By Rod Turner is the founder and CEO of Manhattan Street Capital, CrowdFundBeat Guest Editor,
In June 2015 Title IV of the JOBS Act opened the door for main street (non accredited) investors worldwide to invest in private companies having headquarters in the USA or Canada. Regulation A+, or Reg A+, funding has distinct advantages for companies and provides investors democratic access to private companies at the issue price. Take a look at some of the latest numbers below:
60 companies have applied to the SEC to be Qualified for a Reg A+ offering, up from 45 one month ago – one new application every other day. The rate of new filings has increased, and the number of service providers offering legal services to assist has also increased.
The aggregate capital intended to be raised from these offerings is $1.3 Billion, up from $1 Billion a month ago.
The average planned maximum capital raise is $23 million per offering.
12 Regulation A+ Form 1-A filings have been Qualified by the SEC.
We estimate that six Reg A+ offerings are underway, accepting investments.
One Qualified Reg A+ converted to a full S-1 IPO on the NASD, underwritten by WR Hambrecht, ticker will be HDCC
A $5mill offering by Groundfloor Finance Inc. Real Estate Lending marketplace was filled by FinTech Venture Fund
One Reg A+ offering has finalized: Elio Motors has completed their $16.9 million offering, raised at a pre-money valuation of $300 million. They had over 6,500 investors. Elio Motors listed on the OTCQX on Feb 24th, ticker is ELIO. This stock Issued at $12 per share, it traded up to approximately $60 per share on the 4th and 5th day after opening on the OTCQX, and closed Tuesday March 9th at $34.90/share.
It is not a requirement of Regulation A+ to list a company on a market such as the OTCQB or OTCQX.
Note that the TestingTheWaters(TM) process allows companies to informally market themselves to assess possible investor interest prior to starting a Form 1-A application with the SEC.
Rod Turner is the founder and CEO of Manhattan Street Capital, helping successful mid-stage and high growth startups to raise the capital they need to scale faster under the newly-approved criteria of Regulation A+. Turner has played a key role in building six successful companies including Symantec/Norton, Ashton Tate, MicroPort, Knowledge Adventure, and ArtSlant, Inc. He is an accomplished investor who has built a Venture capital business (Irvine Ventures) and has made angel and mezzanine investments in companies such as Bloom, Amyris, Ask, and eASIC.