DealMaker, a tech-infused securities crowdfunding enabler, has announced new headquarters in New York City.
Ostensibly, DealMaker was founded and has been based in Toronto. Having already established additional offices in the US, the move to the world’s leading financial center makes a lot of sense. While supporting Canadian firms, DealMaker has primarily focused its energy on issuers in the US, helping firms to raise growth capital leveraging the full stack of securities exemptions, including under Reg CF, Reg A, and Reg D.
In an email, DealMaker explained the transition as strategic:
“As we scale DealMaker’s platform and expand our footprint, this location strengthens our access to capital markets, deepens our U.S. presence, and sets the stage for even more collaboration with founders, investors, and partners.”
DealMaker reports that since its inception, it has helped firms raise over $2 billion while supporting the creation of more than 40,000 jobs.
Along with the announcement of moving to New York City, DealMaker shared some other updates, including the acceptance of stablecoins, specifically USDC, issued by Circle. This makes sense as stablecoins represent the future of payments and transfers, as individuals and firms move away from wire transfers, ACH, and other methods.
Online capital formation has undergone significant changes since the JOBS Act was signed into law in 2012. While slow to start, today, online capital formation is becoming more frequent. Issuers can raise money from Accredited Investors using Reg D 506c and pairing it with Reg CF to cater to non-Accredited Investors. As well, Reg A is a scaled process to raise funds in an offering that must be qualified by the SEC before accepting money. It accepts both Accredited and Non-Accredited individuals. Uniquely, shares in an offering can be traded immediately if the issuer chooses to do so.
Updates on the way should help boost the ecosystem even further. It is expected that the definition of an Accredited Investor will be changed this year, thus creating a path for smaller investors to participate in Reg D offerings. This will be good for issuers, investors, and platforms.
