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Cool idea for a board! $HITM?
I get some IPO emails, and was curious what ihub chats about and this is one of the boards I found.
One of the other boards mentioned getting into High Times Holdings pre-IPO or before it trades on an exchange...
Well, it was a Reg A filing 2 years ago, and apparently has investors from an orig $11/share, but it still hasn't made itself avail for exchange-trading and I have no idea what's going on w/ it.
Anyway, THANKS for so many informative posts on this board (up to this point)!
DreamFunded.com
What We Do: DreamFunded is a private tech stock market where employees in pre-IPO companies can sell their shares to investors. Why Are We Doing This: Lack of employee liquidity is a huge problem in Silicon Valley right now as the average time to IPO is on the rise. In 2000, the average time to IPO for Silicon Valley tech companies was 4-years. As of 2014, the average time to IPO is 11-years. This means that companies are taking much longer to go IPO than ever before and is preventing employees from cashing out on their equity shares until the company goes public. There is also a big demand from investors who are looking to acquire employee shares of companies like Uber and Airbnb. What We Are Changing: DreamFunded is a marketplace that allows shareholders to liquidate some or all of their shares without company approval. Upcoming law changes regarding the JOBS Act (Jumpstart Our Business Startups Act) and the RAISE Act (Reforming Access for Investments in Startup Enterprises Act) will have a massive impact on the equity crowdfunding landscape. Changes to the JOBS Act in 2016 will open up 97% of the U.S. Market by allowing ordinary American’s (aka: non-accredited investors) to invest in private companies for the first time in over 83 years. The RAISE Act, which will be signed into law in the next 60 days allows shareholders (employees and investors) to liquidate shares in private companies in as little as 90 days; instead of the previous 12-month holding time. As a result, this allows the DreamFunded Exchange to become the first mainstream private tech stock market. Media Attention: DreamFunded has been mentioned in 2 published books on angel investing as well as mainstream media outlets such as Forbes, Inc. Magazine, CNBC Squawk Box, TechCrunch, Entrepreneur Magazine, Fast Company, Fox News, ABC and more!
Is Bill Gates Right On Energy Investing?
Gates told the Financial Times, in essence, that investors who want to do something about climate change should stop making up lists of companies they do not want in their portfolios based on involvement in fossil fuel production or use. They should, instead, invest in disruptive technologies that will provide actual solutions to climate change.
Okay, easy advice for Bill Gates to give, because he and his fellow billionaires have the money and contacts to acquire interests in those disruptive technology companies before they go public. The rest of us don’t. We will, as consumers, pay for the new technologies that will make the original investors richer.
https://oilprice.com/Energy/Energy-General/Is-Bill-Gates-Right-On-Energy-Investing.html
....a little bit of knowledge shows that one can invest in pre-IPO companies
12 Rules for Investing in Someone Else's Business
http://www.venturechoice.com/articles/12_rules_for_inv.htm
Prime energy
Ahead of today's big global climate strike that is urging an "end to the age of fossil fuels,"
Amazon (NASDAQ:AMZN) placed an order for 100K electric delivery vehicles from Rivian.
Prototypes of the new vans are expected to take to the road next year, with the entire order
being deployed within five years. Current goals?
Amazon plans to convert its delivery fleet to 100% renewable energy by 2030 and
already runs 40% of its fleet on renewable energy.
seeking alpha
Rivian Announces $500 Million Investment from Ford; Partnership to Deliver All-New Ford Battery Electric Vehicle
https://www.bloomberg.com/press-releases/2019-04-24/rivian-announces-500-million-investment-from-ford-partnership-to-deliver-all-new-ford-battery-electric-vehicle
Invest in or sell pre IPO stock of Rivian Automotive - EquityZen
https://equityzen.com › trending › rivianautomotive
EquityZen lets you invest in or sell Rivian Automotive stock. Explore the platform and get started today.
.....some smell or find opportunity before others.....it appears Ford may be seeking to challenge Tesla
Backed by Wall Street leaders.
Run by Silicon Valley experts.
Our team's expertise lies at the intersection of finance, technology, and law. We're led by Y Combinator, Goldman Sachs, SecondMarket, Charles Schwab, and Pensco alumni, and backed by some of the best investors in the world.
