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Capital-Raising Strategies

Organizations that need to raise capital in order to fulfill their potential have a number of capital-raising strategies available to them. We help our clients sort through all the possible securities offering strategies, selecting the one (or sometimes a combination) that best aligns with their goals and their budget.

PathLight Law works to match the right securities strategies with our clients’ goals. Our offering strategies are designed to align with our clients’ missions, maintain founder control and/or leverage our clients’ communities to support their capital raises.

Many of the strategies we employ are broadly considered “community capital” raise strategies because they permit our clients to publicly promote their capital raises and to accept investments from their community members–both accredited (wealthy) and non-accredited (community) investors. We navigate securities regulations so that our clients can use more than one funding strategy either concurrently or sequentially to meet capital-raising goals.

 

Types of Strategies

Regulation Crowdfunding

This strategy allows a public offering of up to $5 million to investors in all 50 states including wealthy (accredited) and community or retail investors.

Nonprofit or charitable offerings

Charities with stable revenue sources have multiple offering strategies that permit the raising of debt capital in one or multiple states and through registered and exempt offering options.

Private offerings

Companies have multiple options for private raises including friends and family raises, institutional, venture, and foundation rounds, traditional Seed and Series A offerings, and even offerings that can be advertised (limited to verified accredited wealthy investors).

Cooperative membership and investment offerings

Both membership and preferred equity offerings need legally compliant strategies. We help with offering types including memberships, member loan campaigns, and preferred share offerings and find the right set of exemption or registration strategies to meet the cooperative’s goals.

Regulation A

This offering strategy is used for public multi-state offerings of up to $75 million and permits accredited and non-accredited investors nationwide to participate. Regulation A is more onerous than other strategies as it requires significant disclosures and ongoing financial reporting.

State specific direct public offerings

Various strategies allow for issuers to conduct single state (intrastate) or multi-state offerings, or utilize state crowdfund, nonprofit, and cooperative exemptions.


Resources

For further information, see:

Regulation Crowdfunding Overview

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Comparison of Direct Public Offering and Crowdfunding Strategies

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Regulation A+ Overview

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