Small-cap companies require capital to hire new employees, purchase equipment, develop new products and services and expand their operations.  And while they have multiple options when it comes to raising capital to finance their businesses, not all options are created equal.

That’s why in our third whitepaper with IR Magazine, on Small-cap company issues, we analyze the pros and cons of four common financing options:

  • Regulation D Offering
  • Follow-On Offering
  • Convertible Note Offering
  • Regulation A+ Offering

In analyzing these four options we consider two factors that affect the type of financing pursued:

  1. the type of investor the company is looking to attract (retail vs. institutional) (short-term holders vs. long-term holders)
  2. timing around when it needs the capital (immediately vs. ongoing or in the future)

We also discuss many pitfalls associated with small-cap financing and how to best navigate current needs with long-term goals.

You can download and read the complete whitepaper on IR Magazine: Part 3: The pros and cons of four financing options