The “Mini IPO” – How Companies Raise Capital From Retail Investors Without Going Public

Growing a business is difficult, especially when it has limited access to capital. Thousands of businesses with the potential to positively impact the world fail each year simply because they lack the capital to scale or sustain their growth.

Raising capital from friends and family can only take a business so far and access to venture capital can be extremely competitive, not to mention the cost. Founders often find themselves forced to sell a majority share of their business to venture capitalists in early funding rounds.

The other traditional option of raising capital through an initial public offering (IPO) by selling shares of the company which will then be traded on the stock exchange is simply not feasible for most early stage companies. startup. The process involves a huge amount of paperwork and high ongoing costs.

A+ Regulation: The “Mini IPO”

The JOBS Act established the framework for Regulatory A+, which was created to provide small businesses with an easier and more cost-effective way to raise capital from individual investors.

Under Regulation A+, companies can now sell securities to the general public, including non-accredited investors, without the burden and cost of going public.

This regulation is now used by several companies to raise growth capital, fund real estate transactions, and even split and sell shares of assets such as real estate, artwork, collectibles, and even horses. race.

Knightscope KSCP recently raised two rounds of funding through Regulation A+ before listing on NASDAQ.

Dalmore Group, the leading broker for Regulatory A+ raises, has already helped more than 200 companies raise capital under this regulation. Some companies currently offering deals include Aptera Motors, Boxabl, Home Bistro, SafeRx, and dozens more.

Benzinga will speak with Etan Butler of the Dalmore Group during a free live event at 2:00 p.m. ET on June 28, 2022, about how companies can use a streamlined process to launch a Regulation A+ bid. It will even be live on YouTube.

Image by Prostock-studio on Shutterstock

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