This entry is part 4 of 7 in the series Harvard Club Equity Finance Conference
Harvard Club Equity Finance Conference

Your company’s current status will determine which course of action to take when it comes to going public. I suggest an S1 registration statement over a reverse merger when the company is a startup or still in the developmental stage process (non-revenue producing). The reasons are as follows:

  1. Most startups need to conserve their finances for developing their company.
  2. The price differential between an S1 and a reverse merger are substantial. An S1 will cost between $50K and $150K - a reverse merger $700K to $1MM. These numbers exclude audit fees.
  3. It is difficult to raise capital for a startup company. By taking the S1 route a company can raise an initial small round of funding and gather the 40 plus shareholders it will need to qualify for trading status when it files its 15c2-11 with FINRA.
Series Navigation«Harvard Club Equity Conference – Part 3Harvard Club Equity Conference – Part 5»

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