Starting something big? Build it with the tools of a public company.

For founders at the beginning, whether you incorporated last month or haven't yet. Public companies raise capital, attract talent and earn trust in ways private startups can't. We help you build that way from early on.

Led by Joel Arberman, who has taken 17 companies public, including a dozen with no revenue at all.

Is this you?

A good fit if you

• Are committed to building your company for years, not months
• Can name the people, partners or customers who'd take you more seriously if you were public
• Can raise money yourself, from your own network or beyond it, with the right preparation
• Want to run your own raise, with an experienced guide beside you
• Are comfortable with transparency, public reporting and outside shareholders

Probably not a fit if you

• Want someone else to find your investors
• Are looking for a quick payday from selling shares
• Don't want to report publicly or answer to shareholders
• Aren't ready to commit time and money to building the company now

Why build with public company tools

Most startups spend years doing three things the hard way.

Raising money. Private investors can't see a price and can't sell for years, so they price in that risk, and you give up more of your company. A public company raises with a price, audited numbers and a market behind it. Access builds in stages: first the investors you find yourself, then investors who follow small public companies, then larger rounds on better terms as your record grows.

Attracting people. Early teams run on equity, and private startup equity is hard for anyone to value. Stock with a market price is something a senior hire, an industry veteran or a sought-after adviser can actually weigh. Consider a financial services startup with a listing and very little money. It made its stock option plan its main recruiting tool, and in its first year it built a team of 120 people and closed $80 million in transactions. A private startup with that balance sheet doesn't build that team.

Being taken seriously. Customers, partners and suppliers hesitate to depend on a young company they can't check. Audited financials and public filings let them check you without asking.

And later, when the business is ready, you can buy other companies with your stock.

Honest expectations

• Going public doesn't raise money by itself. You raise first, and that money funds the process.
• The first year is the hardest. You'll spend real time and money before the structure starts paying you back.
• Being public costs money every year. We size your raise to cover the listing and your first two to three years as a public company, so the business isn't carrying it alone.
• Your shares aren't a quick payday. Being able to sell some takes years of results, not months.

How it works for a startup

Your company is always in one of three modes. The work, and the monthly fee, follow the mode you're in.

1. Raising. Every engagement starts here, whatever your stage: every company going public needs more shareholders, and almost every one needs capital too. We start by organizing the company properly: entity and structure, cap table, founder agreements, financial records and governance. If you haven't incorporated yet, we can set the structure up right from day one. Then we prepare your raise: how much, on what terms, investor materials, a data room, a compliance framework and an outreach plan. You run the private placement, raising from your own network and from investors you find beyond it, and we coach you through every conversation. The raise funds your plan and gives you the shareholders you'll need to list.

2. Listing. With the capital in place, we manage the process of becoming a public company. For most startups that's a direct listing on the OTC market, with the option to move up to a larger exchange later. We bring in and coordinate the auditors, securities lawyers and other specialists.

3. Building. Strategic advice whenever we're not running a listing: recruiting with stock, partnerships, capital strategy and, when the time is right, acquisitions.

What it costs to start. $10,000 a month while you're raising. That mode typically runs about two months, so about $20,000. After that, the monthly fee follows the mode you're in and the size and scope of the work. We also hold equity, so we only do well if you do. Third-party costs such as audit and legal fees are paid directly to those providers.

If your raise falls short, you can stop there, owe nothing further, and any equity we hold is cancelled.

Who you'd be working with

I'm Joel Arberman. In 1999 I took my own startup public with almost no money, writing the registration statement myself because nobody would help a company that small. Once our shares traded, a development firm took half its fee in stock, a PR agency took all of its fee in stock, a well-known venture capitalist joined our board for options, and we bought another company entirely with stock.

Before that I was an equity analyst in New York and, at 22, a partner at a 700-person investment bank. In more than 30 years since, across Wall Street, Bay Street and my own companies, I've taken 17 companies public, several of them my own and a dozen with no revenue. I'll tell you honestly whether this fits your company, and if it does, I'll be beside you for every step.

Questions founders ask

Can a company with no revenue go public?

Yes. Joel has taken a dozen pre-revenue companies public. Revenue isn't the gate. What matters more is the mindset of the founder and team, and whether you can raise the capital to fund the process.

We haven't incorporated yet. Is it too early?

No. Many founders we work with incorporate after our first conversation, which lets us set up the structure properly from the start.

How much will we need to raise?

Enough to cover the listing, your operating runway through it, and your first two to three years of being public. Depending on the route and your plans, that's usually several hundred thousand to a few million dollars. We size it with you in raise mode.

Will you introduce us to investors?

No. We have no investor list, we're not a broker-dealer, and we never contact investors on your behalf. You raise it yourself, from your own network or beyond it. We prepare you and coach you through it.

How long does it take?

Raise mode typically runs about two months. If your raise takes longer, we continue in building mode until you're ready to list. A direct listing usually takes 9 to 10 months once the capital is in hand.

What if the raise falls short?

You can stop there and owe nothing further, and any equity we hold is cancelled. You keep an organized company, clean records and a far better understanding of how to raise next time.

Is this an IPO?

Usually not. Most startups list through a direct listing on the OTC market, which doesn't need an investment bank. An IPO depends on a bank agreeing to sell your shares, and few will for an early-stage company.

Not ready to apply? Ask for the free Starting Up guide in the form below.