The options for raising capital for your business or project have never been more powerful. Multiple options including Regulation D 506(c), Regulation CF and Regulation A+ provide the ability to generally solicit the public for investment and raise private capital.

One decision item for a securities offering that is critically important is the minimum offering amount. A minimum offering amount sets the minimum amount of capital that needs to be raised prior to the issuer company being able to declare the offering a success and begin utilizing the invested funds. Certainly many companies execute offerings without a minimum offering amount. Most of these companies are able to use any initial capital effectively to accomplish corporate goals. Other securities offerings do have minimum offering amounts and these would include, for example, an offering to raise funding for the purchase of a real estate property wherein the issuer needs to raise a minimum amount of capital to be able to purchase the asset.

The minimum offering amount protects investors from a scenario where the issuer utilizes invested funds prior to an amount that allows for the achievement of the stated goal. It also benefits the issuer as it prevents investors from entering the cap table until such time as that minimum amount of capital has been raised.

Interesting in raising capital for your business? Call us today to discuss! (720) 586-8610