Recently, a story on the “California Report” which highlighted an innovative investment strategy aired on KQED. It’s something my capital consulting firm has championed. The following summary describes the “Direct Public Offering” (DPO) phenomenon.

If your company is not at the stage to bear the cost or complexity of an IPO (initial public offering), or if you can’t obtain or don’t want to be limited to investment from high net worth investors (such as VCs or Angel investors), a DPO is an attractive option. Over the years, the popularity of DPOs, has continued to grow as a way for businesses to raise capital from their communities. DPOs are similar to IPOs, where people can invest in a company. However, shares offered in DPOs are not traded on the stock market, rather the investment is offered directly by the company to the investors and the company remains privately held.

Today’s consumers want to support their communities whether it’s eating locally or shopping locally, and DPOs allow them to invest locally too. Many successful companies participating in DPOs are not only looking to raise capital, but also want to connect to and improve their community, which resonates with their potential investors. Through DPOs, local businesses have successfully raised enough capital to fund their initiatives with the help of their neighbors, customers, partners, and fans. DPOs allow people of moderate income (as well as high net worth investors) to invest in private companies that they support and want to see succeed. And companies doing DPOs have been able to share their companies’ success with their communities. DPOs have sparked economic growth all over California, leading the way for more companies to harness the power of community to thrive and grow.

To learn more about DPOs you can read or listen to the full story here. Or check out my website at http://www.cuttingedgecapital.com/resources-and-li…