Our mission is to bring liquidity to illiquid assets through technology.
https://forgeglobal.com/about
.....some will catch the trend early.....others will not
OVER 80 COMPANIES LISTED
https://forgeglobal.com/discover
The Forge platform includes news and fundraising information for trending unicorns.
https://forgeglobal.com/?utm_source=google&utm_medium=cpc&utm_campaign=1776453250&adgroupid=70576199178&utm_term=forge%20global&utm_content=343197012138&gclid=EAIaIQobChMIhfPs9p3U5AIVwcDICh1LmQUKEAAYASAAEgIC0fD_BwE
This Peter Thiel-Backed Startup's New $1 Billion Fund Will Let Your Employees Cash Out Before an IPO
Forge Global enables startup workers to sell their stock on a private exchange.
Forge, which was founded in 2014 under the name Equidate, is not the only company to facilitate such deals; competitors include SharesPost, EquityZen, and 2010 Inc. 5000 honoree SecondMarket (which has since merged with the NASDAQ Private Market). These types of exchanges garnered attention in 2015 when the U.S. Securities and Exchange Commission began an investigation into possible violations of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
https://www.inc.com/cameron-albert-deitch/peter-thiel-forge-global-bnp-paribas-employee-pre-ipo-stock-sales.html
As of January 1st, There Are 46 FINRA Approved Reg CF Crowdfunding Portals
There are three different crowdfunding exemptions, including Reg CF, in the US that enable online capital formation; Reg A+ (up to $50 million) and Reg D 506c (unlimited funding but accredited investors only) that provide several options for firms to raise money without becoming a reporting company (IE publicly listed).
Most of the funding to date has been dominated by just a few of the platforms: Wefunder, StartEngine, SeedInvest, NextSeed, and Republic.
Basic requests such as an increase to the funding cap (up to $20 million), removal on restrictions for accredited investors (everyone does a workaround now), allowing a special purpose vehicle (SPV), are frequently requested. There are others.
https://www.crowdfundinsider.com/2019/01/142996-as-of-january-1st-there-are-46-finra-approved-reg-cf-crowdfunding-portals/
....worthy pdf by mofo
https://media2.mofo.com/documents/151118exemptofferingalternativeschart.pdf
*********
....Several things:
Rule 506(b): No general solicitation/general advertising....unlimited # of accredited investors and 35 non-accredited "Sophisticated Investors"
Rule 506(c): General solicitation permitted; If all purchasers are accreditied
Regulation Crowdfunding: Up to 1M in a 12 month period...Offering must be made through a platform
***********************
Accredited investors can be individuals with high net worth or insurance companies, banks, brokers
or trusts. Accredited investors are also known as registered investors.
Rule 504 includes very few guidelines regarding who can participate, which makes Rule 504 offerings useful for early stage startups raising seed capital.
Under Rule 504 of Regulation D, any company other than a “blank check” company can sell up to $1,000,000 of restricted securities in a given year to investors without filing the disclosures and reports otherwise required by the Securities Exchange Act of 1934. This amount is cumulative, and it includes any securities sold under other exemptions in the cumulation.
Unlike other Reg D exemptions, Rule 504 does not regulate the identity of the investors to whom the securities are syndicated -- i.e., both accredited and non-accredited investors may participate so long as the value of securities syndicated remains under the $1 million cap during the 12-month period. It’s important to note, however, that Rule 504 does not exempt companies from additional registration requirements that may be apply pursuant to the applicable state blue sky laws.
Generally, Reg D offerings are not permitted to include general solicitation; however, under Rule 504, general solicitation is allowed under three circumstances:
1.) The offering is registered in the state where the investor lives;
2.) The company has registered the offering in another state and provides all investors with the disclosure documents relevant to that registration; and
3.) All purchasers are accredited investors as defined in Rule 501.
https://www.priorilegal.com/securities/regulation-d/sec-rule-504
....seems good policy is to understate and over deliver
I do like the growing trend of services coming online adding liquidity
to the market.
....sniffing out new money before the ink had a chance to dry ;)
Thank you for input. I hope others feel that way and join in too.
There is more liquidity for private stock being brought online.
After seeing Morgan Stanley take action, I think others will follow and this may indicate the next playing field of action for those that want early opportunities.....before they become an Amazon.
Morgan Stanley announced an agreement to acquire Solium in February 2019 for $900 million
https://en.wikipedia.org/wiki/Solium
Regards
Sunny:>)))
Chessmite,
This forum has been needed for a some time and long over due.
