Pre-Offering Structuring: Most entrepreneurs or Small Business owners are not experts in raising capital and thus typically have poorly structured transactions. An improper or non-existent transaction structure will portray a very unprofessional image of you to potential investors. Structuring includes setting share price and number of shares or note amount and length of term, which Reg D program to use, minimum and maximum offering amounts, and minimum amount of investment per investor.
Document Creation: Preparing an offering involves the creation of the related Regulation D offering documents to include:
- Private Placement Memorandum
- Subscription Agreement
- Promissory Note
- Form D SEC Filing
Marketing: The offering is now ready for marketing to investors. You will need the capability to implement a diversified marketing campaign that involves brokerages, Internet Marketing, and Direct Investor Marketing strategies. A Regulation D Offering will solve all of the technical issues you will face when dealing with investors (investment structure, investment documentation, etc.), these are issues that should be addressed before you interact with investors. Not addressing them ahead of time presents a very unprofessional image of you to the investor.
The Regulation D Programs can be used by domestic as well as foreign corporations. While the programs can be used by any corporation type, the preferred structure is a stock "C" Corporation or Limited Liability Corporation "LLC".