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Chapters:
- Why Reg A+ is remarkable
- Advantages of Reg A+ compared to an S-1 IPO
- How to cover the marketing costs from the offering proceeds
- Indirect advantages of a Reg A+ offering
Disclaimer:
The content in this webinar is not and shall not be construed as investment advice. This information is meant to be informative and for general purposes only.
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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.
www.ManhattanStreetCapital.com
Manhattan Street Capital, 5694 Mission Center Rd, Suite 602-468, San Diego, CA 92108.
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So Reg A+ has gradually, in the early years, gradually built and become now a significant factor with a lot of innovative things happening around it because it's facilitating offerings that you couldn't do before, which I'm gonna get into with the series offerings discussion. Advantages of a Reg A+. It's less expensive to do than other things like an S-1 IPO and it's more versatile. There's a lot of, there's a lot of new things that you can do that weren't possible before. It costs a lot less than a full bore. S-1 IPO costs the fact that it's the opposite of a, of a regular IPO where you have a quiet period and you can't do anything in the way of marketing that's unusual. It's the opposite. You are required to market your company to raise money successfully, you know, via the expected means, especially social media advertising.
It's faster and simpler. I'll get into the schedule later, but the SEC journey is a lot simpler. So in comparison to a S-1 IPO Filing with the SEC or Reg A+ is probably 10 or 15% of the workload, and it happens a lot faster. I mentioned that you can change the share price and the valuation of your company as you go, and you are allowed to, I'll look at the questions Leah. You are allowed to set a low minimum or a zero minimum raise. So you can draw down investment money from escrow and issue the shares to the investors on an ongoing basis. And if you set up the Reg A+ properly, you are allowed to use the proceeds of the raise to continue to promote the raise. So that makes it much more efficient. Having a high minimum money makes sense if you're buying an asset.
And that's the purpose of the raise. If you're buying a building for $12 million and you probably need an escrow and a $12 million and it's gonna be expensive cuz you have to sell out all the, all the money to reach that 12 million before you bring in dollar one. So it's better to have a low minimum. It's one of the lovely things about online raising is that a lot of the investors become brand ambassadors. They become fans of your company. If they already are fans, then that's so much better again, right? Because they'll, they have a high propensity to invest and you're getting better valuation than you would get in a Reg D or an Angel or the venture investment. And you are providing liquidity to the investors at one level or another, depending on the approach you choose and you maintain control of your company when in comparison to a venture capital investment, you don't put yourself at risk of being booted from your own company. There are many other advantages, but that's a good summary of them.
THIS TEXT TRANSCRIPT HAS ERRORS IN IT THAT WERE CAUSED BY THE SPEECH TO TEXT CONVERSION SOFTWARE WE USED. DO NOT DEPEND ON THE TEXT TO BE ACCURATE. WATCH THE RELEVANT PARTS OF THE VIDEO TO MAKE SURE YOU ARE PROPERLY INFORMED. DO NOT DEPEND ON THIS TEXT TRANSCRIPTION TO BE ACCURATE OR REFLECTIVE OF THE STATEMENTS OR INTENT OF THE PRESENTERS.
