Connecting Your Business to Capital in a Better Way

-Investor Marketing CRM

-Broker-Dealer Network

-Transfer Agent Services

-Investor Introductions

-Investor Relations Services

-Escrow Services

-SEC Attorney Introductions

-Investor Marketing Services

-PCAOB Qualified Auditors

At Public Raise, we are dedicated to helping companies of all sizes reach their capital raising goals. With over 25 years of experience in the industry, our team has a deep understanding of the financial markets and a track record of success.

We offer a range of tools and services designed to connect investors with the best opportunities in the private markets. Whether you are a high-growth startup, a hospitality company, or an income-generating real estate company, we can help you find investors.

In addition to our extensive network of attorneys, CPA's and Broker-Dealers, we also provide expert guidance and support to help our clients make informed decisions on their capital structure. From initial strategy and due diligence to ongoing support, we are with you every step of the way.

At Public Raise, our top priority is ensuring that our clients are successful. We are committed to building long-term relationships and providing the highest level of service to each and every one of our issuer clients.

If you are looking to raise capital in the private markets and want to work with a team of experienced professionals, we invite you to contact us to learn more about how we can help.

David Lee

David Lee, the Founder and CEO of Public Raise, started his career on Wall Street in 1994.  His specialties include investment banking, corporate mergers and acquisitions, and capital formation strategies.

He has over 25 years in banking and financial advisory for both institutional and individual investors and has previously worked for Morgan Stanley, Raymond James, Wells Fargo Advisors, and Charles Schwab.

While David enjoyed the challenges of his financial career, he preferred working hands-on with business owners, helping them solve their biggest problems.  So he founded All-Star Franchise, LLC (www.allstarfranchise.com), a franchise development company, to help further that goal.  Since leaving Wall Street, he has been a franchise operator, developer, multi-unit operator, franchisor, and founder of various franchise companies.  More importantly, he has helped many people grow their organizations, create more jobs and achieve their goals.   

David earned his Bachelor's degree in Finance from the University of Houston-Downtown and holds FINRA licenses 4, 7, 9, 10, 24, 27, 66, and 79 securities registrations.

Mr. Lee also serves as Managing Director of Netshares Financial Services, LLC, an SEC registered broker-dealer and FINRA member.

Can Public Raise Help You Achieve Your Funding Goals? 

Contact us for a complimentary, no-obligation consultation today. 

Latest Blog

Find the latest blogs news from Public Raise. See related capital and financial technology articles, photos, slideshows, and videos.

Franchise Crowdfunding

Franchise Crowdfunding

September 19, 20224 min read

To Crowdfund or Not to Crowdfund, That is the Question

Not long after the internet became a widespread tool, small businesses started eying it as a way to raise capital from the general public without running afoul of state and federal securities laws. Crowdfunding was a possible route, but companies often couldn’t issue equity in their company when seeking funds from the general public. A possible solution came in 2012 when the Jumpstarting Our Business Startups or JOBS Act was passed.

Reg CF, Equity Crowdfunding, Reg A+

More specifically, Title III of the JOBS Act allows for a ‘crowdfunding’ exception to securities laws that would otherwise require investors to be accredited investors. Maybe we should actually back up for a second before we get to these exemptions.

After the stock market crash of 1929 and The Great Depression, the Securities Act was passed. It meant to protect against fraud by placing certain requirements on the issuance of a security unless an exemption applies. Of course, things like the internet and crowdfunding didn’t exist in the 1930s, so there was no exemption for small businesses to seize upon. Title III of the JOBS Act creates such an exemption for crowdfunding.

Regulation Crowdfunding

Raising capital and issuing securities in this way is known as Regulation Crowdfunding. This means of issuing securities bypasses the need to have accredited investors and, subject to some limitations, the need for determinations based on income or net worth. Regulation crowdfunding can work kind of like the GoFundMe or Kickstarter campaigns you’ve probably seen going viral on social media, except instead of those sites, issuers use third-party intermediaries that have registered with the Securities and Exchange Commission, or SEC, to make their offering.

