Project Financing

StaySafe Capital Connnect

With the help and expertise of our Teaming Partner Open Source Capital we can help you accelerate the process of executing a successful capital raise. So whether you need capital to expand your business or raise project financing, we can help you to raise money from thousands of investors. 

Traditionally, infrastructure investments have been financed with public funds. Governments were the main actor in this field, given the inherent public good nature of infrastructure and the positive externalities often generated by such facilities. However, public deficits, increased public debt to GDP ratios and, at times, the inability of the public sector to deliver efficient investment spending, have in many economies led to a reduction in the level of public funds allocated to infrastructure.

In addition, Banks have traditionally been providers of infrastructure loans. Efforts are underway to develop new financial instruments and techniques for infrastructure finance. These efforts appear to be having some success. Data indicates, for example, that developments in the equity market for investments in infrastructure are promising and that the creation of a liquid market for project bonds can be a good complement to syndicated loans for project finance. Done properly, the securitization of bank loans could help support lending and diversify risks, while also assisting in the development of transparent capital market instruments. Many investors nonetheless perceive a lack of appropriate financing structures. Only the largest investors have the capacity to invest directly in infrastructure projects. Smaller pension funds in particular require pooled investment vehicles.

As a consequence, it is increasingly acknowledged that alternative sources of financing are needed to support infrastructure development.

In this context, we are developing a capital channel that is market-based using crowdfunding as the regulatory framework for contractors needing preconstruction or project financing.

Regulation CF

What is Regulation CF?

Regulation Crowdfunding, also known as Reg CF, offers an exemption from the registration requirements for securities crowdfunding. Through Reg CF, companies can offer and sell securities up to $5 million without having to register its offering with the SEC. This Regulation offers vast opportunities for start-ups and small businesses to raise capital. Regulation CF allows anyone from the general public to make an investment. Investing under Regulation CF can be risky and investors can lose their entire investment. As such, the SEC has limited the amount one can invest, which is dependent upon one’s net worth and annual income.

​Specific Securities and Exchange Commission (SEC) regulations exist for companies hoping to carry out securities offers through crowdfunding. According to Regulation Crowdfunding, a company must register with the SEC before making any offer or sale of security, unless said company is exempt.

​The Securities Act of 1933 required registration of any offer and sale of securities, absent an available and applicable exemption from registration. The Jumpstart Our Business Startups Act enacted in 2012 loosened some regulations regarding the offer and sale of private securities. In particular, Securities Act Section 4(a)(6) of the JOBS Act allows certain crowdfunding transactions exemption from registration. In 2015, the Commission adopted Regulation Crowdfunding, which allowed eligible companies to raise funds via Regulation Crowdfunding beginning May 2016.

Regulation A

What is Regulation A?

Regulation A is an exemption from registration for public offerings. Regulation A has two offering tiers: Tier 1, for offerings of up to $20 million in a 12-month period; and Tier 2, for offerings of up to $75 million in a 12-month period. For offerings of up to $20 million, companies can elect to proceed under the requirements for either Tier 1 or Tier 2.