Fundraising used to start with knowing the right people.
At Netcapital, it starts with the people you know.
Creating your offering
Generally speaking you will need:
- Profits & loss statements
- Balance sheet
- Cash flow statement
- Change in owner’s equity statement
- Business plan
- Funding history
- Articles of organization
- Certificate of formation
- Operating agreement
- Pitch deck
- Fundraising history
- Price per share for your offering
- Minimum and maximum raise amounts
- Board authorization
- Use of proceeds
What kind of due diligence does Netcapital do on my company?
For all 4(a)(6) offerings, Netcapital Funding Portal, Inc. performs the required background checks and reviews Form C. With regard to 506(c) offerings, Livingston Securities, Inc. performs the required background checks and reviews your Form D. We do not make investment recommendations of any kind, but make all of the diligence documents required for the SEC available to the public.
Developing a promotional strategy for your fundraise is critical for success. We require each company to complete a marketing review before listing on our platform While Netcapital cannot promote specific offerings, we can advise you about the structure or content of the your offering, including assisting you in preparing offering documentation and helping you think about how to leverage your own networks for success. Here’s an example of the type of assistance Netcapital provides to companies like yours:
- Develop and send a launch tweet, email, LinkedIn post, Facebook posts to our social media community
- Ability of your company to leverage our proprietary tools to take advantage of various social media networks
- Fundraising strategy coaching
- Access to our built in investor network
- Access to our investor dashboard to provide some information about investor behavior on our site
- Connect you with advisors to our company who are professional angels and who can help you tactically plan to close out your round.
Netcapital will submit all forms to the SEC on your behalf.
Issuers offering less than $107,000 are required to disclose total income, taxable income and total tax as reflected in the issuer’s federal income tax returns and certified by the principal executive officer. Issuers offering more than $107,000 but not more than $535,000 must have financial statements reviewed by a public accountant that is independent of the issuer. Issuers raising more than $535,000 but less than $5,000,000 must have financial statements reviewed by a public accountant, and if the issuer has previously sold securities in reliance on Regulation Crowdfunding, financial statements must be audited by a public accountant that is independent of the issuer.
If reviewed or audited financial statements are available to the issuer, the issuer must provide the reviewed or audited financial statements even if any lesser requirement would otherwise be available.
The issuer sets the share price and valuation for the offering. Netcapital cannot suggest how to structure the offering from a price and valuation perspective. We are acting only as an intermediary between the issuer and the investors.
The max should be the most you are willing to sell at the dollar price specified in your offering.
We recommend listing your offering somewhere between 60 and 90 days.