The US regulator of brokerage firms and exchange markets, FINRA, licensed Netcapital as a broker-dealer to facilitate larger
fundraises while offering investors a broader spectrum of opportunities.
Private Securities and Business Placements
Netcapital Securities Inc., a subsidiary of Netcapital
Inc., can now engage in private securities and referral business placements.
This approval enables the company to support equity capital raises under
Regulation A (Reg A) and Regulation D (Reg D).
Beyond facilitating fundraises, the new license
enables Netcapital to syndicate deals with other broker-dealers, creating more
collaborative investment opportunities.
This development offers issuers access to
enhanced fundraising capabilities, particularly for companies pursuing
larger-scale equity raises. By aligning with other broker-dealers, Netcapital
can broaden the reach and depth of its deal syndications. Additionally, Netcapital Securities Inc. can now
charge fees tied to the capital raised under Reg A and Reg D, further
strengthening its financial model.
Commenting about the new offering, Martin Kay, the CEO
of Netcapital, said: “This is a major milestone for
Netcapital, positioning us to expand our offerings and allowing us to better
serve our clients by supporting larger capital raises.”
According to the company, this approval will provide investors with a wider array of private equity opportunities. Netcapital plans to partner with multiple broker-dealers to introduce a range of investment options and streamline access to private placements.
Expansion in the Private Markets
Besides this, Netcapital aims to democratize private
equity investment and streamline fundraising. The firm’s fintech platform
reportedly allows private companies to raise capital online. The addition of
broker-dealer operations also enables the company to improve its funding
solutions.
Expect ongoing updates as this story evolves.
This article was written by Jared Kirui at www.financemagnates.com.
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