Entrepreneurs who want to raise $1 million to $10 million--but find the cost of doing so through traditional securities markets a little rich for their blood--now have another option.
"We view ourselves as an incubator where small businesses can grow with us and then go on to [a larger] exchange," says Nimish Gandhi, president and founder of Niphix, a Peoria, Illinois-based capital market started in 1993 that enables business owners to sell shares directly to investors via an electronic trading system.
Unlike Nasdaq, where Gandhi says it could cost hundreds of thousands of dollars to make an initial public offering (IPO), an entrepreneur can do an IPO for as little as $20,000 on Niphix.
Niphix targets small companies valued at a few million dollars, according to Gandhi. All investors are accredited and range from institutions and venture capital fund managers to wealthy individuals with at least $200,000 in annual salary or a $1 million net worth.
Any business in the United States or Canada can issue an IPO on Niphix. For more information, call the company at (800) 780-6060 or (309) 674-0300 or visit the Web site at http://www. niphix.com