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DealScene.com Takes Advantage of New General Solicitation Laws to Market Private Placement Offerings to Accredited Investors

17 May

 In the first six months since adoption, operating companies have filed to raise $6 billion using general solicitation

By Robert Hoskins

Rye, New Hampshire – Investor Access LLC announced today that it launched DealScene.com to connect investors with private companies raising capital.  The inaugural group of offerings can be viewed at www.dealscene.com.

DealScene.com Takes Advantage of New General Solicitation Laws to Market Private Placement Offerings to Accredited Investors

DealScene.com Takes Advantage of New General Solicitation Laws to Market Private Placement Offerings to Accredited Investors

Through adoption of the new Rule 506(c) exemption, the Securities and Exchange Commission recently lifted the decades-old ban on general solicitation to allow private companies raising capital to appeal directly to potential investors who are not part of their existing network of friends and family.  In the first six months since adoption, operating companies filed to raise $6 billion using general solicitation.  And the substantial majority of these companies are taking a “do it yourself” approach to capital raising.

Against this backdrop, Investor Access developed DealScene to provide a turnkey presentation and deal processing platform in a customizable online environment where companies offer their securities directly to accredited investors. DealScene gives companies investor screening tools, creates a secure environment for companies to share their stories with investors, establishes a second layer of access control to company documents, and provides a back-end process to support efficient closings. Investors receive due diligence information, review investment documents, and participate in discussion forums with managements and each other.

“With the introduction of general solicitation and the appeal of the internet to create connections to investors, more companies need online tools to handle their securities offerings,” said Brad McGee, cofounder of Investor Access, “DealScene is a robust and secure environment that can save companies time and development costs that would be necessary to recreate the capabilities and interactive experience DealScene offers.  This leaves companies free to focus on developing connections to investors.”

“The benefits of DealScene aren’t limited to companies.  Until now, access to investments in private companies relied on exclusive connections and private communications. But recent changes in the securities laws now permit open communications between investors and companies raising capital, creating a transparency previously absent in small company investing.  DealScene affords accredited investors an engaging experience where they can access private placements online and interact with each other and company managements,” Mr. McGee added.

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