On May 16, 2016, Regulation Crowdfunding, commonly called Reg CF, became law. Reg CF is a securities exemption that allows U.S.-based companies to raise capital online from both FINRA approved “funding portals” as well as broker-dealers.
We feature many of the privately held companies that are raising capital under Reg CF. Reg CF is one of three securities exemptions that enable online capital formation. Startups and private companies have been one of the most successful asset classes in the past 20 years. These companies are not listed on major exchanges. However, thanks to technological advances and new regulatory provisions, these investment opportunities are now available online.
Reg CF provides you with an exciting opportunity to invest in a new company before it goes public. The company must file reports on the website of the Securities and Exchange Commission (“SEC”), www.sec.gov, including an offering statement and annual reports. But the filing requirements and costs are significantly less expensive than a publicly traded company. All the links that we provide to funding portals take you to the campaign page of a funding portal that is registered with the SEC and a member of FINRA. Many of the funding portals also provide a secondary trading platform for the securities that were sold under Reg CF. After one year, you may buy and sell securities that were issued under Reg CF in a secondary market. We love this concept because there is no ability to short stock on these private equity platforms.
Our website, Private Equities Market, aggregates current offerings from funding portals that operate under the provisions of Reg CF. These investments are risky and have limited liquidity. Consequently, we also feature some small cap public companies for your investment consideration. These publicly traded companies offer the same growth opportunity as the Reg CF issuers, but you are investing in a stock that is currently trading, as you must buy the shares of the publicly traded companies in the open market.
We strongly believe in American entrepreneurs, and we are pleased to feature these early-stage companies on our website. Please click on the links and visit those companies that are of interest.