Latest Regulation A+ developments:
In June of 2015, Title IV of the JOBS Act opened the door for everyone, everywhere, to start investing in private companies in the growth stage. Regulation A+, or Reg A+, funding has distinct advantages for companies and investors. Take a look at some of the latest numbers when it comes to Regulation A+ funding adoption and use:
Here are the latest numbers on Regulation A+
- 45 companies have applied to the SEC to be Qualified for a Reg A+ offering
- 12 have already been Qualified by the SEC, of which:
- One has completed a $16 million offering, raised at a pre-money valuation of $300 million (minimum was $12 million, max was $23 million)
- One is underway with a $3 million minimum and $20 million maximum
- A third is underway with a $15 million maximum
- The average planned maximum capital raise is $23 million per offering
- The aggregate capital intended to be raised from these offerings is $1 Billion
There may be more companies with Regulation A+ funding underway in the TestTheWaters(TM) stage or in actual fundraising, that we are not aware of just yet. When you consider the potential of Regulaton A+ funding, which expands the investor pool from about 2 percent to all adults worldwide, the growth in funding potential can be seen.
I forecast that the rate at which filings are Qualified by the SEC will double by September 2016, and that there will be 12 Reg A+ offerings that finalize by September 2016, which will raise approximately $280 million.
As awareness of Reg A+ builds from a very low level today, this will provide a solid base for acceleration into 2017.
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.