The key benefits & risks
What are the steps for raising?
It's a partnership
A common problem that companies face when growing their business is access to capital and this can have a profound impact on them realising their full potential.
In September 2013, the world of private investing in the US became much more accessible to retail investors, 80 years prior to that, any company wanting to sell private securities was restricted to selling to their own network of family and friends. This was very limiting and existed mainly because of the ban on ‘general solicitation’ of a private security. One of the primary ways private companies raised funds was through Rule 506 of Regulation D.
Regulation D is an exemption from registering securities with the SEC. When Title II of the “Jump Start our Business Startups” (JOBS) Act took effect in September 2013, Rule 506 of Regulation D was split into 2 separate exemptions, 506(b) and 506(c). 506(b) preserved the old Rule 506, but 506(c) changed the world of private investing.
Under 506(c), the ban on general solicitation was lifted and issuers could take their deals to the world of accredited investors looking to invest.
The FUNDSITION platform uses the 506(c) exemption to support companies in raising capital. Let’s have a look at an example of where Private Equity money flows.
If you are interested in raising capital for your business through FUNDSITION, then we ask you to start the assessment process.
We highly recommend you view the issuer process page to learn about the steps involved for capital raising on FUNDSITION and better prepare your company.
The first step is the Expression of Interest form below, it will give us some preliminary background on your business, once you have submitted this questionnaire, you will be contacted by one of our team.
We look forward to supporting you with your capital raising journey.