Regards
Sunny:>)))
7 Socially Responsible Investment Platforms That Help You Invest In Both Purpose & Profit
https://www.thegoodtrade.com/features/socially-responsible-investing-platforms
....nice way to target investment when you don't have the time
Dumb Money: Investing in Pre-IPO companies (9,666 views)
Any with direct knowledge of pre-IPO market or i-box experience are encouraged to apply for a mod position.
More liquidity for Private or pre-IPO company stock seems to be a growing trend.
....also if any of you know of companies currently in a pre-IPO process, please share.
Thxs
Know the risk(s):
The Disappearing Form D
One mandated component of taking advantage of these registration exemptions is that the startup needs to file a Form D with the SEC. The Form D is free to file and relatively simple, requiring basic information such as the amount of capital fundraised and who the investors were in the round. It’s required to be filed 15 days after the first sale of securities, and, conveniently, the form preempts most state securities laws so that startups don’t have to file in state jurisdictions.
There are theoretically large penalties for failing to file — a company could open itself to investor lawsuits, and there are various financial felonies available that could be applied, as well.
But that’s legal theory, and the practicalities are that almost nothing bad happens to startups that fail to file a Form D. American courts, along with the SEC, have upheld that a startup does not lose its covered security exemption by failing to file the form.
https://techcrunch.com/2018/11/07/the-disappearing-form-d/
....also has a company perspective for hesistation
-----------------------------------
Worthy Read: SEC Expands ‘Regulation A’ Eligibility to Reporting Companies
https://www.jdsupra.com/legalnews/sec-expands-regulation-a-eligibility-to-40667/
SEC Clears Blockstack to Hold First Regulated Token Offering
Development could give young cryptocurrency businesses a new fundraising template
By Paul Vigna
Updated July 10, 2019 11:28 pm ET
The Securities and Exchange Commission on Wednesday cleared blockchain startup Blockstack to sell bitcoin-like digital tokens, a first-of-its-kind offering that could give young cryptocurrency businesses a new fundraising template.
The SEC approved the $28 million offering under Regulation A+...The company plans to begin selling tokens...through a website created for the offering.
https://www.wsj.com/articles/sec-clears-blockstack-to-hold-first-regulated-token-offering-11562794848
I think the market will see more fund raising using Blockchain; and with more liquidity via platforms trading private company shares, even more companies will opt in.
OPEN FINANCE NETWORK
Tokenization 101
The First Tokenized Hedge Fund To Trade On An ATS Is Now Available
OFN can list securities under Reg D, Reg A+, Reg CF, and Reg S exemptions. The platform has partnered with Harbor, Securitize, and Polymath— all of which assist in the tokenization of regulated securities.
Through blockchain-based platforms such as OFN, registered users can trade digital assets 24/7, 365 days a year. These conditions bring a stark difference to the trading atmosphere of traditional financial securities, where Wall Street, for example, operates only Monday – Friday, 9:30am – 4:00pm EST, and closes on nine federal holidays.
https://thetokenist.io/the-first-tokenized-hedge-fund-to-trade-on-an-ats-is-now-available/
Reg D/Reg A
Rule 504 of Regulation D
Rule 504 of Regulation D provides an exemption from the registration requirements of the federal securities laws for some companies when they offer and sell up to $5,000,000 of their securities in any 12-month period. Except in limited circumstances, purchasers of securities offered pursuant to Rule 504 receive "restricted" securities, meaning that the securities cannot be sold for at least six months or a year without registering them.
https://www.sec.gov/fast-answers/answers-rule504.html
Rule 506 of Regulation D
https://www.sec.gov/fast-answers/answers-rule506htm.html
The JOBS Act of 2012 created and revised various methods for small and emerging companies to raise capital. Regulation A (Reg A), just one of several exemptions companies can take from registering their securities with the SEC, was completely overhauled. The updated Reg A, sometimes called “Reg A+,” was split into two tiers and allowed for significantly higher raises (up to $20 million with Tier 1 and up to $50 million with Tier 2) and more flexibility around how and to whom securities can be marketed.
Reg A falls into a middle ground between private capital raise options like Regulation D, and public options like an IPO, but presents its own unique benefits to issuers.
