Dalmore Group is a broker-dealer that provides tech-enhanced services for private companies that are looking to raise money online. Providing assistance to companies raising capital under  Reg CF, Reg A+, and Reg D, Dalmore reports more than 1000 companies have utilized their services, raising over $1 billion and accepting over one million investments. Dalmore promotes its ability for companies raising capital to host the service on their own domain. This has helped it carve out a sizeable portion of firms raising capital under Reg A+, an exemption that currently allows firms to raise up to$75 million. According to Dalmore’s website, it currently has a $4 billion pipeline of forthcoming Reg A+ offerings.

CI recently connected with Dalmore Group founder and Chairman Etan Butler, who shared his vision to grow Dalmore – including global expansion. Our discussion is below.

You will be spending the summer in Israel to work on connecting your ecosystem to the hot startup scene. What are you trying to accomplish specifically?

Etan Butler: Tel Aviv has emerged as a major global player in tech startups. In 2022, Israel’s high-tech companies raised close to $15B through 650+ deals. An impressive 92 unicorns have emerged from Tel Aviv’s innovation. Amazon, Apple, Intel, Samsung, and Google have R&D centers in Israel. As Dalmore is on a mission to create the most comprehensive, secure, frictionless, and cost-effective capital-raise technology globally, Tel Aviv is a natural place for us to establish our presence. We are expanding our tech operations, working to structure access to early-stage tech opportunities for US retail investors, and meeting with some of the fastest-growing AI and machine learning startups.

Dalmore is on a mission to create the most comprehensive, secure, frictionless, and cost-effective capital-raise technology globally

Dalmore is working to incorporate artificial intelligence (AI) in the process. How will this improve your services? Is this a benefit for investors? Issuers? Both?

Etan Butler: I am truly excited about the opportunities that artificial intelligence presents for both investors and issuers looking to raise capital. We believe at Dalmore that AI integration will significantly influence how the capital raising process functions, with potential benefits that are nothing short of transformative.

For investors, the integration of AI will offer unprecedented precision and depth in identifying investment opportunities. AI can analyze vast amounts of data, taking into account the investor’s preferences, risk tolerance, and past investment behavior, to recommend investment opportunities that align perfectly with their investment strategies. Furthermore, AI will provide real-time performance insights, enabling investors to make nimble adjustments as needed. This means more control, more transparency, and ultimately, more potential return on investment.

We believe at Dalmore that AI integration will significantly influence how the capital raising process functions, with potential benefits that are nothing short of transformative

Issuers looking to raise capital stand to gain immensely from this implementation as well. We believe in the near future AI will automate a significant part of the capital raising process, notably the due diligence aspect. It can rapidly process and analyze an enormous amount of information from company financials to market conditions. This not only streamlines the process but also helps issuers identify the right amount of capital to raise, the best valuation, and the most suitable investors. As a result, issuers can save valuable time and resources, allowing them to focus more on their core business activities. This doesn’t even touch on the marketing capabilities for issuers to take advantage of with AI. Imagine being able to put in your preferred demographic, investor type and personas and have a landing page, email drip campaign, and webinar script in a matter of minutes.

It is all happening now, and Dalmore plans to utilize AI as an opportunity for both investors and issuers.

We firmly believe that the implementation of AI will revolutionize capital-raising technology. It’s all about making the process more efficient, more accurate, and ultimately, more rewarding for all parties involved.

Your ambition is to be the “Stripe of Capital Markets.” How do you envision this will evolve over time?

Etan Butler: When we were building our latest suite of capital raise technology products, our CTO and dev team were literally praying nightly that we would get approved by STRIPE to include their payment processing services in our products. It took us over 6 months, but we were able to eliminate 3 steps in the checkout process with STRIPE compared to the alternative payment processing solutions.

Their product tech is as seamless as we’ve seen, and that’s super important to user experience and investor conversion. Similar to Link by STRIPE, which enables one-click checkout with facial recognition on mobile, investors in Dalmore’s issuer offerings will enjoy single sign-on across our entire platform.

We are seeing an increase in the number of CF portals, BDs [broker-dealers], capital-raise technology platforms, and blockchain and tokenization companies dying on the vine, struggling to raise additional VC money in this environment.

We are seeing an increase in the number of CF portals, BDs, capital-raise technology platforms, and blockchain and tokenization companies dying on the vine

Some were too early in their bet on tokenization and secondary trading. Others couldn’t deliver adequate product, or could not support infrastructure and innovation expenses at low enough processing margins to be sustainable to more sophisticated and cost-conscious issuers. So we will see a consolidation in the sector. The few who are truly experienced, tech-advanced, cost-effective, well-funded, and who offer a well-trodden regulatory-compliant path to issuers will stand.

Where is Dalmore today? You are big in Reg A+. You are active in Reg D and Reg CF. What type of deal flow are you seeing?

Etan Butler: Of the 300+ Reg A+ issuers that Dalmore has onboarded to date, over 70 are fractional share series issuer platforms. So we are seeing a steady rise in series issuers looking for deep experience and cutting-edge technology.

With the launch of our latest suite of cap raise products and the scaling of our team, we are now onboarding a fast-growing number of Reg CF and Reg D issuers. Some of whom license our white label APP, which is designed for serial issuers across multiple exemptions with a unified investor dashboard. All of whom enjoy $0 per investor tech/subscription fees (compared to $30-$45 elsewhere), 2.89% CC processing fees (compared to 4-5% elsewhere) and 0.89% ACH processing fees (compared to 2-4% elsewhere). These are alarming reductions in cost for issuers and their investors and we believe is the only sustainable pricing model in the industry.

we are now onboarding a fast-growing number of Reg CF and Reg D issuers. Some of whom license our white label APP, which is designed for serial issuers across multiple exemptions

Do you plan on expanding your services into UK/Europe? Asia? Elsewhere?

Etan Butler: Yes. With our goal of developing the leading capital raise platform globally, our development roadmap includes offering technology workflows according to the regulatory requirements of issuers in multiple international jurisdictions.

our development roadmap includes offering technology workflows according to the regulatory requirements of issuers in multiple international jurisdictions