Cd'A firm helping Idaho businesses access local funds

PennStarter is taking its Web portal in a new direction.

The online investment division of the 88-year-old Coeur d'Alene broker-dealer Pennaluna & Company is now helping local businesses raise money from Idaho residents through a relatively new exemption.

This exemption allows Idaho companies to raise as much as $2 million from Idaho residents - including friends, family and community members - through public advertisement directed to Idaho residents. Another unique element of this process is that investors do not necessarily have to be accredited to invest.

"Our community is undergoing a push with local organizations like Innovation Collective to create an environment where a good idea can become a great company that can thrive right here in Idaho," said PennStarter's Shawny Le in a press release.

"I see receiving funding from the community and the community members reaping the financial rewards of success as being a part of that circle."

The firm spent months working with local startup Bright Flash Development, Inc. and securities attorney Tyler B. Wilson, Esq. to navigate Idaho state law and comply with the Idaho Department of Finance's rules regarding the exemption.

Companies can work with PennStarter at any stage in their development. Although the first Idaho listing on the PennStarter website is a startup, company representatives are working through the process with a second Idaho corporation which boasts almost 20 years in business.

It is selective though, with only a small percentage of companies making it through the due-diligence process. Because of the inherently risky nature of investing in small businesses, the PennStarter team does thorough checks into management background, product or service and longterm business plans.

Another unique feature of the PennStarter model is its ability to help companies become publicly listed, should they choose to do so, supplying investors with a potential exit strategy.

"Many people don't know that for the right company it's possible to become publicly traded at a fairly early stage," said Pennaluna & Company President Ron Nicklas, in the press release. "There are positives and negatives to doing so, but many investors like the idea that the company they are investing in is working toward this goal."

PennStarter, www.pennstarter.com, is currently accepting company submissions from throughout the state of Idaho.

Info: shawny@pennstarter.com or (800) 535-5329.