Sunday, February 14, 2016

Who's raising money? Follow Form D filings at SEC

Private companies that have attracted capital by selling securities may not disclose who their investors are, but the filings do list the total amount raised.

Who's raising money? Follow Form D filings at SEC


Anyone who follows public companies should be familiar with the Securities and Exchange Commission’s EDGAR online database.

Earnings reports, acquisitions and stock offerings are all disclosed in various filings. But since mid-March, the online system has also been providing more information about the financings of privately held companies.

To protect investors, federal and state securities regulators require any company selling securities privately to register with them or to notify them that their offering is exempt from registration.

Companies raising money privately may file notice of an exempt offering using the SEC’s Form D. While companies have been filing them on paper with the SEC for years, it’s only been since mid-March that the agency has required that the form be submitted electronically, making it available over EDGAR for the world to see.

The capital raised by companies filing a Form D may come from venture capital or private-equity firms, or wealthy individuals. And the sums can be quite large.

A recent report by the SEC’s Inspector General’s office said 20,021 Form D filings were made in 2008. It estimated that those exempt offerings raised $609 billion of capital last year.

Among the local firms that have filed Form Ds recently are drug developer Avid Radiopharmaceuticals Inc., team-apparel maker Boathouse Sports, medical-device maker Neuronetics Inc. and Internet video provider RedLasso Corp.

Form D lists a company’s address, executives and directors, the industry sector in which it operates, and a range of its annual revenues. But the meat of the form is on Line 13 where a company discloses how much it raised.

The most recent Form D filing I read for a local company was by Xanitos Inc., of Radnor. Organized in 2008, the company is described as being in the business-services industry with revenues of $5 million to $25 million.

Xanitos’ Form D states it raised $4,175,525 from 17 investors in late July. I’d never heard of Xanitos, but I know of its CEO, Graeme Crothall, a serial entrepreneur who’s built three hospital housekeeping services companies.

I couldn’t reach Crothall by phone, but the Xanitos Web site describes the story of how he’s trying to build his fourth firm focused on keeping hospital rooms clean.

Inquirer Columnist
We encourage respectful comments but reserve the right to delete anything that doesn't contribute to an engaging dialogue.
Help us moderate this thread by flagging comments that violate our guidelines.

Comment policy: comments are intended to be civil, friendly conversations. Please treat other participants with respect and in a way that you would want to be treated. You are responsible for what you say. And please, stay on topic. If you see an objectionable post, please report it to us using the "Report Abuse" option.

Please note that comments are monitored by staff. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable. Personal attacks, especially on other participants, are not permitted. We reserve the right to permanently block any user who violates these terms and conditions.

Additionally comments that are long, have multiple paragraph breaks, include code, or include hyperlinks may not be posted.

Read 0 comments
comments powered by Disqus
About this blog
Mike Armstrong blogs about Philadelphia corporations and business-related topics. Contact him at 215-854-2980. Reach Mike at

Mike Armstrong Inquirer Columnist
Also on
letter icon Newsletter