Raise Capital
with Netshares
What types of companies does Netshares support in raising capital?
Netshares supports a wide range of companies, including:
Startups: Netshares can help startups raise capital through equity crowdfunding, which is an increasingly popular funding method for early-stage companies. We offer customized fundraising strategies and ongoing support to help startups achieve their fundraising goals.
Growth-Stage Companies: Netshares can also support growth-stage companies that are looking to raise additional capital to fuel their expansion. We offer a range of fundraising options, including Regulation CF offerings, private placements, and Regulation A+ offerings, which can help growth-stage companies access capital more easily.
Real Estate Companies: Netshares has experience working with real estate companies to help them raise capital for their projects. We offer a range of fundraising options, including private placements and Regulation A+ offerings, that can help real estate companies access capital more easily. Reach out to us today to learn more about how to raise capital.
Small and Medium-Sized Businesses: Netshares can support small and medium-sized businesses across a range of industries. We offer customized fundraising strategies and ongoing support to help these companies raise the capital they need to grow and thrive.
In general, Netshares works with companies that are looking to raise capital through a securities offerings. We have a deep understanding of the regulatory landscape and the capital markets, and we use this knowledge to help our clients achieve their fundraising goals. Whether you are a startup, growth-stage company, real estate company, or small and medium-sized business, we can help you access the capital you need to succeed.
Alternative Securities
For more than two hundred years investors have publicly traded stocks and bonds. But those types of investments have their limitations, leading savvy investors to alternative securities for the purpose of generating income, diversifying portfolios, boosting returns, or raising funds for other projects.
These alternatives include real estate, stock or membership units in privately-held businesses, private equity, commodities, venture capital, farmland/timberland, mineral rights, tax lien certificates, hedge funds, annuities, art and collectibles, or even wine collections or antique coins. In short, a multitude of investment options are available beyond the floor of the New York Stock Exchange.
Why do people invest in alternative securities? Some of the most prevalent reasons include favorable economic conditions, less dependence on typical market fluctuations, leveraging specific knowledge or skills, tax advantages, illiquid investments, higher fees, and market volatility.
How Can You Market Your Securities?
Marketing securities can be a complex process, and it is important to ensure that you stay compliant with all relevant securities laws and regulations. Here are some general strategies you can use to market your securities:
Define your target audience: The first step in marketing your securities is to define your target audience. Who are the investors that you want to attract? What are their interests, demographics, and investment objectives? Once you have a clear understanding of your target audience, you can develop marketing strategies that are tailored to their needs.
Leverage your network: One of the most effective ways to market your securities is to leverage your existing network of contacts. This includes family, friends, business associates, and other professional contacts who may be interested in investing in your securities. You can also reach out to industry associations, social media groups, and other networks to find potential investors.
Create a compelling investment story: To attract investors, you need to create a compelling investment story that outlines the benefits of investing in your securities. This includes information about your business model, market opportunity, growth potential, and other key factors that make your securities an attractive investment opportunity.
Use digital marketing tools: Digital marketing tools such as email marketing, social media, and paid advertising can be effective ways to reach potential investors. However, it is important to ensure that all marketing materials comply with securities laws and regulations.
Partner with a broker-dealer: Partnering with a broker-dealer such as Netshares can be an effective way to market your securities to a wider pool of investors. Broker-dealers have established networks of investors, as well as expertise in marketing and compliance, which can help you reach more potential investors while staying compliant with securities laws and regulations.
Overall, marketing securities requires a combination of strategic planning, clear messaging, and compliance expertise. By developing a targeted marketing plan and partnering with the right professionals, you can increase your chances of success in raising capital through securities offerings.
Regulation A+ Offering (Reg A+)
Regulation A+ is a securities offering exemption that was adopted by the United States Securities and Exchange Commission (SEC) in 2015 as part of the JOBS Act. It allows small and medium-sized companies to raise up to $50 million in a public offering over a 12-month period through a streamlined and cost-effective process.
If you are considering using Reg A+ for your website, here are some key things to know:
Eligibility: To use Reg A+, your company must be a US or Canadian-based company that is not already a reporting company under the Securities Exchange Act of 1934. Your company must also be current in its reporting obligations to the SEC and meet other eligibility requirements.
