Pre-Offering Period

What To Do Before You Start Raising Capital

In the time period before you start the offering, your planning process includes the following steps. We help you at each step of the way.

  1. We help you find the right securities attorney. Not as easy as it sounds because there are just not that many of them. In the State of North Carolina, for example, we can find only 100 securities attorneys that do this work, and most of them are either in Charlotte or Raleigh.(The Law of Supply and Demand for Securities Lawyers). The attorney that you select prepares all of the offering documents. We help you and the attorney figure out what kind of securities best fit your future goals, and we help the attorney write parts of the risk disclosure document.
  2. We help you establish the initial capital value of your company. We use an outside vendor, called AlgoValue, to conduct this analysis.Like all of our outside vendors, that we manage for you, you pay the cost of the vendor’s services, and we coordinate their work on your behalf.
  3. We help you create your own Investor Relations page on your company website. Unlike our crowdfunding competitors, who bury your profile page inside their big websites, we want you to have your own investor relations landing page, that you control. We use a professional web development company, SEO4Anyone, to create and host your IR page during the offering.
  4. We help you create your own email contact list of potential investors who already know your your company, and we supplement that list of potential investors with email contact lists that we may advise you to buy. We handle the entire email marketing campaign on your behalf, including the follow up calls to potential investors to set a time for you to call them to describe your offering.
  5. We help you create a company account at EarlyIQ, where you upload your offering documents for potential investors to review. Investors become verified as accredited investors at EarlyIQ.
  6. Investors leave EarlyIQ and land at FundAmerica, your company escrow bank and transfer agent, where they esign your subscription agreement and transfer their capital to your escrow account. We work with FundAmerica to create this account, and manage the account opening process for you.
  7. We help you create a brokerage account at our custodian clearing company, Folio Institutional. Your capital leaves the FundAmerica escrow account, and flows to your Folio securities account. For the bigger raises, we may advise you to use the Folio escrow and transfer services, as an alternative to FundAmerica. If we select Folio as the escrow agent, we may also make use of the other innovative services of Folio, including their ability to distribute securities, called Via. We also advise your potential investors to open a securities account at Folio to hold their private securities, that they will see in book entry form, every time they open their Folio account

This pre-offering period may take up to 3 months. We do most of the administrative work in opening accounts and managing vendor relationships for you.

Are you ready to raise capital?

You can begin by creating the initial documents that are placed on your new Investor Relations page. Download the documents here and get started.

  1. Create your Quick Deal Overview . This is the QDO for technology companies. The link to the full QDO goes on your IR page and leads to the page on your main parent website. The content of this QDO is used over and over again as a marketing tool in promoting your securities offering.
  2. This is the QDO for real estate development companies. It describes the  entire package of all properties that are placed into the special purpose entity. The SPE is the legal entity that issues all classes of securites to investors, including long term senior debt, mezzanine convertible bonds, and preferred stock. The QDO is embedded in the SPE website, and serves as the landing page for interested investors to learn more about the offering.
  3. Create the text and logos for your Investor Relations page.
  4. Create your power point presentation.  The full PPT is located on your main parent website. The PPT is used as the template for all of your public presentations and promotional events.
  5. Create your 3 page executive summary. The first six sections of the full company description provide the content for the three page summary. The IR page contains the link to the 3 page Executive Summary. The full company description document is given to your securities attorney to help create your full risk disclosure document. The full document is uploaded into your company account at EarlyIQ. where investors begin investigating your offering.
  6. Create the legal framework for a buy-sell agreement between the current owners of your company. In the risk disclosure document, this framework for a buy-sell agreement lets the potential investors know that you have a company continuation strategy if one of the owner dies or becomes disabled.

Call us at 919 975 4856 to discuss your goals.