What are the benefits of doing a DPO?
A company issuing a DPO is adding equity by attracting new shareholders from among the public. For several reasons, the DPO is an increasingly popular choice for growth oriented micro- and small businesses: • IPO underwriters are seldom interested in offerings under $5 million • A DPO is less costly to the company than an IPO • The regulatory burden is very modest for DPOs under Regulation A • The SEC has encouraged the use of the Internet for DPO’s Traditionally, when a small growth company has the good fortune of attracting venture capital, the VC firm typically asks for control and/or substantial amounts of equity. In some cases, the entrepreneur loses control of his or her company and can be removed. The Direct Public Offering is a strong alternative to IPOs and venture capital. DPOs enable entrepreneurs leading aggressive companies to raise the capital that they need without losing control of their corporations. Moreover, the costs associated with a DPO are far more manageable and
