First Reg A+ IPO to the NASDAQ announced
NewsBeat Social is raising between $7mill and $50mill in their Regulation A+ IPO. NBS has accumulated 20,000 reservations from their informal TestTheWaters(TM) marketing campaign.
NBS is a fascinating case because this company truly appeals to consumer investors and has a huge social media fan base. They are building a new generation of social media broadcast news reporting with their unique internally produced 60-second video news posts.
NBS has been promoting their offering through notices attached to their news posts to their 3.6 million Facebook fans worldwide and doing so with remarkable cost efficiency. This is the kind of company that fits Reg A+ very well indeed.
I expect that many of their investors will come from outside the USA to reflect the strong presence NBS and Facebook have worldwide. While many US investors are bombarded daily with attractive alternatives, investors outside the USA have fewer attractive options.
NBS may appear to be pretty early because they have chosen to focus on rapidly scaling their news production business first, then on revenues. The company has been in development for years and has solid customer traction. On a visit to their offices earlier this year, I saw an NBS news video that had accumulated over 300,000 shares by mid-afternoon of the day it was posted. The management team is seasoned (Founder and CEO: Stanley W. Fields, President: Geoff Campbell) they have a clear strategic vision and the right skills to build to a serious scale. In my view, NewsBeat Social is at the leading edge of a significant shift in the consumption of news coverage to social media and far more established than it may seem at first glance.
The NBS investment offering has gone live - 20,000 TestTheWaters(TM) Reservations is a good start. I have a hunch this offering will go very well.
Industry pundits, myself included, have used qualified terms like Simple Public Offering(TM) and "Mini IPO" for Regulation A+ IPO potential in the last year. We are now seeing one of the more valuable aspects of Reg A+ emerge. It turns out that Reg A+ is rather an excellent way to conduct a complete Small Cap IPO to the NASDAQ. Let's keep our eyes on the NYSE ...
For the conflict of interest reasons, please note that I made a reservation in the NBS TestTheWaters(TM) campaign and am an investor in the company's Reg A offering. Also, note that I do not recommend that any investor buy any particular stock, NewsBeat Social included. If you are an investor, I recommend you seek advice from your Financial Planner in selecting stocks to buy.
Simple Public Offering(TM) and TestTheWaters(TM) 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 raising capital using Regulation A+. Turner has played a vital 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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