In this webinar, Scott Jordan, CEO of S. Jordan Associates and Co-Founder of HealthiosXchange, summarizes the impact of FinTECH (Financial Technology) and Legislation (JOBS Act) on financing, licensing, and “exit” (IPOs) activity in the healthcare industry.
Scott highlights the various “Titles” of the JOBS Act and how companies can leverage it to advance their development programs including:
- Title II of the JOBS Act: Rule 506 © - General Solicitation
Description: Title II allows general solicitation of investors online; meaning presenting deal terms (share price, # of shared offered/outstanding) to prospective investors without a previous relationship.
FinTECH Portals: AngelMD, AngelList, Healthfundr, HealthiosXchange, Springboard
Questions: Can I leverage FinTECH portals to raise awareness of my equity offering and raise the probability of closing funding round from retail and institutional investors? How should I set my expectations regarding the amount of capital I can raise online under Title II?
- Title III of the JOBS Act: Crowdfunding
Description: Title III allows non-accredited investors to invest in private companies broadening the investor base of healthcare companies.
FinTECH Portals: Title III becomes effective in May of 2016.
Questions: How can I aggregate smaller investments from retail investors and make them look more institutional? Given investor limits (caps), can I raise enough capital to justify pursuing a capital raise under Title III? What stage of development and market sectors (i.e. HIT, diagnostics) are best suited for this financing vehicle?
- Title IV of JOBS Act: Reg A+, Mini-IPO
Description: Reg A+ allows companies to raise up to $20M under Tier 1 and $50M under Tier 2 and simultaneously list on a public stock exchange.
FinTECH Portals: StartEngine, WR Hambrecht
Questions: Given I have a mid-late stage biopharma company, can I leverage Reg A+ to simultaneously raise capital and list on an exchange (OTCQX, NASDAQ)? Do I need to hire an underwriter to secure investors, or can I leverage social media/general solicitation in place of bankers?
Case Study: Aperion Biologics – Hired WR Hambrecht to raise equity from non-accredited and accredited investors under Reg A+