Raising capital is difficult for all business owners, everyone has a story about their struggles. To raise capital today, you are getting some form of a loan (debt). There are many loan variations being offered to you, but not a single marketplace to sell your equity (shares) for capital. That just changed with Halagard's Connect-In, we offer you a marketplace to sell equity (shares) to investors. Just like the big companies.
Lets compare the cost for a company considering Debt or Equity to raise capital. Basically debt decreases your cash flow but maintains to ownership % and Equity maintains your cash flow but lowers your ownership %. There are + and - for both options.
Low Fees with Halagard
1) Our goal is to leave cash in your business
2) Halagard has two fees:
a) cash fee that varies from $25K to $100K fee based upon the size of the business.
b) equity fee, a % of your equity instead of up front cash or a portion of your capital raise -
3) You never pay another fee to raise capital via equity, try asking your banker for the same terms
4) You can raise capital on your schedule, even when debt markets are restricted
How do we keep fees low?
1) We are leveraging 3 primary tools:
a) vertical integration, combines all of the middlemen services into a single company
b) technology, increases speed and reduces cost
c) private marketplace, reduced regulatory cost
Our Capital Raise Process
In a Nutshell
1) We underwrite your business and give you a score
2) Via our Connect-In Deal Maker, we create your offering documents and begin to connect you with Investors
3) We IPO your company and your equity becomes shares that investors buy, returning capital to you
4) Your shares trade in our Connect-In Market
5) You file annual reports to shareholders
Connect-In Deal Maker Details
Underwriting / Rating
- Business owners submit basic business and financial information. We run quick calculations to determine the best capital options
- Companies that move forward with Equity offerings submit detailed business and financial information.
- Halagard works with commercial aggregators of information (e.g. Experian, Dun & Bradstreet etc.) to gather information about each company
- All of the data is run through our models screening financial information for evidence of stability, growth potential, and other factors impacting the company’s value to investor on the Halagard platform.
- Our model determines a Halagard score for your company which is used to make a final determination if a company is presented to Investors.
- Halagard assists clients with the development of Offering documentation also known as a Private Placement Memorandums (PPM)
- We support the subsequent marketing of a client’s Digital IPO to interested investors.
- The intent of the PPM is to provide an accurate, detailed and compliant review of the company.
- The PPM includes a summary of offering terms, estimated use of proceeds, a securities description, company risk factors, a subscription agreement, an investor suitability questionnaire, plus more.
- Ahead of the security sale, Halagard assumes the role of issuer, designing a tradable financial instrument represented by digital securities and backed by the company equity
- The shares of the company are moved to digital asset repository.
Establishing Share/Bidding Price
- Halagard uses a unique bidding process allowing investors to determine the price per share for an IPO.
- Our approach provides a middle ground where all investors (large & small) have the ability to provide influence the share price. Our goal is that stocks don’t have a wild swing in either direction when they IPO.
Connect-In Market Details
Capital Raise/ IPO
- Halagard issues Regulation D 506(c) digital securities on behalf companies via an IPO
- Investors who are registered with Halagard may purchase these securities
Shares Become Tradable
- SEC rules require that securities sold via Regulation D 506(c) have a one-year lockup period. This means the shares can’t trade for one year.
- After one year, investors can trade their securities on Halagard’s Stock Market.
- Halagard requires all companies listed on our Stock Market file an annual report for their shareholders and provide news updates throughout the year. This ensures investors maintain access to salient company information.