Most start-up, early stage and later stage privately held companies could use an extra $1,000,000 in equity capital. If this is the case for you, consider registering the securities at the state level under the Small Company Offering Registration (SCOR) to attract and build a pool of individual investors. This involves submitting an application (Securities Offering documents) for registration with the state(s) regulatory authority where the securities will be solicited and sold.
By registering the securities at the state level under SCOR you are allowed to advertise your securities offering through the general media. Once registered and your advertising plan approved by the state regulators, you will be competing head-to-head with financial institutions for individual investors. Your ability to advertise may not be effective unless your company can provide a higher “current yield” for consistent cash flow to investors. A SCOR Offering enables you to advertise in your regional Wall Street Journal, Investor’s Business Daily, local newspaper, as well as direct mail and or radio advertising. Imagine investors calling you to inquire about funding your company. This is an extremely important strategy.
Most states support SCOR and are anxious to help entrepreneurs qualify for the funding they seek. But the entrepreneur will need to do most of the “heavy lifting” when it comes to the design of the securities to be offered. How much of the company should be sold for how much? Is there a way to sell Bonds or other forms of debt to investors? What about preferred stock with no voting rights? What are investors looking for when investing in privately held companies? Where does one begin? These are only a few of the questions that must be addressed and answered before creating a securities offering under a SCOR.
One such company is offering this knowledge and advice complimentary as a “Pay it Forward” tactic, the primary focus of its overall business strategy.
Commonwealth Capital Advisors (CCA) has been the advocate for the entrepreneur since its inception in April of 1998. Assisting start-up and early stage companies in the process of raising seed, development, and expansion capital through the issuance of securities, is its only business. As the “Architects of Finance” they produce the proper deal structures through the use of GAAP compliant pro forma financial projections (blueprints), house them in securities offering documents (legal paperwork) and then direct them to Broker Dealers (stockbrokerage firms) to have their securities sold to raise substantial amounts of equity capital. Amounts can range from $100,000 to $50,000,000 for operating companies and up to $500 million dollars for REITs or other Investment Funds.
You no longer need to spend vast amounts of time and money engaging in effectively raising capital. The entire capital raising process can be done by the entrepreneur through the use of CCA’s revolutionary Financial Architect System™. Financial Architect®, a patent pending system, was invented by Wall Street Investment Bankers, Securities Attorneys and CPAs.