BREAKING NEWS
HOUSTON, TX and LONDON, UK — Entoro Capital, LLC (Entoro Capital), a leading investment bank and advisory firm based in Houston, and Archax Ltd (Archax), a pioneering digital securities exchange, broker and custodian based in London, announced today a strategic alliance aimed at enhancing the digital securities and investment landscape. This partnership will leverage both firms' strengths to provide unparalleled services and opportunities in global financial markets.
Under the agreement, both Entoro Capital and Archax will facilitate projects and collaborations that lead to significant financial transactions and investment opportunities, for the benefit of their respective clients. This alliance is designed to capitalize on each firm’s expertise and market presence, thereby expanding their market reach. Key areas of focus include leveraging the parties’ leadership in the areas of Tokenisation, Digital Real-World Assets (RWAs) and Securities, and Voluntary Carbon. Archax will also work closely with Capturiant, an Entoro affiliate, the leading engineered solutions environmental asset authenticator, registry, and exchange, by acting as custodian and strategic partner within the United Kingdom.
TIPS FOR SUCCESS
Tip of the Month: Ideal Timing for a Reg A Offering
At What Stage Should a Company (Issuer) Consider Raising Capital via a Reg A Offering?
Timing is crucial when considering a Regulation A (Reg A) offering to raise capital. Here are some key points to help determine the ideal stage for your company to pursue this route:
- Solid Business Foundation:
- Established Business Model: Ensure your business model is well-developed and proven. Investors will look for a clear path to profitability.
- Operational History: While startups can use Reg A, having a few years of operational history can significantly bolster investor confidence.
- Financial Readiness:
- Audited Financial Statements: For Tier 2 offerings, audited financial statements are mandatory. Having these ready indicates financial health and transparency.
- Revenue Generation: Companies that are already generating revenue (or have clear projections) are more attractive to investors.
- Market Validation:
- Customer Base: A growing and loyal customer base demonstrates market demand and acceptance of your product or service.
- Positive Growth Metrics: Metrics such as increasing sales, expanding user base, or other KPIs are positive indicators.
- Strategic Growth Plans:
- Clear Use of Funds: Have a well-defined plan for how the raised capital will be used, whether for scaling operations, product development, market expansion, or other strategic initiatives.
- Scalability Potential: Ensure your business has the potential to scale, as investors are looking for high growth opportunities.
- Regulatory Preparedness:
- Compliance Infrastructure: Establish a compliance infrastructure to meet ongoing reporting requirements, especially for Tier 2 offerings.
- Legal and Advisory Team: Engage experienced legal and financial advisors early to navigate the regulatory landscape effectively.
- Brand and Market Positioning:
- Market Position: A strong market position and brand recognition can attract more investors. Ensure your company is well-positioned within its industry.
- Marketing Strategy: Have a robust marketing and investor outreach strategy to effectively communicate your value proposition.
Practical Insights:
- Early Engagement: Start planning and preparing for a Reg A offering well in advance. Engage with broker dealers and legal counsel early in the process.
- Investor Education: Educate potential investors about Reg A offerings, as many might be more familiar with traditional fundraising methods.
By ensuring your company is at the right stage—financially, operationally, and strategically—you can optimize the success of your Reg A offering and attract the right investors to support your growth ambitions.
FEATURED DEAL
Avvenire Electric Vehicles Corp. is on a mission to become a global leader in the Electric Vehicle (EV) market by developing the next generation of cutting-edge, cost-effective and environmentally-sustainable lineup of holistic transportation solutions for everyday use.
Key Highlights:
- Current pre-order book exceeds USD $1.1 Billion for Avvenire products
- Established dealer network with over 200 dealers ready to take new Avvenire Products and over 300 new dealer requests, for a total of over 500 potential dealers
- Management team includes pioneers in the LEV industry in Canada leaning on decades of experience
- Strong advisory board to achieve the hypergrowth expected
- Manufacturing plans to add 270,000 square-foot plant in place to add to production and distribution from present 75,000 square-foot location
Avvenire is raising $75 million through Regulation A+, for more information on the offering view the offering circular here.
MARKET YOUR OFFERING
American Stories is a fan-focused, self-distributing, independent TV production company that specializes in capturing the essence of American culture through uplifting, inspiring unscripted shows.
Our goal is to shed light on the stories, lifestyles, and traditions that make up the fabric of this great nation. With support from fans and investors, we are on a mission to bring authentic, captivating stories from the American heartland and beyond to screens everywhere. Join us in our journey to preserve the spirit of America and invest in the future of independent TV production.
FEATURED ARTICLE
The Impact of Sustainable Investing on Private Equity
The landscape of private equity (PE) is undergoing a significant transformation as sustainability factors increasingly influence investment decisions and strategies. This shift is driven by a combination of investor demand, regulatory pressures, risk management benefits, and value creation opportunities.
Sustainability factors are becoming a priority for limited partners (LPs) in the private equity space. A recent study by McKinsey & Company reveals that 83% of LPs consider sustainability factors when making investment decisions. This reflects a broader trend where investors prioritize sustainable and ethical considerations alongside financial returns. Investors are more aware of the long-term benefits of sustainable and ethical investments. The increasing integration of sustainability factors is not just a trend but a fundamental shift in investment philosophy. LPs are urging PE firms to incorporate sustainability criteria into their investment processes, reflecting a broader societal move towards sustainability.
REG A+ FAQs
Can I Raise Capital for a Private Equity Fund using Reg A+?
No. A PE Fund or Private Equity Fund is not allowed to raise capital using Regulation A+ because non-accredited investors are eligible to invest in Regulation A+ offerings. Private funds can only take investments from investors that are accredited, and for certain private funds investors must clear additional thresholds naming them Qualified Investors. Therefore, the majority of PE Funds raise capital through Regulation D or Regulation S offerings.
How does Regulation A+ provide liquidity to investors and founders and long term investors?
For the investor, the degree of actual liquidity depends on the Issuer company's Reg A+ offering. If they list on the NASDAQ or NYSE then liquidity can be excellent. If they list on the OTCQB or the OTCQX, then the liquidity can be good to very good.
When an Issuer company does not list on the above exchanges, then liquidity is limited to the specialized Reg A+ aftermarket exchanges, and broker-dealers that support Reg A+ share trading in the aftermarket. These exchanges are small and offer limited liquidity at present; they are growing to fill the need.
The Issuer company may choose to offer direct liquidity to their investors by defining what valuation method they will use and what other restrictions will apply in their Offering Circular. This type of liquidity is regulated.
WATCH NOW
See why so many Issuers trust us to facilitate a successful offering.
Watch Video
CONSIDERING A REG A+ OFFERING?
Entoro Capital is a FINRA-registered Broker-Dealer in all 50 states, Puerto Rico, and the District of Columbia. The top choice for a Reg A+ broker-dealer and will answer all your questions. We support Issuers through the entire Reg A+ process from pre-filing preparation, to SEC review, marketing selection, and completion of the offering. Call Entoro today and let our team show you how to Reg A+ the right way.
ENTORO REG A+ CONTACTS
Sean Levine Abdissa Gemechu
Managing Director Director
Entoro Capital, LLC Entoro Capital, LLC
D: +1 917.715.1489 O: +1 713.823.2900
E: slevine@entoro.com E: agemechu@entoro.com
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