REG A+ STATISTICS
According to the SEC, there were 1,223 Reg A+ offerings in 2016 for a total value of $4.36 billion. This represents an increase of 19% over 2015. The average offering size was $3.9 million. In 2017, there were 1,688 Reg A+ offerings for a total value of $7.84 billion, representing an increase of 31% over 2016. The average offering size was $5.5 million. These figures include both equity and debt offerings. Equity offerings accounted for 85% of the total value raised in 2017 (not including real estate). Debt accounted for 15% of the total value raised in 2017 (not including real estate). The SEC defines a Reg A+ offering as an unregistered offering that is exempt from registration requirements by meeting certain basic criteria. To learn more about Reg A+ Offerings see below.
REG A+ FEATURED DEAL
RadarUSA
Invest in the growing demand for smart home and community security systems.
The growth in the home security systems market is creating demand for more sophisticated security solutions. RadarUSA is a collaborative security platform, that connects citizens, police, and public institutions in a virtual community powered by artificial intelligence and connected by Wi-Fi. Citizens are connected using Wi-Fi to their virtual community and can communicate through their mobile device and existing infrastructure to collaborate and reduce crime.
RadarUSA’s collaborative security solution empowers communities with AI-powered digital surveillance connecting police, private security and neighbors to be proactive, not reactive, in responding to threats. This enables a truly community-based networked approach to security.
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Legal Counsel: CrowdCheck Law LLP
Accountant/Auditor: Dale Matheson Carr-Hilton Labonte LLC
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REG A+ DIGITAL MARKETING HIGHLIGHT
Public Yield Capital
Public Yield Capital is a leading investor marketing partner specializing in equity crowdfunding to support innovative companies raising corporate awareness and their capital.
Investing has been reserved for the wealthiest Americans only with no option for the everyday investor to benefit from rising startups. Since 2012, Regulation A+ presents an exciting opportunity for companies to raise capital in the US and widens the net significantly to who can invest in them.
The United States Government created the JOBS (Jumpstart your Business Act) in 2012. Part of this Act was called Regulation A+, allowing companies to raise between $3M and $75M.
Since Regulation A+ was passed, it has significantly opened up the investment landscape to a broader range of retail investors. Previously, investors were excluded from opportunities due to their assets or income levels not qualifying them to invest. With Reg A+, investors can invest much smaller amounts, receiving a piece of ownership for the company, usually in shares. Depending on the success of the company and its potential to go public or be sold, they can then make higher returns on their investment.
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REG A+ FAQs
What are the three biggest risks to my Reg A+ succeeding?
The audit is delayed and costs far more than expected. Delayed audits are the single biggest logistics reason for Reg A+ offerings to fail. Using big name auditors causes huge costs and they are rarely sensitive enough to the urgency that a small client company has. We recommend that you use high-quality mid-sized audit firms that are more likely to treat your company as a priority and stick to their price.
Your company is not appealing enough to consumer investors.
Weak or inefficient marketing. Excellent marketing is required and the agency doing the work must genuinely believe at the outset that they can deliver low-cost results. If an agent expects that they will have to spend $12 for every $100 of investment money their client receives, then the whole offering will be far too expensive. An agency that believes they can do all that is needed for $3 per $100 of capital raised is far more likely to deliver cost-effective results.
Which shareholders get liquidity first in a Reg A+ Offering?
There is no special sequence, no preference. The company itself, and any selling shareholders in an offering are made liquid on a pro-rated basis throughout the offering. So, for example, if an offering is ended at 92% of the maximum goal, then all the selling shareholders in the offering will have sold 92% of the shares that they intended to sell in that offering.
Episode 3 - Costs Associated with a Reg A Offering?-Youtube
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CONSIDERING A REG A+ OFFERING?
Entoro Securities is a FINRA-registered Broker-Dealer in all 50 states, Puerto Rico, and the District of Columbia. The top choice for a Reg A+ broker-dealer and will answer all your questions. We support Issuers through the entire Reg A+ process from pre-filing preparation, to SEC review, marketing selection, and completion of the offering. Call Entoro today and let our team show you how to Reg A+ the right way.
ENTORO REG A+ CONTACTS
Morgan Sills
Director – Investment Banking
Entoro Capital, LLC
D: +1 832.987.4051
E: msills@entoro.com
Christopher Luce, CAP
Managing Director – Reg A+ Sales
Entoro Capital, LLC
D: +1 832.987.3984
E: cluce@entoro.com
Schedule a Free Consultation
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