TransparentBusiness Raises Second Round Through Initial Private Offering

By Dan Anderson ● Feb 3, 2020
  • TransparentBusiness announced it successfully completed its second round of financing bringing the total amount raised to more than $6 million

TransparentBusiness — a Top People Management Solution company — announced it has successfully completed its second round of financing bringing the total amount raised to more than $6 million. TransparentBusiness’ investors include current and former executives of Morgan Stanley, Merrill Lynch, J.P. Morgan, Stifel, Bank of America, Barclays Global Investors, UBS, Wells Fargo, Goldman Sachs, Citigroup, Trust Company of the West, Deutsche Bank, and Accenture.

Telefónica invested in TransparentBusiness through Wayra.

“In a world of continuous change, TransparentBusiness is not only transforming the way we work but also demonstrates that technology can respond, positively, to the challenges posed by the Future of Work by making the lives of people be easier,” said Wayra director Paloma Castellano.

Rather than seeking funding from venture capital funds, TransparentBusiness decided to raise funds from individual investors using new SEC Rule 506(c) — which allows for “general solicitation and advertising” of the investment opportunity. 

“Only 2% of VC money goes to women… By offering our equity directly to individual investors, we’ve been able to overcome the VC gender bias,” explained TransparentBusiness Co-Founder, President & Chairwoman of the Board Silvina Moschini. “Our objective is to make TransparentBusiness synonymous with the category of Business Transparency, globally.”

TransparentBusiness had advertised its Private Offering in major publications, indicating that the investors in the current round have a chance for the ROI exceeding 90,000%.

TransparentBusiness Chief Investor Relations Officer Andrew Winn pointed out that “Practically every caller was very skeptical as such returns do sound ‘too good to be true.’” But Winn noted that the company was able to present to them a strong investment case of why TransparentBusiness may become one of the success stories of the IT sector.

“Rule 506(c) allows for, essentially, Initial Private Offerings,” stated TransparentBusiness securities attorney Richard Devlin. “It’s so new, we know of no company that has tried advertising on a significant scale. TransparentBusiness is the first company I know which advertised its Initial private offering in the Wall Street Journal, Investors’ Business Daily, Bloomberg, and other major media. That allowed us to provide access to our pre-IPO stock to individual investors.”

TransparentBusiness entered into a number of agreements with companies like Google, Microsoft, SAP, Cisco, ADP, IDB, and Facebook. And legislators in 33 states have launched bills that seek to make such transparency mandatory for government contractors and put the end on the current practice of contractors self-certifying their billable hours — which is a practice that results in billions of dollars of taxpayers’ money being lost to overbilling each year. 

Now TransparentBusiness is accepting applications from investors interested in buying equity in the company for the third round of financing. The third round is scheduled to start on May 1, 2020 at $2 per share and is limited to 5 million shares out of 100 million authorized shares.