Which Broker Dealers does Manhattan Street Capital work with?
We work with Broker-Dealers and their Syndicates and with Underwriters and Private Placement firms.
When a company that we are assisting elects to use a broker-dealer, we introduce you to brokers that are relevant to your needs and help you get a fair deal with them. We will help you prepare your pitch to them if needed.
The most popular arrangement is to work with a broker-dealer to allow easy access to investors from the US States that are not cooperating with the SEC. For this, we have three primary brokers that we work with regularly that charge a 1% fee (or less). They only charge a fee for the investment money that comes from the problem states.
The so-called "Problem States" are:Texas, Florida, Washington, and New Jersey. As a group, they account for ~12% of the US online active investing market with Texas (6%) and Florida (4%) in the number one and two positions. Of course, all investors from outside the USA are allowed to invest even when you do not have a Broker-Dealer.
Using a Broker-Dealer in a Regulation A+ offering is optional. If you use a national FINRA Broker-Dealer, then you are automatically allowed to raise capital from all US States with some complications in the case of Washington State that make it a risk.
It is possible to work with a securities attorney and file for your company in all or some of the "problem states" - but this journey takes time and effort. When started early in the Reg A+ process, this can result in a cost-effective solution that does not require you to pay broker-dealer fees. We will get you on this path if you select this method.