Reg A+ August: 152 Offerings Filed, 54 Qualified, Total Intent to Raise for all Offerings $2.5 Bill. Virtuix Completes Offering, BrewDog making moves.
Rod Turner August 9th, 2016
August Reg A+ Update: Regulation A+
The real intent to raise for Qualified offerings is $1.2 Bill, and for all filed offerings, it is over $2.5 Billion.
The rate of new Form 1-A filings was 17 for the month. The SEC Qualified three companies' Reg A+ filings in July – I believe this figure may understate the number of Qualifications.
We estimate that there have been four completed Reg A+ offerings to date.
BrewDog, a leading Scottish brewery and bar company, has opened their Reg A+ offering and is raising to $75 Mill with an attractively low minimum investment of two shares for $97.50. That will open up demand from a broad audience of consumer investors and craft beer enthusiasts. Investors are entitled to lifetime discounts on BrewDog products from their bars. This is an excellent example of using donation-style rewards in Reg A+. Over time, we will see more of this practice because it can motivate investors for appropriate products (check Kickstarter for many successful examples).
BrewDog has already raised a record $35 Mill through Equity CrowdFunding in the UK, with their most recent round closed in April 2016 for $25 Mill to fund their Scottish brewery. The company is opening its US operations in Columbus, Ohio. Their craft beers are leaders in UK markets. With 46,000 shareholders so far, BrewDog has an impressive number of brand ambassadors in place to spread the word on their behalf.
Virtual gaming company Virtuix completed their Reg A+ Offering on August 1st with $7.7 Mill of capital raised from 1600 investors, averaging $4,830 each. The company raised $1 Million on Kickstarter and $8 Mill from VC firms in their earlier financings. The Virtuix TestTheWaters(TM) campaign had earlier accumulated $10 Million in reservations.
For tips and advice on how to make your companies' Reg A+ Offering to succeed, click here.
For further details and context on the status of Reg A+, check our prior Reg A+ Updates.
Regulation A+ recap:
In June 2015, Title IV of the JOBS Act opened the door for main street (nonaccredited) investors worldwide to invest in private companies having headquarters in the USA or Canada. Regulation A+ funding offers cost-effective capital raising for mid-stage companies and mature startups and provides investors convenient access to company offerings at their issue price. Also advantageous: the shares are liquid post offering—summary of Reg A+ here.
Also, check the Manhattan Street Capital FAQ.
Please note that estimation and interpolation are required in compiling this update, especially for confidential filings. We do our best to interpret the information that is available in the most informative manner. To update us on your companies' Reg A+ offering success, email [email protected].
Some information herein is kindly provided by Vintage, a division of PR Newswire.
TestingTheWaters™ and TestTheWaters™are Trademarks of Manhattan Street Capital
Rod Turner
Rod Turner is the founder and CEO of Manhattan Street Capital, the #1 Growth Capital service for mature startups and mid sized companies to raise capital using Regulation A+. Turner has played a key role in building successful companies including Symantec/Norton (SYMC), Ashton Tate, MicroPort, Knowledge Adventure and more. He is an experienced investor who has built a Venture Capital business (Irvine Ventures) and has made angel and mezzanine investments in companies such as Bloom, Amyris (AMRS), Ask Jeeves and eASIC.
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