Investment Banking combined with CMG Funding Services provides client companies a single source to structure, develop, market, and promote a private securities offering. CMG has defined and developed Investment Banking services that specifically serve the needs of small to medium sized private firms and small cap public companies. SEC Reg D 506(c) and Reg A+ allows public solicitation for private offerings. The represents the first major change in our securities law in over 75 years. Up to this point the majority of Investment Banking firms have been structured to serve mid market and large cap companies. Each firm developed a portfolio of capital sources from a variety of institutional investors. Raising capital for a client company involved a process of matching the company with their most appropriate “capital sources”.
The JOBS Act of 2012 has changed this paradigm. Today traditional “capital sources” have been augmented by over 50 million individuals. The majority of Investment Banks are not prepared to serve small to medium sized companies and help them efficiently access capital from this new class of investors. The challenge: define a process that can effectively acquire “capital” for a client company from a pool of prospective investors that ranges from 8 million (accredited) to 50 million (unaccredited). Unlike the traditional Investment Banking model that works with a limited number of institutional capital sources, CMG believes a “New Investor” acquisition process has to be developed that takes full advantage of the current securities regulations.
Therefore the Investment Bank of the 21st Century will not only be required to perform and complete transactions within the framework of the new regulations as a SEC/FINRA registered company but also possess tier one marketing capabilities combining cutting edge digital technologies with superior strategic and tactical capabilities. The mission of a successful 21st Century Investment Bank is just not to complete the transaction but to educate and inform while continuing to build awareness and improve access. The potential is staggering; now over 1.3 million small to medium sized businesses can talk directly to 50 million prospective investors.
The primary responsibility of our Investment Banking process is as follows:
- Assist the client in structuring the offering.
- Define the required strategies and tactics to support the placement effort.
- Interface with CMG Funding Services to complete the investment development tasks.
- Once the CMG Funding Services start the Marketing Process interacts with and qualifies prospective investors.
- Work with prospective investors and registered professionals to complete the securities acquisition process.
- Manage regulatory and compliance issues including investor verification, state and local filings, etc.
CMG works exclusively with Maxwell Financial Services LLC, a boutique Investment Bank, dedicated to placing Reg D 506(c) and Reg A+ private offerings.