Your company is growing. Now you are ready to start raising serious capital and you here the public fund raising markets. Here are the basics of your S-1 filing. Know the lingo before you hire a consultant. Because companies must adhere strictly to SEC regulations, initial prospectuses are similar in their organization. Each S-1 generally consists of the following sections:
Many entrepreneurs and executives want to move forward with the process of going public merely for the ability to raise capital through the sale of stock. They usually don’t think of the strategies necessary to keep the momentum going such as how much equity to give up initially, how much equity to sell ongoing, how to capitalize off of the use of the securities as collateral for loans and lines of credit and so on.
Take Your Company Public: A Must Read Before You Do Anything! As a consultant in the business of structuring companies, setting up strategic alliances for clients, writing business plans and PPM’s and taking companies public on the OTCBB, I must admit I’ve seen my share of scams and swindling of uninformed clients. One sad issue that permeates the industry is clients who believe that their only option is to give up substantial equity while paying hefty fees to consultants who take your company public.