Regulation A+ & Crowdfunding
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Everyone has heard of the success stories with Kickstarter, Indegogo and other crowdfunding sites over the last several years. For the people that have been keeping up and staying in the loop with these various new sites, its no doubt that you are witnessing changing times on how companies get funded. However, although successes of Kickstarter and others in the marketplace have changed traditional fundraising, it still left a gap in the capital markets for Equity Raises in startups and emerging growth companies to participate in this phenomenom.
Recently The Securities and Exchange Commission adopted final rules to facilitate smaller companies’ access to capital. The new rules provide investors with more investment choices. The new rules update and expanded Regulation A, an existing exemption from registration for smaller issuers of securities. The rules are mandated by Title IV of the Jumpstart Our Business Startups (JOBS) Act. The updated exemption will enable smaller companies to offer and sell up to $50 million of securities in a 12-month period, subject to eligibility, disclosure and reporting requirements.
This is going to be and has already started to become a game changer in the how capital is raised especially when you also consider that over 95% of business plans that are received by accredited investors and VCs are rejected. It's no surprise that entrepreneurs have been looking elsewhere for funding and having the ability to raise capital via crowding funding methods along with a Regulation A+ Offering is going to change the course for many. It also provides an exit strategy for investors which is always a common question asked by prospective investors.
Airam Capital can take your small to mid-sized company, analyze its merits, and offer a turnkey solution to rasing the capital that you need and require for your Company to successfully execute your business development and growth. 2015 saw over $30B in capital raised through Crowdfunding.
Predictions for 2016 and Beyond
This is mostly more of a certainty rather than a prediction but with the groundbreaking success with Companies such as Elio Motors, there will be many more Regulation A+ Offerings to come that will follow their footsteps. In fact there are multiple other Reg A+ offerings already in various stages of SEC review and approval, 2016 is shaping up to be the year of the Reg A+ offering. It has been estimaed that in the next 10 years, the crowdfund market will boom to a $300B a year industry.
Airam Capital has alignied ourselves with groundbreaking companies like Manhattan Street Capital who is the #1 growth capital marketplace for mid sized companies and mature startups.
Contact us to find out how Airam Capital can make your next Crowdfunding project a successful one through a Regulation A+ Offering. Our team or professionals will take from the beginning of analysing the merits of your Business Plan and funding requirements, to preparing your Regulation A+ Offering for SEC approval, to marketing your Crowdfund Campaign so that you can achieve your funding goals.
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Crowdfunding Comparison Chart
Title III Equity Crowdfunding Explained - White Paper
Title II & III Equity Crowdfunding Explained - White Paper
Crowd Fund Regulation CF Explained - White Paper
I am Interested in Regulation A+ Crowdfunding as an Investor and/or Issuer.
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