SAN DIEGO, May 20, 2015 (GLOBE NEWSWIRE) -- FundAthena today becomes the first investor marketplace to operate under the new Regulation A+, which allows companies to "test the waters" with investors before moving forward with the Securities and Exchange Commission's process to raise funds. In order to correct an imbalance of funding, FundAthena will focus on the severely underserved market of gender diverse companies, which will be able to raise up to $50 million annually.
The marketplace, www.fundathena.com, provides a way for growth stage businesses to seek out potential investors and refine their approach to investors before moving into the SEC process of raising funds. Companies can showcase their success, define their market and its growth potential as well as gauge investor interest.
This is the first time in 80 years that Main Street investors have been allowed to invest in private companies. Investors provide invaluable feedback and can express interest through IndicationOfInterestTM, a non-binding commitment giving them first access when the companies are ready to raise money.
"FundAthena is a game-changer for the growth-stage capital raising world," said Rod Turner, Co-Founder and Executive Chairman. "Businesses and Main Street investors have never been given an opportunity like this and we are excited to be at the forefront of making this ground breaking fundraising happen."
As a result of SEC Regulation A+, a new TestTheWatersTM format is now possible giving maximum flexibility and opportunity to companies and investors alike. It allows companies to "test the waters" as of March 25, 2015 and will begin allowing those same businesses to begin fundraising in this format in July, 2015.
"With the new Regulation A+, we are excited to take advantage of the TestTheWaters™ program to assist us in evaluating Main Street investor interest and preparing for our funding efforts," said Gail K. Naughton, Ph.D., CEO of Histogen, a company devoted to redefining regenerative medicine and one of the first companies to utilize FundAthena. "This visibility is invaluable as we work toward evaluating the best type of funding to support our entry into new markets."
While the FundAthena marketplace is a first for Reg A+, it is also groundbreaking in terms of its focus. FundAthena will serve companies that are run by gender diverse management teams, an overlooked and severely underserved market.
"It is important for a new fundraising platform to step in and dramatically improve the capital marketplace for women-run and gender diverse businesses," said Kim Folsom, Co-Founder and President and CEO. "Gender diverse companies are an underserved market with incredible potential for more success. FundAthena is a catalyst for that success."
FundAthena defines gender diversity as having at least one women in the "C" level management team, at least 10% in the VP/Director level management team, and 25% in the professional level with women owning at least a 10% equity stake in the business. These mid-stage, late-stage and selected startup businesses will have raised at least $1 million in seed capital and have demonstrated market traction by generating revenues of at least $500,000. The companies are seeking raise to $2 million to $50 million in growth capital to scale into larger size businesses.
According to the 2014 Diana Report, only 2.7% of the companies that received venture capital funding between 2011 and 2013 had a female CEO. In 2013 venture funding, only 16.9% of the funded companies had a woman on their executive team. Yet, studies such as the McKinsey Women Matter 2.0 in 2007, show that companies with gender diverse teams outperform gender exclusive management teams by more than 200% as measured by operating margins.
While the beta site is operational with this launch, new features and developments in the marketplace will arrive rapidly.
FundAthena is the first SEC Regulation A+ marketplace. Its focus is for Main Street investors to invest growth funds in businesses run by gender diverse management teams. FundAthena provides funded businesses with access to investor management and advisory boards for business strategy support. We address the problem of access to capital in the underserved market of excellent, gender diverse management teams and women-led businesses. Founders of FundAthena prior business successes include: Symantec (NASDAQ:SYMC).For more information, visit FundAthena.com.
CONTACT: Holly Hitchcock Holly@CruxPartners.com 805.801.9798Source: FundAthena