Raising capital for a business can be a challenge. Business owners often look to debt or equity financing in order to raise capital to fund the desired venture. Typically, this capital is found via initial public offerings, business loans, venture capital funding and private placements, which this article will address.

Private placements are offerings of securities which are not required to be registered with the U.S. Securities and Exchange Commission (SEC), the federal regulatory agency responsible for protecting investors and securities markets. Frequently used by smaller companies or startups, private placements enable these operations to raise debt or equity from a relatively small group of investors—typically high-net worth individuals or entities—while bypassing burdensome registration requirements.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]