
Various factors, including how quickly you’re seeking to raise capital, can play a part in deciding which options you may have or how to raise capital.
The amount and character of potential investors you are aiming for also play a role in how you can successfully raise the capital your business needs.

How can you maximize your capital-raising strategy to facilitate easier and more successful subsequent capital raising and future strategic transactions?
Seamless and effective strategies can be set up now to ensure that future capital-raising efforts, mergers, and sales are set up for success.

Ways to raise capital
DEBT-BASED
Financing
Borrowing money from a lender or individual.
EQUITY-BASED
Financing
Selling shares of company ownership in the form of common stocks or preferred stocks.
HYBRID
SECURITIES
A combination of debt and equity characteristics. Hybrid securities provide investors with a fixed or floating rate of return as interest or dividends. Tend to be more complicated.
REVENUE
SHARE
A capital investment that is repaid through a percentage of revenues from the company’s operations.
PUBLIC Vs. PRIVATE OFFERING:
Private Offering
Selling securities of a company to a small number of known investors:
Institutional Investors, Accredited Investors, Friends & Family
- Regulations: Light
-
Regulation D (SEC)
-
Rule 506 B or C (SEC)
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Regulation S (Overseas)
-
- Time to Completion: 5 to 30 Days
- Cost: Low to Medium Legal Costs
- Challenges:
-
Keeping paperwork drafting very organized
-
State & federal-level compliance
-

Public Offering
Selling securities of a company to the public:
Institutional Investors, Retail Investors
- Regulations: Heavy
-
Full Registered Offering (SEC)
-
Regulation A (SEC)
-
Rule 147 (SEC)
-
Regulation Crowdfunding (CF)
-
- Time to Completion: At least 4 Months
- Cost: Medium to High Legal Costs ($50,000+)
- Challenges:
-
Keeping paperwork drafting very organized
-
State & Federal-level compliance
-
Reaching a crowd
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Planning: communications, marketing, and events
-

Raise capital with confidence.
At Founders Legal®, our specialized Securities Law team has the strategic insight and industry experience to guide you through a successful capital-raising process with confidence.
Our Securities Services have helped thousands of businesses accelerate their growth and take their business to new heights.