When it comes to trying to raise capital for your startup, the stress can seem overwhelming. For those startups that operate in a niche industry, it can be even harder. However, it doesn’t have to be that way. In fact, those business owners in the know already use what is known as Reg A to raise the funds they need. There are several benefits to doing so.
No SEC Filings
Unlike a traditional IPO, there is no need to register with the SEC. Instead, what you file is known as a Form 1-A. This lets the company put out feelers to see how much of an interest there is from investors before needing to file the legal paperwork needed when going public. This is of great benefit to those companies that are limited in their resources on hand.
When you use Registration A to raise capital, you are able to use non-accredited investors to do so. This is great news for companies whose product or service may not have mass appeal beyond a specified group of investors or that do not have an established investor network in place.
When you are raising capital in the traditional manner, you are limited to advertising to accredited investors. However, when you raise money through the alternative Reg A, you are able to advertise on television, radio, and any other means that you can think of.
If you are interested in alternative funding for your startup business, please contact EquityTrack at https://www.equitytrack.co/.