Direct Public Offerings

There are 2 types of Investor Direct Offerings
Direct Public Offerings and Private Placements

Direct Public Offerings require state review. Your offering will be reviewed and must be deemed effective before you can market your offering.
Private Placements (PPM) or regulation D offerings filed within the rules 504, 505, or 506 require state filings with no review. In most states, you can send in your paperwork after your first sale – with no review of the offering or marketing materials.

DIRECT PUBLIC OFFERINGS

Direct Public Offerings are divided into categories based on how much money you intend to raise.

SCOR Filing (Small Corporate Offering Registration): For companies that are raising $1 million or less within 12 months
Regulation A filings, aka Reg A Offerings: For companies that are raising $5 million or less within 12 months
Registration by Qualifications, aka Rule 147 or Intra-State offering exemption: For companies that plan to raise an unlimited amount within 12 months from within the same state as their business

Highlights of Direct Public Offerings (DPOs)

Companies can advertise direct to the public without limits on the number of investors or the need for accredited investors
DPO’s allow companies to go public through a fast track, and inexpensive process that has significant benefits for the company and investor alike
Taking a company public with a DPO immediately boosts its attractiveness to investors, making it easier to sell the offering as well as allowing the entrepreneur to receive higher valuation and less dilution
The investor receives stock in a company that can be listed on an exchange, giving investors the ability to sell part or all of their stock as needed – providing liquidity and a flexible exit strategy