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29 Sep Equity Crowdfunding vs. Reverse Mergers

I've seen the debate raging on both Investorshub, Linkedin and Twitter: should a company perform a reverse merger or vie for the equity crowdfunding route? It's an interesting question which does not, unfortunately, have a overarching answer for each firm that may be weighing the pros and cons of each--and there are pros and cons of both. I would like to discuss a bit about the pros and cons of equity crowdfunding as well as some of the pros and cons of going public via a reverse merger. Each company considering one option over another should weigh out each scenario...

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10 Sep Equitynet’s True Untapped Potential

Although not yet fully implemented, the JOBS Act promises to be a complete game-changer for the capital markets. I don't think we're truly cognizant of how huge the opportunity equity crowdfunding presents to both investors and entrepreneurs alike. As many have touted, it truly democratizes capital, providing needed liquidity to both nascent and established businesses alike. Even when crowdfunding becomes fully integrated into the complex and regulated financial system, the portals will still be required to follow the rules of engagement. But massive opportunity awaits them. And, while there are a number of crowdfunding portals out there, I've chosen to...

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09 Sep Drones & 3D Printing — What’s Next?

Going public early through the cheaper "back door" always seems favors companies poised at high growth markets. Traditionally new technology, changes in regulation (like the recent spat of marijuana reverse mergers) and Intellectual Property help to push smaller microcap companies to raise money via the reverse merger route. Some of the more sexy markets for tech these days are also beginning to use reverse mergers to take their companies public, raise awareness and ---ultimately---raise money for their businesses. The first comes to us from the maker of drones, Drone Aviation (as of the writing of this piece, the stock sits at...

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Different Currencies Concept Crowdfunding

06 Sep Sell-Side Liquidity Solution for Owners of Private, Closely-Held Businesses: Crowdfunding PIPE Transactions Directly into a Reverse Merger

Approximately 10,000 baby boomers will retire each day for the next 19 years. Of these, it is estimated that up to 7% own and operate businesses. With roughly 25% of the U.S. population retiring in the next two decades, the largest transfer of both personal and business wealth in the history of mankind has already begun. Significant opportunities exist for dealmakers assisting in the transfer and consolidation of business assets over the next two decades. Our model offers an alternative to traditional private equity for accredited investors looking to take advantage of the large growth in the M&A market over the...

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24 Sep Summary of JOBS Bill and Update

US House Passes “JOBS” Act to Help Small Businesses On March 8, 2012, the US House of Representatives passed a wide-ranging bill to help smaller businesses known as the Jumpstart Our Business Startups Act (JOBS Act). The House passed the bill by a vote of 390-23. We have reviewed the bill and while some of its technical language still needs further study, this alert provides a summary of the bill’s seven key provisions: 1. There will be a new securities term called an “emerging growth company,” which is a company that had less than $1 billion in revenues before going public. The...

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