Five Categories of Capital Raising

1. Direct Public Offerings (DPOs)

A DPO is a way for a company to “go public” without the intermediaries that orchestrate an IPO. A company completes required offering documents and securities filings and then can sell shares directly to the public – the company’s customers and community. Please see Success Stories.

2. Private Offerings

The general rule is that you may not offer investments to the public without registering the offering with the state and federal securities regulators. However, if you offer the investment without public advertising, the offering may qualify for an exemption from the registration requirements. Cutting Edge Capital can help you structure your private offering to allow maximum flexibility within the law.

3. Cooperatives

Businesses that organize themselves as cooperatives of consumers, producers, or workers have a huge fundraising advantage – members put up capital to join and receive financial and other benefits in return. Member capital can be contributed in installments, making it possible for people of all income levels to invest in co-ops. Most states exempt co-op memberships from the securities registration requirements which means legal costs for raising capital for a co-op are relatively low.

4. Fan-based Funding

Many entrepreneurs have found that they don’t need to borrow funds or sell equity in their companies – if they have a solid fan base, there are many ways to tap into that resource for funds. Strategies in this category include pre-selling, customer financing, crowdfunding, memberships, donations, and sponsorships.

5. Grants and Public-Private Partnerships

Businesses are finding more and more creative ways to partner with nonprofits and governments to raise funds. Cutting Edge Capital staff have extensive experience with these kinds of partnerships and can help its clients structure mutually beneficial relationships to fund their businesses while contributing to the greater good.

Cutting Edge Capital’s work on our structure and finance strategy was wonderfully responsive and outstandingly well tailored to our needs and objectives.

Steve Piersanti

President, Berrett-Koehler Publishers

General Inquiry

Tell us about how you would like to raise capital.

(510) 834-4530

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