Tier 1 and Tier 2 Offerings: Reg A+ has two tiers. Tier 1 offerings allow companies to raise up to $20 million in a 12-month period, while Tier 2 offerings allow companies to raise up to $75 million. However, Tier 2 offerings require more extensive disclosure requirements and ongoing reporting obligations than Tier 1 offerings.
Filing Requirements: To use Reg A, company must file an offering statement with the SEC, which includes information about the company, the securities being offered, and the offering terms. The offering statement must be qualified by the SEC before the offering can begin.
Marketing the Offering: Companies can use their website and other advertising channels to market their Reg A+ offering, but they must comply with SEC rules regarding advertising and solicitation.
Ongoing Reporting: Companies that use Reg A+ must file annual and semi-annual reports with the SEC, as well as other ongoing disclosure obligations. Tier 2 companies also have additional reporting requirements.
Benefits and Drawbacks: Reg A+ can provide smaller companies with an alternative to traditional IPOs or private placements, allowing them to raise capital from a wider pool of investors. However, there are costs associated with preparing the offering statement and ongoing reporting obligations, as well as potential risks associated with the offering process.
It's important to consult with legal and financial advisors before deciding to use Reg A+ for your website, as the process can be complex and requires careful planning and execution.
Regulation Crowdfunding (Reg CF)
Regulation Crowdfunding, also known as Reg CF, offers an exemption from the registration requirements for securities crowdfunding. Through Reg CF, companies can offer and sell securities up to $5 million without having to register its offering with the SEC. This Regulation offers vast opportunities for start-ups and small businesses to raise capital. Regulation CF allows anyone from the general public to make an investment. Investing under Regulation CF can be risky and investors can lose their entire investment. As such, the SEC has limited the amount one can invest, which is dependent upon one’s net worth and annual income.
Equity Crowdfunding is a financing method that raises money through soliciting relatively small individual investments or contributions from a large number of people. Specific Securities and Exchange Commission (SEC) regulations exist for companies hoping to carry out securities offers through equity crowdfunding. According to Regulation Crowdfunding, a company must register with the SEC before making any offer or sale of security, unless said company is exempt.
The Securities Act of 1933 required registration of any offer and sale of securities, absent an available and applicable exemption from registration. The Jumpstart Our Business Startups Act enacted in 2012 loosened some regulations regarding the offer and sale of private securities. In particular, Securities Act Section 4(a)(6) of the JOBS Act allows certain crowdfunding transactions exemption from registration. In 2015, the Commission adopted Regulation Crowdfunding, which allowed eligible companies to raise funds via Regulation Crowdfunding beginning May 2016.
Reg D Private Placements
Regulation D allows the raising of funds and capital through private offerings of debt and/or equity securities without registering the securities with the Securities Exchange Commission (SEC). Regulation D is not to be confused with the Federal Reserve Board Regulation D, a regulation that limits withdrawals from savings accounts. Many companies prefer raising capital under Regulation D versus going through a public offering's tedious requirements. Regulation D offerings give companies plenty of time to sell securities that cannot be issued under certain circumstances. Companies raising funds through a Regulation D investment typically have less burdensome requirements compared to those of traditional public offerings. Several clauses within the regulation emphasize how issuers can solicit prospective investors from their network.
Regulation D set SEC regulatory measures for implementing private placement exemptions. Raising capital through Regulation D is beneficial, as it streamlines the acquisition of funds for private companies. Without a public offering and at a significantly lower cost, small entrepreneurs can expand their capital through the sale of equity or debt securities. While extremely advantageous to up and coming businesses, regulatory requirements apply under Regulation D. Regulation D imposes numerous rules highlighting qualifications for issuing securities' registration requirements. This regulation divides into three main exemptions: Rules 501, 502, and 503. Rule 501 defines all terms utilized throughout Regulation D. Rule 502 subsequently refers to important conditions required to meet certain exemptions under Regulation D. Conditions stated in Rule 502:
Issuers must provide information and disclosures
General Solicitation is prohibited
When securities sold are placed on the market again, one must observe certain restrictions
Lastly, Rule 503 requires all issuers to fulfill a Form D with the SEC. Businesses must file this form before making an offering under Regulation D.
