New Tools for Capital Raising from the SEC

New Tools for Capital Raising from the SEC

In an effort to demystify the capital raising process the SEC has unveiled several new tools for entrepreneurs to utilize when starting the process. Located at | Small Business Capital Raising, there are several different educational tools available to learn about the processes for companies and their founders to find the solutions that will best serve them in achieving their goals.

Starting with the Building Blocks section, which explores various ways to raise capital, this section of the SEC website provides users with information on three major questions businesses face when beginning the capital raising process. Each section is straight forward in the questions it will help you answer.

  1. How do I know when I am ready to raise capital from investors?
  2. What different types of securities are issued to start up investors?
  3. What are the differences in friends and family, angel investors and venture capital funds?

By supplying these education materials for business founders, it can speed the raise and improve your access to capital by allowing you to know what process fits the situation best and what type of investor you are looking for at this point in your company’s growth. Having this knowledge of the basics can help save time and resources for other areas of your business as it will help smooth the bumpy road of a capital raise.

One of the most important bridges you will cross in your journey through out the process to raise capital is figuring out what exemption you will use for your capital raise. The SEC has created the Navigate Your Options section which will walk you through a series of 8 questions to give you a great suggestion as to what exemptions will be available for you to raise capital.  Some of the more often asked about exemptions are covered, in a much deeper fashion in the Exempt Offerings section, which also includes some of the recent Jobs Act updates as to what is available in the capital raising landscape.

The site also holds original data resources to help guide you on this journey from interactive maps showing the where and how much capital has been raised. To a complete study and research report on the status for raising capital across the US with an in-depth comparison of all the differing aspects that can go into this process. Not to mention a summarization of all the different compliance guidance the SEC has and how they affect the businesses that they regulate. An A to Z glossary of the language of capital raising is included as well as links to the SEC’s Capital Raising Youtube channel. All with the goal of supplying information and education for those new to the process.

With the website supplying these useful introductory tools to the capital raising process the SEC is helping educate small business professionals and start up founders about the language and the structure of these deals. This allows for a smoother and easier to navigate process for all parties involved as the subject matter and how it is presented allows those who use it, to become more comfortable and confident in the process.

Here at Stock Legal, we encourage clients to review these materials before our first meeting to streamline the capital raising process. This makes the raise move faster and aids with getting everyone on the same page aboutthe options and the process at hand, not to mention how helpful an understanding of all the terminology of capital raising can be. Please reach out and allow us to represent and guide you through the capital raising process with our customer service oriented team of attorneys.