Alabama Small Business Development Consortium

Members: Alabama A&M University, Alabama International Trade Center, Alabama State University, Auburn University, Jacksonville State University, University of West Alabama, Troy State University, University of Alabma, University of Alabama at Birmingham, University of Alabama at Huntsville, University of North Alabama, University of South Alabama

Office of the State Director

2800 Milan Court, Suite 124

Birmingham, AL 35211

205-943-6750

Equity Capital Investment

is the Angel Capital Electronic Network. It provides a listing service for entrepreneurs who seek venture capital. ACE-Net allows accredited investors (angels) to evaluate company information provided by entrepreneurs who wish to list the securities of their company for sale. Both investors and entrepreneurs are encouraged to submit listings. Click the icon above to visit SBA's ACE-Net site.

FAQ's:

What is ACE-Net?

The Access to Capital Electronic Network (ACE-Net) is the simple, secure and low-cost way for investors and small companies to find each other.
It is an Internet-based listing service for securities offerings of small, growing companies located throughout the nation, that are viewed anonymously by accredited investors.

Who Needs ACE-Net?

Venture capitalists, institutional investors and individual accredited investors can use ACE-Net to find investment opportunities from across the nation.
Entrepreneurs with small, growing businesses can use ACE-Net to attract equity investors while meeting the legal requirements of federal and state securities regulators.

How is ACE-Net Different from Other Internet-Based Investment Programs?

Because small businesses serve a critical role in the economy, ACE-Net was developed by the U.S. Small Business Administration’s Office of Advocacy as an effort to encourage the creation of a national marketplace for investors to find and invest in equity offerings by small companies.
ACE-Net operates under the guidance of a no-action letter issued by the SEC staff. The letter requires that all small companies listed on ACE-Net be "in full compliance with the appropriate filing and registration requirements of federal and state securities laws and regulations."
ACE-Net has also consulted with the North American Securities Administrators Association, Inc. (NASAA) – the national organization, made up of every state securities regulator, that is devoted to investor protection.
ACE-Net is a not-for-profit listing service that is designed to facilitate the flow of information between entrepreneurs and investors. It is not designed to be a source of clients or business for attorneys, consultants, brokers, dealers, or any others who charge fees for services to entrepreneurs or investors.
ACE-Net is not a broker-dealer, investment adviser, or a securities exchange, and therefore, there are no fees or commissions. ACE-Net charges a nominal fee to cover administrative costs, but this fee is in no way contingent or related in any manner to the outcome or completion of any transaction resulting from a company's listing on ACE-Net.

Can Any Investor Enroll with ACE-Net?

Only "accredited" investors may enroll with ACE-Net.
SEC defines an individual accredited investor as a person with over a $1 million in assets or whose income is at least $200,000 ($300,000 jointly with a spouse).
SEC defines an institutional accredited investor to include several types of financial institutions such as bank, broker, dealer, insurance company, investment company, or SBIC.
The ACE-Net Investor Application requires investors to certify that they meet this criteria.

Can Any Entrepreneur Enroll with ACE-Net?

Only entrepreneurs who can sell security interest in their companies can enroll with ACE-Net.
This means corporations and limited liability companies (LLCs) may be listed on the ACE-Net Company Database.
The following business entities cannot list on ACE-Net: sole proprietorships, general or limited partnerships, joint ventures, "blank check" or development stage companies, or those involved in oil, gas or other extractive interests.
The ACE-Net Entrepreneur Application requires entrepreneurs to certify that their companies meet this criteria.

How Much Does it Cost to Enroll with ACE-Net?

ACE-Net is a fee-based service. The maximum annual fee of $450 provides both the investor and entrepreneur with unlimited access to all ACE-Net services. Fees are waived for Alabama residents.
While the maximum that any ACE-Net Network Operator can charge is $450, some Network Operators are funded by states that compensate the fee for in-state investors or entrepreneurs.
Check with the local Network Operator for more information on fees and other services they may offer to the investor-entrepreneur community.

How Much Capital Can Be Raised Using ACE-Net?

A small, growing company can raise up to $5 million using ACE-Net. However, ACE-Net is especially helpful for companies seeking up to $1 million in financing.
Entrepreneurs can raise up to $1 million without having to register their securities offering under the SEC’s Regulation D, Rule 504, and by taking advantage of the Model Accredited Investor Exemption or similar state variation that have been adopted by a majority of states.
Entrepreneurs can also raise up to $1 million under the SEC’s Regulation D, Rule 504, by listing their securities offering registered with states.

For questions, comments, suggestions concerning this site contact the webmaster.