Manhattan Street Capital CEO Rod Turner was recently interviewed by Michael Lipkin of the San Diego Business Journal about the advantages to Regulation A+ funding and why the new route has such potential for non-accredited investors.
"Because Reg A+ is so new... most sophisticated investors are going to be hesitant... but Main Street investors have wanted to do this for a long time," Turner told Lipkin.
Reg A+ is attractive to investors because it allows any income level the opportunity to participate in investments, even if they don't meet the U.S. Securities and Exchange Commission requirements for "accredited" investors. Regulation A+ expands a pretty small group of investors, roughly 2% of the U.S. population, to 100% who could feasibly take advantage of growth-stage company offerings.
The advantages to companies who decide to go the Reg A+ route are also strong. Companies can tap a much wider pool of investors who in turn could become the company's largest brand ambassadors. Consumer-facing businesses will likely fare best in the Reg A+ space because of the excitement investors could harbor over products they can actually use, and share with their friends.
Jeremy Glaser, an attorney with Mintz Levin who was also interviewed for the article, summed up the advantages of Reg A+ and Title III funding by saying:
"If I was running a restaurant, I would probably go down this road...Talk about the ultimate loyalty program."
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 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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