The main aspects of Regulation Crowdfunding touch on five main areas of concern:

  • The exemption’s actual requirements,

  • The requirements surrounding the issuers of securities in a crowdfunding


  • The requirements that apply to the intermediaries that are used in crowdfunding


  • Some additional funding portal requirements, and

  • Other miscellaneous provisions.

    There are also some limitations that have been placed on Regulation Crowdfunding. Some of the limitations mentioned above include limitations on how much can be invested in each 12-month period, as well as restrictions on reselling the security within a one year period. For example, in a 12-month period, the total amount of securities issued to an individual investor cannot exceed $100,000. This is in addition to the following limitations based on an individual’s annual income and net worth.

  • If an individual’s annual income or net worth is less than $100,000, the limit is $2,000 OR 5 percent of the lesser of either his or her annual income or net worth, whichever is greater;

  • If both the annual income and net worth are equal to or greater than $100,000, then the limit is 10 percent of the lesser of either his or her annual income or his or her net worth.

    As mentioned above, another limitation on Regulation Crowdfunding is that securities must be sold through a funding ‘portal’ or through a broker-dealer that is registered with the SEC. The purpose of this requirement is to offer some protection to investors investing through crowdfunding. However, issuers should know the limitations regarding what funding portals can offer. For example, a funding portal cannot offer investment advice. Issuers can find a funding portal by visiting the website of the Financial Industry Regulatory Authority, also known as FINRA.2

    Another requirement related to Regulation Crowdfunding is the inclusion of Bad-Actor provisions, which means that if a covered person, such as the issuer or a director of the company or equity owner, had criminal convictions or other disciplinary action against him, something that is known as a ‘qualifying event,’ then the issuance of the securities would not be allowed. These disqualifications however will not look back at actions before May 16, 2016, when the Regulation Crowdfunding provisions went into effect.

    Lastly, the requirements include certain disclosures that must be made. While the Act itself is meant to reduce the regulatory burden on issuers, certain disclosures still exist, generally falling into one of five categories:

  • Director and officer information;

  • Principal shareholder information;

  • The issuer’s business plans, including their risk factors;

  • A description of the offering; and

  • Financial disclosures

    Disclosures to the SEC and potential investors are made through Form C, a 31 question form that must be filed with the SEC. However, it should be noted that the issuance of these securities must be made through a registered third-party, and this third party often can offer guidance about filling out and filing this form with the SEC. There are also ongoing reporting requirements that exist with regulation crowdfunding, such as annual reports that must be filed 120 days after the end of the issuer’s fiscal year.

Back to Blog

Book Your Free Demo Call

-Investor Marketing CRM

-Investor Funnels

-Compliance Assistance

-Broker-Dealer and Attorney Introductions

Public Raise specializes in helping small and medium-sized businesses raise capital legally through online channels. This expertise extends to businesses that serve consumer retail, real estate, technology, financial services/fintech, and energy. Contact us to learn more about raising capital.

Disclaimer – Public Raise performs no underwriting function and acts solely on behalf of a client company in providing in-house financial advisory and investor marketing services. Although the consulting services of Public Raise may include general advice and consultation regarding general legal topics relating to the consulting services to be rendered, particularly with respect to areas of financial expertise of Public Raise the services rendered by Public Raise do not include the rendition of professional legal services or any specific legal service, advice or consultation by any affiliate of Public Raise. Public Raise is not a Broker Dealer or registered with FINRA or the SEC. Public Raise will not accept broker success fees or commissions for raising capital.

David Lee, who is the Founder of Public Raise, is also a Managing Director and Registered Representative of Netshares Financial Services, LLC ("Netshares"), an SEC registered broker-dealer. Any activities of Public Raise, its employees, or the Management of Public Raise, which is conducted in connection with or set forth in this website is not in any way related to the position of an affiliated person of Netshares. The Management of Public Raise and its business are separate and independent of Netshares and is not part of the business conducted by Netshares and any representation to the contrary is false. Netshares has no responsibility or liability for the activities of Public Raise, its employees or the Management of Public Raise, or any representations made in connection with or set forth in this website.

© Copyright 2021. All-Star Franchise Development, LLC. All rights reserved.