General Question

gentleman2222's avatar

I want to raise $150M for a startup company. Do I need a Broker-Dealer to help me?

Asked by gentleman2222 (49points) October 25th, 2022

I am interested in raising $150M for a startup company. I am in the U.S. and the startup company is in Italy.
I realize that I would need to get a Broker-Dealer involved as it is against the law to raise monies without a Broker-Dealer.

May I kindly ask:
*How much does a Broker-Dealer cost?
* Can I get hired by the startup company and then raise funds for the startup company? Would this allow me to circumvent the need to get a Broker-Dealer?

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5 Answers

Zaku's avatar

This seems like an invented question at best (and a spam at worst) because anyone with any sort of company worth even 1% that much, would know more than this question seems to. But here’s a stab at answering directly:

“I realize that I would need to get a Broker-Dealer involved as it is against the law to raise monies without a Broker-Dealer.”
– What is your source for the idea that you “need” this – according to what?

”*How much does a Broker-Dealer cost?”
– $11.37 There is no one answer to this question. It would depend on the person, their company, and the details.

“Can I get hired by the startup company and then raise funds for the startup company?”
– Of course. Anyone can create a company and hire themselves, or hire someone else, before raising funds. Why is that even a question for you?

“Would this allow me to circumvent the need to get a Broker-Dealer?”
– I don’t think there is some absolute “need” for a “Broker-Dealer” in any case.

I suppose it depends on what you mean by “raise” and “startup”. In lay terms, all it takes to raise $150M, is people with that much money who are willing to invest that much.

gorillapaws's avatar

@Zaku I’m also suspicious if this is spam.

“I don’t think there is some absolute “need” for a “Broker-Dealer” in any case.”

You may be right but there are SEC laws that govern how money can be raised for investment. For example, investing in certain securities require you to be a qualified investor. I’m not a lawyer and my best advice is for the OP to consult with a lawyer who deals with the SEC laws (they aren’t cheap—of that I’m quite certain).

gentleman2222's avatar

This question is not spam.

>What is your source for the idea that you “need” this – according to what?

According to this: “If a broker-dealer is not registered they can face penalties enforced by the SEC. You can check a broker-dealer’s registration here: https://brokercheck.finra.org/. For private companies looking to raise money, working with a broker-dealer will be a key part of their capital raising activities. Dec 9, 2020
THE ABOVE IS FROM: Why is a Broker-Dealer Important for Private Company…https://www.koreconx.com › Blog Old

Jeruba's avatar

The wording of the question suggests to me that the OP is not the owner but a potential investor. Does that make a difference in the answers?

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