Netcapital pursues broker-dealer license to increase revenue

Netcapital announced that its wholly-owned subsidiary, Netcapital Securities , has applied for broker-dealer registration with the Financial Industry Regulatory Authority or FINRA . This marks a significant step in the Company’s evolution as it looks to expand upon its current service offerings and support private companies with larger and later stage financings than are currently permitted under Regulation Crowdfunding or “Reg CF. Netcapital believes that by having a registered broker-dealer, it will create opportunities to expand its revenue base by: . Hosting and generating additional fees from Reg A+ and Reg D offerings on the Netcapital platform. Under Reg A+, companies can raise up to $75 million from accredited and non-accredited investors every 12 months versus $5 million permitted under Reg CF . Additionally, under Reg D 506 , companies can raise unlimited amounts of capital from accredited investors using general solicitation.