|By Business Wire||
|April 17, 2014 10:30 AM EDT||
Dealflow.com announced the release of its latest white paper which provides an overview of the environment for online deal marketing. This quarterly white paper is entitled, “Regulators Rain on Parade as Rule 506(c) Enthusiasts Ready for Storm of Advertising.”
The white paper examines SEC fund and operating company capital raising data from the inception of the JOBS Act last September through the end of Q1.
Dealflow.com president Steven Dresner said, “We've heard that a lot of funds, including some very large ones, are talking to mainstream advertising and marketing agencies. The data also indicates that companies and funds are using the exemption to raise billions of dollars. We expect general solicitation will see even more action when the SEC’s proposed regulations are finalized.”
Dealflow.com reports that from Sept. 23, 2013 (when the SEC’s general solicitation rules went into effect) through the end of Q1, 679 Rule 506(c) Form D filings indicated that operating companies relied on the new exemption to raise almost $11 billion in new capital. Investment funds raised over $30 billion during the same period.
Over 80% of the offerings were for $5 million or less, with the largest number of deals in the $1 million to $5 million range. This data shows that both startups and growth businesses can benefit from the Rule 506(c) exemption, which allows them to raise more than the Title III crowdfunding limit -- and use general solicitation to source new investors in the process.
While the exemption served to raise capital for companies in all sectors, information technology companies were the biggest drivers of deal flow. Nearly 200 tech deals accounted for 27% of the funds raised, and companies ranged from sole proprietorship app developers to middle market corporations.
The other biggest contributors to deal flow were consumer discretionary (14%), financials (14%), real estate (11%), healthcare (10%) and energy (9%).
Dealflow.com’s white paper is free to accredited investors at http://dealflow.com/signup.html.
Dealflow.com is developing software for deal tracking, deal marketing, and transaction analysis. The company is building products that address the growing importance of the social web and the marketing of private placements and other financial transactions on the Internet.