More than a simple spreadsheet, a cap table (short for capitalization table) records detailed data regarding the equity owned by shareholders. When it comes to raising capital, your cap table will help you make sound decisions regarding your offering. So, what exactly is cap table management?

A clear and well-managed cap table paints a detailed picture of exactly who owns what in the company. Whether a founder is looking to raise additional capital or offer incentives to employees, a correctly-managed cap table will show the exact breakdown of shares, digital securities, options, warrants, loans, SAFE, Debenture, etc. This information enables founders to understand how equity distribution is impacted by business decisions.

Proper cap table management ensures that all transactions are accounted for and that potential investors are easily able to see the equity structure during funding rounds. Founders are also able to better negotiate the terms of a deal when they have the entire pictur...more

The real estate market has seen a substantial uptick in value, with more and more people looking to invest in this asset class. However, the high barrier to entry – requiring significant capital – has traditionally limited participation to only those with deep pockets. But with tokenization and the blockchain technology that supports it, anyone can get in on the action.

What is Tokenization?

In simple terms, tokenization is the process of converting something of value – in this case, real estate – into digital tokens that can be bought and sold on a blockchain platform. This allows for fractional ownership of assets, which opens up investment opportunities to a much wider pool of people. Tokenization is a process that can facilitate investment in fractional portions of real property, thus lowering the barrier to entry for retail investors. By digitizing real estate ownership and using blockchain technology to track transactions, tokenization makes it easier and faster to buy and sell p...more

Technology has significantly impacted many different aspects of our lives, and the world of capital raising is no exception. With the help of technology, we can more efficiently raise capital and improve transparency and sustainability in the process. Here is a closer look at how technology is helping to improve transparency and sustainability in the world of capital raising and investment:

Improving Transparency

One of the biggest ways technology improves transparency in capital raising is by providing more information to investors. In the past, it was often difficult for investors to get a clear picture of where their money was going and how it was being used. However, thanks to technology, there are now a number of platforms and tools that provide investors with real-time updates and insights into how their money is being used. This increased transparency gives investors more confidence in the process and helps build trust between them and the companies they invest in.

Another way t...more

Oscar Jofre, the President and CEO of KoreConX, has long been a proponent of expanding access to capital for cannabis companies in the US and Canada. He recently spoke to StratCann about the current state of banking for these types of companies in both countries. Despite conversations within the US proposing changes to how banks handle working with cannabis companies, Oscar says: “Even with the SAFE Act, the bigger banks aren’t going to put it under their risk profile. They’re going to do the same thing our banks are doing in Canada. They’re not looking at it from the legal point of view anymore. They’re looking at it from the optics point of view. They’re big banks and don’t want to be seen doing business with cannabis.”

His thoughts are that smaller US banks could be a likely partners to both US and Canada-based cannabis companies. Still, a widespread banking reform within the US is unlikely to relieve much of the challenges Canadian cannabis companies currently face. Read the rest o...more

If you are an entrepreneur looking to raise funds, you may have heard of Regulation A+, often referred to simply as Reg A+. This alternative to traditional venture capital, private equity, or other funding sources allows companies to sell securities to the public without going through the lengthy and costly process of registering with the SEC. Since it was expanded in 2012 with the JOBS Act, Reg A+ continues to evolve, facilitating increased capital formation for companies within the private capital market.

What is Reg A+?

The goal of Reg A+ is to make it easier and less expensive for small businesses to access capital while still providing investors with the protection of an SEC-qualified offering. The offering is exempt from complete SEC registration, allowing companies to raise up to $75 million in capital, with certain restrictions and requirements. To qualify for this exemption, a company must file an offering statement (Form 1-A) with the SEC that includes all pertinent in...more

Risks of investing

Many of the Securities listed on our Platform are speculative and involve significant risk, including the risk that you could lose some or all of your money. We’ve described some of the factors that make these investments risky in four ways:

• First, because many of the opportunities on our Platform will be in the real estate sector, we’ll describe risks common to that industry.
• Second, because many of the opportunities on our Platform will be in startup or early-stage companies, we’ll describe risks common to those companies.
• Third, we’ll describe risks common to many of the companies on the Platform, not covered in the real estate or startup categories.
• Fourth, we’ll describe risks associated with particular kinds of securities (e.g., debt securities or equity securities).
• Fifth, when you review a particular investment opportunity, the Issuer will also provide a list of risks specific to that opportunity.
  The order in which these factors are discussed, either here on

Has RegA+ Killed the IPO?

Regulation A+ gives issuers the ability to raise $75 million in crowdfunding while remaining private. With RegA+ benefiting both companies and investors, does this mean the death of IPOs?

RegA+, part of the JOBS Act, allows companies to raise funds through the general public, not just accredited investors. With more and more IPOs delayed, unprecedented access to private capital is available to all organizations. With RegA+, anyone can invest in private companies, making it increasingly popular with companies seeking capital, primarily since they can raise a significant amount of funding.

The regulatory and monetary hurdles that come with entering an IPO in addition to RegA+ have led to delays in initial public offerings. Since the JOBS Act was passed in 2012, funding opportunities for private companies have improved, especially with the allowance of not-accredited investors opening up a previously untapped pool of prospective investors. Additionally, the secon...more