SDRA Venture Capital Services™
Services for Business Venture Organizers
SDRAVenture Capital Services™ are for business organizers who want to:
- Attract venture capital financing from SDRA™ investors with exempt offerings under SEC Regulation D
- Attract venture capital financing with offerings that are subject to state securities registration requirements
Heritage Design Law LLC does not provide state or federal securities registration services. We provide our SDRAVenture Capital Services™ in collaboration with securities counsel. These services are not available for ventures involving offerings subject to SEC registration requirements.
The SDRAVenture Capital Design Service™. Careful design of the specific ownership, governance and operating rules for a new venture is essential for compliance with the special tax and Department of Labor rules that apply. In collaboration with you, your accountant, your business or securities lawyer and/or your investment adviser we will prepare a written venture design for you and your advisers to implement. The end product of this service is the SDRAVenture Capital Design™ Report. (The SDRAVenture Capital Design Service™ is included in the SDRAVenture Private Placement Service™)
The SDRAVenture Private Placement Service™. In these difficult economic times capital for new business ventures can be hard to find. Many venture organizers are finding that offering securities for investment by SDRA investors gives them access to a substantially untapped capital source. Investors in general are less than enthusiastic about the risks of volatile markets. As a result organizers of new ventures to be offered under SEC Regulation D often consider tailoring their offerings to SDRA investors.
Offerings for SDRA investors can present a number of challenges:
- Preparing offering materials directed to SDRA investors requires expertise with the special tax and regulatory requirements that apply
- Each SDRA investor’s custodian may want to review the offering for compliance reasons, and the proposed investment may need to be cleared for each investor unless it is pre-accepted
- New SDRA investors may be unfamiliar with how to establish an account with a qualified custodian
- New SDRA investors may be unfamiliar with how to authorize and fund the investment
- SDRA investors may either look to the venture organizers for “coaching” with the paperwork or expect the venture organizer to establish the account and prepare the investment directives for them – at the organizer’s cost
Our SDRAVenture Private Placement Service™ is designed to meet these challenges:
- Venture Design: We review the proposed business plan to recommend needed enterprise design modifications
- Compliance Review: We review offering materials prepared by the venture’s securities counsel to recommend terms and provisions needed for SDRA compliance purposes
- Custodial Pre-Acceptance: We submit the final offering materials to a qualified SDRA custodian for pre-approval
- Investor Service: We take over the detailed task of establishing custodial accounts with a qualified SDRA custodian and preparing investment directives for each investor
In short, the SDRAVenture Private Placement Service™ streamlines the offering process for efficient, effective and affordable private placement securities offerings to SDRA investors.