We provide real world, effective Regulation A Funding advisory services for startup, growth and acquisition financing

2016 Predictions for Regulation A+ Crowdfunding

Crowdfund Insider recently published an interesting article where they made 5 predictions as to what will happen with Regulation A+ crowdfunding in 2016. Here’s our take on each and every one of them:

cfpredThe first 10-20 multimillion dollar Reg A+ offerings will close.
They better! People need to see something actually working before they feel safe in something new. It’s hard pushing a rock up a hill, but they roll down with little friction after that – and that’s exactly what we are experiencing with Reg. A.

New industries will awaken to the potential of equity crowdfunding
This is probably very true as well since we at the Reg. A Funding Group have already been in contact with ventures in the sports, energy, transportation, and especially biotech, all of which seem receptive to at least listening further to the opportunity. All it will take is a few closings as in the point#1 above to watch these entities take action to move forward with Reg. A.

In the 2nd half of 2016 more tech companies will pursue equity crowdfunding.
Agreed – but why wait so long? We believe we’ll be seeing tech companies looking into Reg. A as the norm way before the 2nd half, but one way or another, the train is arriving at the station.

Title III equity crowdfunding will launch to fanfare and adjustments.
“Predicting” fanfare and adjustments is sort of like “predicting” Starbucks will sell coffee. There are always adjustments and fanfare to new rules and regulations, so this is about as definite a prediction you can make. Nonetheless, these changes almost certainly will advance the cause and make it easier for companies to take advantage of Regulation A+ crowdfunding and actually CLOSE deals!

Low-cost digital tools will emerge to help create and execute campaigns
This is where you will see the ancillary explosion in the Reg. A+ industry. Remember the first millionaires from the Hoover Dam Project were those selling shovels. One by one, new technologies will emerge to move each project further to success – there is no doubt about that either.

IPOs are so 2000s! That’s why we affectionately call the entire Regulation A+ crowdfunding process an “IPO to go”. It’s here. It’s for real… and companies would be smart to get on the bandwagon to reap the rewards of this program that we all will most definitely see in 2016 and beyond. Want more info? Contact us today for a no-cost confidential consultation!