We Provide an Internet Crowd Funding Website That Is A Much Better Model For Raising Capital
Since 1933, private companies have had an avenue of raising funds called a self-underwriting, or a direct corporate private offering. With the passage of the JOBS Act in April of 2012, companies have a new and better way to issue securities to investors, using the internet to attract investors and manage their capital raise.
The Private Capital Market is the main parent crowd funding website that allows both companies and investors to manage their communications in private, pass word protected member portals.
As the name suggests, crowd funding using the Private Capital Market is a technique of raising capital where the company prepares the documents related to the offering and self-underwrites the issuance of securities, directly to the sources of capital.
In other words, in the PCM self-underwriting, the company itself handles the administrative tasks of the offering, as opposed to relying on an outside broker or venture capital firm to act as the intermediary between the company and the sources of capital.
This model of issuing securities is different than most of the competitor models, and its great advantage is that it is designed to place control over the offering in the hands of the company.
There are three primary benefits of the company controlling the terms and conditions.
First, the terms and conditions can better match the type of capital the company needs, especially established technology companies who need growth capital. In many cases, the established company would prefer some form of debt or loan, rather than offering some form of equity, or ownership interest in the company.
Second, the amount of capital can be tailored to fit the future growth needs of the company. Many smaller technology firms usually need less than $3 million in funding. This amount is too small to interest most private capital firms.
Third, in a crowd funding self underwriting, the terms and conditions for an early round of capital can be customized to fit the future rounds of growth capital, without jeopardizing the founders and entrepreneur’s interest in continuing to build the company. This means that a logical sequence of terms and conditions can flow through all of the eventual rounds of capital raising.
The company will need to work with legal counsel to get the exact form and text of the terms and conditions to fit the type of securities for the specific offering.
The Private Capital Market Due Diligence Platform
Our website offers pass word protected administrative portal that functions much like an online series of deal rooms. At each level of the platform, the potential investor confirms and acknowledges that they have investigated the documents and request authorization to enter the next level of due diligence.
The CEO of the offering company is always in control of who is in the deal room and who has approval to enter the next level.
Once the investors have registered as members of the Private Capital Market website, and requested authorization from the company to enter the level one deal room, the company can manage the flow of information for the potential investors.
For more information contact:
Thomas Vass 919 975 4856