Rialto Markets CEO and Co-Founder Shari Noonan has appeared in an interview with Crowdfund Insider, where she answered questions about Rialto Market’s Alterantive Trading System Platform, the current economic environment, and her expectations for the future of online capital formation.
As the cost of going public has risen, fewer companies have pursued the option of raising capital in an IPO and trading on an exchange. This cost of compliance is predicted to move even higher in the near future – especially with a new round of rules currently being considered by the Securities and Exchange Commission.
Meanwhile, there is an ocean of capital pursuing private firms – aiming to gain access to the next big thing before it is acquired or listed on an exchange. Some people view an IPO as more of an exit opportunity for big money instead of an investment in a fast-growing firm.
With the JOBS Act of 2021, three new securities exemptions were created that allowed online capital formation, or investment crowdfunding, to take place. Reg CF (up to $5 million) and Reg A+ (up to $75 million) allow firms to raise capital online, selling securities to both accredited and non-accredited investors.
Reg D 506c, an exemption without a funding limit, is only available for accredited investors, but frequently issuers will pair a Reg CF and Reg D 506c securities offering to combine both non-accredited and accredited individual investors.
A new generation of platforms has emerged in recent years to capitalize on the transformation of capital markets that leverage the internet and technology to match investors with firms in need of growth capital. Rialto Markets is one of these platforms, and it is managed by entrepreneurs with deep expertise in traditional securities markets.
Read the full article with Shari Noonan here.