SOURCE: Venovate


March 26, 2015 11:59 ET

Venovate Marketplace Is SEC Reg A+ Ready to Help Companies Capitalize on Powerful New 'IPO-Lite' Fundraising Rules

With New SEC Regulation A+ Rules Poised to Go Into Effect, Issuers Can Prepare to Raise up to $50 Million on Venovate Marketplace With Compliance Assistance and Registration Support From CrowdCheck

SAN FRANCISCO, CA--(Marketwired - Mar 26, 2015) -  Venovate, the online brokerage platform for alternative investing, announced today that Venovate Marketplace has been configured to immediately begin onboarding issuers looking to raise capital under SEC Regulation A+, and assist with those fundraises as soon as the new ruling takes effect.

On March 25, 2015, the SEC voted unanimously to introduce new regulations that will enable small and medium-sized private companies to raise larger amounts of money from investors before going public. These changes to the little-used SEC Regulation A will create an attractive new option for mature, private companies that want to provide liquidity for early investors and/or raise capital without going public. The new Regulation A+ rules are slated to go into effect 60 days from the date the new rules are published in the Federal Register.

Inspired by the highly anticipated new SEC rules, Venovate is expanding its partnership with the investment due-diligence and disclosure experts at CrowdCheck to assure full compliance with the new regulations, as well as support issuers to leverage the new options to raise capital.

Through its platform, Venovate provides the accessibility, efficiency, and transparency that has been lacking in the private securities market. Venovate provides easy to use tools for issuers to raise capital through an online experience with the support of FINRA registered investment professionals. For investors, Venovate streamlines the due diligence and investing process, providing the necessary information to support an investment decision in a standardized way.

"With the new Regulation A+, the SEC is creating an intermediate capital formation step on the road to going public. It's a new kind of 'IPO-Lite' that will be beneficial for companies and investors alike," commented Michael Raneri, founder and CEO of Venovate. "With more companies delaying IPOs because of the cost and regulatory burden, this will be a welcome chance to find new meaningful sources of capital, as well as liquidity. And for investors, the new Regulation A+ will offer a valuable opportunity to gain access to exciting new companies at an earlier stage in their growth. At Venovate we have been eagerly anticipating this regulatory development, and, in cooperation with our partner CrowdCheck, we're fully prepared to welcome both issuers and investors interested in Regulation A+ offerings to Venovate Marketplace."

In partnership with CrowdCheck (and its affiliated law firm), Venovate will support issuers to develop compliant offering materials to determine investor interest in the issuer's fundraise, before the issuer commits to the time and expense of making a full Regulation A+ filing. If there is sufficient investor interest, Venovate and CrowdCheck will work with the issuer to develop all required investment materials and appropriate disclosures to be presented on Venovate Marketplace -- compliant with the SEC's new Regulation A+ rules.

"Compliance with Regulation A+ requires deep expertise in disclosure and securities law, and the liabilities for issuers and platforms can be significant if the paperwork isn't done right," said Sara Hanks, CEO of CrowdCheck. "Emerging companies have a real need for a compliance service that is efficient and cost-effective, and that's what CrowdCheck is providing."

"Venovate is delighted to extend its relationship with CrowdCheck," commented Raneri. "We've already partnered with CrowdCheck on the due diligence for Rule 506(b) and 506(c) offerings under SEC Regulation D on our platform. With the help of CrowdCheck, Venovate members can be confident that Regulation A+ offerings are managed efficiently and in a compliant manner, to support a successful offering."

More About the New SEC Regulation A+

The new Regulation A+ creates a two-tiered system. For Tier 1, the rules will be essentially the same as the current Regulation A, although the Former $5 million offering limit has been raised to $20 million. Additionally, Tier 2 will increase the limit on the capital that can be raised to $50 million, with current shareholders allowed to offer up to $15 million of that $50 million total. This new option will come with some new reporting requirements. Companies will have to provide audited financials with their offering circular, and will have to generate annual and semi-annual financial reports. Investors who are not accredited investors will also be limited to investing up to 10% of their net worth or their annual income. Most important, for Tier 2 the new Regulation A+ will provide an SEC review of the offering and will no longer require the issuer to register with every state. Also, Regulation A+ offerings are accessible to both accredited and non-accredited investors, significantly increasing a fundraiser's reach compared to Regulation D private offerings.

About Venovate

Privately offered security transactions are conducted by Venovate Marketplace, Inc. member FINRA and SIPC, an SEC registered Alternative Trading System and a wholly-owned subsidiary of Venovate Holdings, Inc. Venovate Marketplace, Inc. provides smarter alternative investments to institutions, accredited individuals, and their advisors via an online experience supported by financial services professionals.

NOTE: Venovate Holdings provides self-directed, accredited investors with investment opportunities through its FINRA registered subsidiaries, and does not make recommendations or offer investment, financial, legal or tax advice. The content of this press release is provided for educational and informational purposes only, and does not constitute a recommendation to enter in any securities transactions or to engage in any of the investment strategies presented herein.

Private security investments have inherent risks. An investor should understand these and additional risks before investing.

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