Legal Requirements for Regulation D
Entrepreneurs can raise their capital with only one or two investors under Regulation D.
Businesses, however, still must adhere to state and regulatory measures. Issuers must submit both the proper framework and disclosure documentation.
Form D
Issuers must file Form D with the SEC. One can access and file this form online after an initial sale of securities. Form D requires far less information to complete than the lengthy forms involved in public offerings. One must simply record names and addresses of a company's executives and directors, in addition to disclosing a few details regarding an offering.
Debt Securities
Debt securities, like promissory notes and bonds, allow you to be paid before equity investors in the event of the company’s bankruptcy. A debt based offering is often term loans. These loans can pay any amount of interest or not pay an interest. Many different structures for debt securities exist. You should therefore strongly consider learning about a particular security’s risks before investing. Some risks associated with debt securities include:
Repayments and payments are not guaranteed: while you, as a creditor, have payment priority if a company dissolves, a company may simply not have enough money to pay its debts
No third party credit ratings: credit ratings are designed to help investors gauge the risks of a debt security. Securities on our Portal might not be rated by rating agencies such as Moody’s and
Standard & Poor’s, leaving investors with little to no objective measure to judge the company’s creditworthiness
Interest rate might not adequately compensate your risks: chances are that the interest you will earn does not adequately compensate the level of risk you are taking
Lack of security: a promissory note may or may not be secured by property, such as an interest in real estate or equity
Equity Securities
An equity security, such as the common or preferred stock of a company, makes you a joint owner of that company. As an owner, you have the right to share in any profit distributions and also share in the company’s value appreciation. There are, however, some risks involved with holding equity, including but not limited to:
Repayments and payments are not guaranteed: while you, as a creditor, have payment priority if a company dissolves, a company may simply not have enough money to pay its debts
No third party credit ratings: credit ratings are designed to help investors gauge the risks of a debt security. Securities on our Portal might not be rated by rating agencies such as Moody’s and
Standard & Poor’s, leaving investors with little to no objective measure to judge the company’s creditworthiness
Interest rate might not adequately compensate your risks: chances are that the interest you will earn does not adequately compensate the level of risk you are taking
Lack of security: a promissory note may or may not be secured by property, such as an interest in real estate or equity
Houston Main Office
Netshares Financial Services, LLC is an SEC registered broker-dealer and a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investors Protection Corporation (SIPC). As an intermediary, we provide opportunities to connect private companies with investors for securities offered and sold under Title II, III, and IV of the JOBS Act.
Netshares Financial Services, LLC By accessing this website and any pages thereof, you agree to be bound by the Terms of Service and Privacy Policy. This website is operated by Netshares Financial Services, LLC (“Netshares”), a broker-dealer registered with the U.S. Securities and Exchange Commission (the “SEC”) and a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investors Protection Corporation (“SIPC”), which protects securities customers of its member up to $500,000 (including $250,000 for claims for cash). An explanatory brochure can be found at www.sipc.org. Netshares is located at 3200 Wilcrest Drive, Suite 275, Houston, Texas 77042. You may find the background of our broker-dealer and investment professionals on FINRA’s broker/check.
Investment opportunities accessible through this website include offerings made in reliance on the registration exemptions provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), Rule 506 of Regulation D promulgated thereunder, Regulation A, or under Section 4(a)(6) of the Securities Act and Regulation Crowdfunding thereunder. Unless indicated otherwise with respect to a particular issuer, all securities-related activity is conducted by Netshares. Investment opportunities listed on this website are intended for investors who do not have a need for a liquid investment. Investments listed on this website are speculative in nature and involve a high degree of risk. Past performance is not indicative of future performance and the value of an investment may go down and result in partial or total loss of your investment. Investors who cannot afford to lose their entire investment should not invest. Neither the SEC nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through this website. All securities listed on this website are being offered by, and all information included on this website is the responsibility of, the applicable issuer of such securities. Netshares does not verify the adequacy, accuracy or completeness of any information, and no communication, through this website or in any other medium, should be construed as a recommendation for any security offering listed therein. In making an investment decision, prospective investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved, and are strongly encouraged to consult with their tax, legal and financial advisors.
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