2021 has been a breakthrough year for New York-based broker-dealer Rialto Markets. After overseeing crowdfunding successes for their high-growth private company issuers this calendar year, they have just launched their own Regulation CF raise.
This investment offering is now launched on the NetCapital crowdfunding site.
Many investors will have watched and participated recently as Rialto Markets closes in on raising $200 million in investment for nine exciting high-growth private companies using a combination of Reg CF, Reg A+, and Reg D offerings.
These include a $5 million Reg CF raise for ATLIS – a transformational electric vehicle company – a $15 million Reg A+ for Digital Twin proptech pioneer Cityzenith, as well as a $50 million Reg A+ for Mission First Capital, which has developed an innovative fund specifically for US forces personnel and veterans.
Rialto Markets also recently signed a pipeline of contracts worth a further $716 million, for which the company earns success fees charged on the amount of capital raised.
Rialto Markets’ Co-founder and CEO Shari Noonan said: “The company has also gone through a rigorous process to create its SEC and FINRA regulated ATS (alternative trading system) platform like those used by Nasdaq and NYSE for publicly listed companies.
“But we built ours to enable high-growth private companies to thrive and potentially stay private for longer. They can achieve this by crowdfunding up to $75 million a year using Reg A+ to accelerate their expansion and, latterly, have the flexibility to potentially trade some of their shares through our regulated secondary market ATS.
“This aims to enable cashing out all or part of their investment earlier as they would with a publicly listed company, whether the value has significantly accelerated, decelerated, or stayed broadly the same.
“When the JOBS Act went live in the US (2016) it fired up the democratization of private securities through crowdfunding for many exciting start-ups and ambitious early-stage high-growth private companies.
“Four years ago, our management team left the comfort and security of Wall Street giants like Goldman Sachs, Morgan Stanley, and Citadel to embark on transforming private securities capital raising, investing, and trading through our innovative financial infrastructure and ATS platform.
“This has allowed us to become a ‘go-to’ fully regulated broker-dealer – registered in all 50 states – empowering private companies to raise money far more easily and quickly, through our expertise in crowdfunding and institutional investment.
“We are also using the blockchain-driven secondary market to digitize and potentially create friction-less trading of shares in private companies, which is attracting small private investors.”
Rialto Markets’ strategy had since been upheld by market trends, Noonan added, notably by Forbes recently forecasting that the private securities market will hit a record $7 trillion this year and grow to a staggering $30 trillion by 2030.
But less than 1% of 27 million private companies in the US currently trade their shares on a regulated alternative trading system (ATS) which is now set to change dramatically.
“With such massive growth forecast it was time for Rialto Markets to use crowdfunding to support its strategy, before going for institutional capital shortly afterward,” said Shari Noonan.
“We have chosen to partner with NetCapital for this Reg CF raise, as we had already agreed to supply our secondary trading ATS platform technology to further support their own exciting private company issuers.
“We are inviting retail and accredited investors to become part of our Rialto Markets investment community, and this crowdfunding raise allows investors to join now as this private market continues to grow.
“It’s a unique opportunity for our community to further express their commitment and interest before we move onto a larger institutional investment round next year.”
Rialto Markets’ Reg CF investment opportunity is accessible here on NetCapital.