What is Regulation A+?
This is not a traditional IPO. While you are allowed to use a Reg A+ offering to take your company public and list it on the NASDAQ or the NYSE, that is not a requirement, and it is not the path most companies will take because the reporting costs from being public on the big boards are very high. Continue reading “Is Regulation A+ an Initial Public Offering – IPO?”
The high cost to complete an IPO onto a U.S. stock exchange – on average $2.5 million*, combined with the declining bank appetite for small-cap IPOs, is forcing many small companies to stay private longer. However, the public markets offer tremendous benefits for small-cap companies seeking to raise capital and grow their businesses. Fortunately, an IPO isn’t the only method for small companies to gain the benefits of a public market. Continue reading “Think an IPO is the only way to access the Public Markets?”
Recently, at a Crowdfunding conference in L.A., I met with three company CEOs all in the process of doing Reg A+ deals. When I asked them about their plans for secondary trading, I was surprised by the answer. All three responded with some variation of “we don’t plan on going public – we will just issue the shares, there won’t be a market.” Continue reading “Don’t Look Now: You’re Public”
As part of the JOBS Act, Congress and the SEC updated and expanded Regulation A (Reg. A) to reduce some of the road blocks to capital formation faced by startups and emerging growth companies. Many have argued that regulations implemented over the past two decades have removed the economic incentives for broker-dealers to engage in smaller offerings. Continue reading “The Road Not (Yet) Taken”
In June 2015, the SEC adopted amendments to Regulation A (“Reg. A+”), easing the burdens emerging and growth companies face in raising capital. With all of the recent excitement surrounding Reg. A+, we wanted to share some thoughts and what we’re noticing in these early stages. Continue reading “Regulation A+ Thoughts and Insights”
At its core, raising capital is about building relationships. Companies seek investors who clearly understand their stories, want to help them achieve their objectives and believe in their investment potential. Thus, companies may want to view Testing the Waters (“TTW”) in a broader context than just “how much can I raise?” TTW can be a part of a company’s overall investor relations strategy. It’s the courtship before marriage. Continue reading “How Warm is the Water?”
General solicitation, crowdfunding, and testing the waters have fundamentally changed the public offering process.
Raising capital online is emerging as an exciting, innovative new way for companies to access capital directly from investors.
Reg. A+ allows companies an easier, more cost effective route to going public by providing investors with unrestricted, freely-tradable shares, similar to a fully SEC registered offering. Continue reading “Liquidity: What you Need to Know Before Jumping In”