How Does It Work - Sponsors
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Review Eligibility
  • Offering must have an acceptable level of Sponsor Capital and must acquire assets at the time of its first Closing.
  • Neither Sponsor nor affiliated entity may be subject to any Bankruptcy or reorganization proceedings;
  • Offering entity must be duly organized, validly existing and in good standing under the laws of each jurisdiction in which the Offering is organized or does business;
  • Sponsors must have at least two years experience with relevance to the assets being acquired;
  • No Sponsor or related person may have engaged in any activity that would disqualify the Offering from utilizing the exemption from Registration under Rule 506 if applicable.
   
Download Sponsor Application Process




Why Directpost
  • Directpost offers ability to reach a greater investor audience including Broker-Dealers and their Registered Representatives, RIA’s, QIBs and Accredited Investors
  • DP utilizes an efficient standardized procedure
  • Directpost fees are offsetby lower printing costs, reduced Rep acquisition cost including time to provide material to perspective investors and Broker Dealers
  • DirectPost fees are offering costs, not commissions, and do not impact fees to selling Registered Representatives.
  • Directpostx.com complements Sponsors-site but will drive greater audience because of greater content and consistent presentation policies.
  • Directpost’s chat function provides answers to questions to entire audience that reduces time in administering offering


Frequently Asked Questions

(Click question to expand/collapse answer.)

What options do I have for offering types? What is the difference between 506(b) and 506(c) offerings?

Directpost can list any offering in which general solicitation is permitted. This includes 506(c) Regulation A and Regulation S. There are a myriad of differences between these rules, however if you are contemplating an offering that will not be registered with the Securities Exchange Commission we encourage you to discuss with your counsel the flexibility in communication that Rule 506(c) may afford you.

What if I have investors from my network?

We would encourage you to have those investors register on Directpost, however that is not a requirement. However you must agree that all sales be made by a Broker –Dealer and be reported to Directpost.

How long will it take to raise money?

There is no set time frame for raising money that is determined by many factors beyond anyone’s control however we believe that the ability to list on Directpost should result in a shorter period than would otherwise be the case.

Does Directpost work with any Sponsor wishing to publish it offerings on the site?

Directpost will not list all offerings presented. Listing is dependent on a review of the material presented to Directpost including third party reports and a minimum list of informational documents. The listing does not mean the Program will succeed, and refusal to list does not mean the project will fail.

Does Directpost prepare legal documents?

Directpost allows Programs approved for listing to post information that has been reviewed by Directpost to be posted to its site. Directpost does not prepare any documentation, but does require a minimum set of documented information to be listed.



Investing in Direct participation programs is not suitable for all investors. An investment in direct participation programs involves a high degree of risk and should only be considered a long-term investment. You must be prepared to withstand a total loss of your investment. Direct participation programs are also illiquid and there is no guarantee that a market will develop for such securities.

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