namely Regulation A+ Offerings via the JOBS ACT of 2012.
Reg A+ Offerings have seen explosive growth in the past few years, with $3.4B being raised by 3404 companies in 2021 alone.
A Brief History Lesson
Prior to the passage of the 2012 Jumpstart Our Business Startups (JOBS) Act, smaller and medium-sized companies seeking to raise capital were ignored by the big Wall Street firms and limited to an onerous financing process – Regulation D of the Securities Act – that restricted the number of potential investors in an offering and the method by which they could be solicited:
Rule 506(b) – raise an unlimited amount of money from an unlimited number of accredited investors and up to thirty-five unaccredited investors. Accredited investors are individuals with earned income greater than $200,000 ($300,000 for a couple) for the previous two years and expectations for the same in the current year of investment or a net worth of $1 million exclusive of primary residence
Rule 506(c) – any offering made under Regulation D allows general solicitation or advertising of the offerings to accredited investors if the offeror confirms the accredited status by physical review of supporting documentation such as tax returns, bank and brokerage statements, credit reports, and similar information.
Introducing Reg A+
Regulation A+ was authorized by an amendment to JOBS Act in 2015. It enables private companies to raise up to $75 million from retail, institutional, accredited, and non-accredited investors more quickly, with less administrative burden, and lower costs than a traditional IPO or restrictive Reg D private offering.The legislation for Regulation A+ expanded access to public capital markets for small and medium-sized companies.
A Reg A+ offering combines the benefits of the familiar IPOs associated with the large Wall Street underwriters with considerable cost savings, less administrative hassles, and a shorter time to market. Unlike Reg D, there are few restrictions on who can invest, solicitations occur by delivery of a qualified offering circular (an abbreviated version of a traditional IPO prospectus), are exempt from Blue Sky regulations (Tier 2) and purchased shares can be sold with few restrictions. Companies can use the Reg A+ offerings numerous times, subject to the maximum funds raised in a single 12-month period ($75 million).
