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.
The most common question we get asked is whether it’s really possible for a life sciences company to do a substantial raise of $30M or more via Reg A+, especially if they’re pre-revenue, even pre-clinical. And the answer is yes.
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.
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.