Miro Zecevic

  - An angel investor is typically an individual or a high worth individual investor who provides funding or financial support for start-ups in lieu of a stake in ownership in the company. - They are usually among the family or relatives of the entrepreneur. - Apart from investing money, angel investors share their knowledge at the critical stages. Advantages: - Financing from angel investment is much less risky than taking loans. - Capital needs are met by angels. - Generate large number of jobs. - Reinvests the return. - Angels bring portfolio expertise such as business acumen, vertical expertise, director service etc. - Angel-funded firms are likely to survive at least four years. - Angels do not demand high monthly fees. Disadvantages: - There is a loss of complete control as an owner. - It is quite hard to find a suitable angel investor. - They provides less structural support than an investing company. - Angels rarely make follow on the investments. - There is a possibility o...

What are pros and cons of going public? Many companies will consider going public as a next step in their development. While going public offer number of benefits to a business it can be tricky if you haven't carefully weighted advantages and disadvantages before you started process of going public. Going public is probably the most crucial decision for a company because it will not only affect your financing but also other aspects of your business. Companies that want to go public mostly engage in initial public offering (IPO) process but there are other alternatives for company to go public and trade their share on exchange  e.g. reverse takeover. Going public offers many benefits to the company but there are also some drawbacks so company's management has to take into consideration many factor before making decision to go public. Pros of going public: There are many reasons why companies go public ant their reasons vary just like the benefits and challenges th...

Being a public company - what it means? In simple term public company is company whose shares are publicly traded on one or more stock exchanges or over the counter market (OTC) and that ownership is dispersed among the many investors. History of public market dates back in early modern period when Dutch helped lay foundation of modern financial system. Publicly traded companies usually have many investors while privately held companies had fewer, but company with big number of investor doesn't have to be public company. Securities and Exchange Commission (SEC) states that every company with more than 500 investors and more than $10 million in assets must register with SEC and adhere to its regulations. Most public companies where private and after that they meet requirements to become publicly traded company mainly because it brings many advantages. Public companies are able to raise capital through the sale of stock in a way shares become company's currency...

What is an Initial Public Offering? When a private company first offers shares of its stock (ownership) for purchase to the general public, this is known as an initial public offering (IPO). Goals and Reasoning  There are a few main reasons why a private company will decide to make an IPO: - Raise expansion capital - Monetize the investments of early private investors. - Become a publicly traded company on a securities exchange - Gain credibility and prestige The Process When a company is ready to offer shares of its stock to the public, there are a few major steps involved: Step 1: Company hires an investment bank (underwriters). Step 2: The investment bank puts together a registration statement to be filled with the SEC. This document contains information about: - The offering - Financial statements - Management background - Any legal problems - Where the money is to be used - Insider holdings Step 3: The SEC then requires a cool...

Regulation A vs Other Capital Raise Options The JOBS Act of 2012 created and revised various methods for small and emerging companies to raise capital. The updated Reg A, sometimes called “Reg A+,” was split into two tiers and allowed for significantly higher raises (up to $20 million with Tier 1 and up to $50 million with Tier 2) and more flexibility around how and to whom securities can be marketed. Reg A falls into a middle ground between private capital raise options like Reg D, and public options like an Initial Public Offering, but presents its own unique benefits to issuers. Reg A vs Reg D 506 b & 506 c Two major benefits to Reg D over Reg A are the ability to raise capital without a maximum limitation and the eligibility of SEC-registered companies to participate in the exemption. But the primary difference between Regulation A and private offerings under Regulation D is the eligibility of non-accredited investors. While 506 b does allow for up...