Raising Money in a Post Dodd-Frank World – by Ronald Woessner

Dodd-Frank made it extraordinarily difficult for micro-cap companies to raise money.

The chart below, excerpted from an article by noted financial analyst Michael Markowski, who predicted the demise of Lehman Brothers, Bear Stearns, and Merrill Lynch, illustrates that the Dodd-Frank legislation crushed the values of micro-cap companies. The crushing of their valuations has made it extraordinarily difficult for micro-cap companies to obtain funding from sources other than Friends & Family investors.

Large Cap vs Microcap Spread
Raising Money in a Post Dodd-Frank World

You can read the full text of Mr. Markowski’s article here.

For most micro-cap companies, the expertise of firms like Microcap Strategies is needed to help raise funding from sources other than Friends & Family investors in a post Dodd-Frank world.