Regulation A vs Regulation D 506 b & 506 c
Two major benefits to Reg D over Reg A are the ability to raise capital without a maximum limitation and the eligibility of SEC-registered companies to participate in the exemption. Reg A is limited to U.S. and Canadian companies that have not previously registered with the SEC. Although, that may be changing soon.
But the primary difference between Regulation A and private offerings under Regulation D is the eligibility of non-accredited investors. While 506 b does allow for up to 35 non-accredited investors in an offering, it is forbidden to market those securities online to potential investors. 506 c, does not allow unaccredited investors, but can be marketed online via the “general solicitation” rule, bringing it more in line with Reg A. Regulation A is marketable to all investors, regardless of channel.
The Difference Between Regulation A and Other Capital Raise Options
Regulation A vs Crowdfunding (Regulation CF)
It is a common misconception that because Reg A is marketable to any and all investors, it is crowdfunding. However, there are some significant differences between Reg A and true crowdfunding under Regulation CF. Because of the lower capital raise limit, companies utilizing Reg CF tend to have lower valuations and be in earlier developmental phases. Reg A is for more established companies looking to use the capital for growth. Regulation CF also requires that the offering be listed on a registered funding portal. Acceptance into these portals can be highly competitive, with some accepting as few as 1% of applicants. No such requirements exist for Reg A offerings, though some portals do exist to help with listing and subscription, as does the option to list on national stock exchanges such as OTC, NASDAQ, and NYSE.
Regulation A vs IPO
Though Reg A is an exemption from federal registration requirements like private capital raise exemptions Regulation D and CF, Reg A actually has more in common with a traditional IPO. Because it is open to all investors and because in some cases securities can even be resold or traded, Reg A offerings are considered public offerings.
A traditional IPO is designed for large companies with the capital needed to cover the legal and accounting costs associated with going public. Reg A opens up the door for smaller companies to do the same, including the ability to list Tier 2 offerings on securities exchanges like NASDAQ or NYSE or even OTC. For this reason, a Tier 2 offering is sometimes called a “Mini-IPO.”
Similar to an IPO, a Reg A offering can act as a liquidity event for earlier stage investors. This “secondary sales” process allows for up to 30 percent of the securities sold during a raise to come from current security holders.
Unique aspects of a Reg A deal:
No required minimum capital raise goal (unless listing on NASDAQ or NYSE)
Shorter document preparation time
Lower legal and filing fees
Total issuer process can take up to 20 weeks
Listing on Stock Exchanges
Not all Reg A issuers list their offerings on exchanges, but for those that have sufficient resources to accommodate the extra costs and administrative burden, it can serve as an effective means to gain more market exposure.
Generally, Reg A offerings advance through the “regulatory pipeline” faster than standard IPOs. The SEC has estimated that Reg A deals historically take an average of 78 days to be approved.
This is an advantage as traditional IPOs may take 90 to 180 days to be approved and can carry significant costs. Listing with Reg A can result in a shortened timeline for Reg A offerings, as well as lower upfront costs and legal fees. However that is not to say that listing through Reg A is inexpensive. To be listed on stock exchanges, additional SEC reporting requirements, such as registering as an Exchange Act reporting company, must be complied with, which may result in increased costs.
Many small or emerging businesses involved in Reg A offerings have successfully raised funds without listing on any major stock exchanges, keeping costs low. But, the lack of a trading market will likely increase the difficulty for current shareholders of these companies to sell their shares in the future. Listing on an exchange may help attract investors that are looking for a more liquid investment than is offered by non-traded securities.
https://www.wealthforge.com/insights/the-difference-between-regulation-a-and-other-capital-raise-options
First let me say Welcome.
This forum is for educational purposes and to share pre-IPO opportunities
1.) to share information regarding the law/SEC regulations governing pro-IPO companies
2.) to share information about companies offering opportunities under these Laws/Regulations
3.) to share our experiences and impressions of said companies
I noticed new sites like: Sharespost.com, equityzen.com, Morgan Stanley's Shareworks, (acquired Solium's Capshare; I presume to get into this market). These sites help provide liquidity to move unrestricted holdings.
The one IPO site I've seen had 7,000 subscribers; hence, I think the pre-IPO market segment is trending up and has potential for trading.
***The information provided here pro/con is for educational purpose and
to inform only.
Any action taken is of your own accord, but we welcome your discussion
of it and the results.
All Data leads to a better understanding of this segment of the
market.
Thank you for sharing.
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