Eugene, Oregon based Arcimoto is the latest company to use Regulation A+ as a means of equity crowdfunding. Their main product is their “Fun Utility Vehicle” (FUV) which is an electric powered three-wheeled vehicle that can go from 0 to 60 mph in 7.5 seconds with a range of approximately 70 to 130 miles. With a base price of $11,900 per vehicle, Arcimoto has set their sights set on being listed on the NASDAQ. The company is currently producing their first units by hand and have targeted the West Coast for their initial sales efforts. Plus, they have already raised $10 million prior to their Reg.A+ offering, so their momentum looks strong.
The company’s strategy is keeping things simple. As rideshare companies such as Lyft or Uber become more mainstream, Arcimoto believes the trend for many car owners is to move away from owning multiple large vehicles and instead transition into the two-seater economy friendly vehicle that Arcimoto offers. Their goal is to raise $30 million with their Reg.A+ deal with a pre-raise valuation of $83.4 million. And how do they intend on being successful? Social media online marketing, which is one of the greatest features of a Regulation A+ offering – the ability to market an offering to both accredited and non-accredited investors in addition to turning existing loyal customers into shareholders as well!
Arcimoto’s deal is also being marketed via a syndicate of broker-dealers by their underwriter, WR Hambrecht, who’s inviting institutional investors to test out and drive the FUV, further enhancing its social media appeal. Hambrecht has already been quite successful with the Google IPO. They seem to know what they’re doing. The principals involved with Arcimoto are all taking modest salaries and team members have been granted stock options in the company, which may be a good indicator of how the company has made such great strides in such a short period of time without burning through a lot of money. All in all, Arcimoto seems to be set up as another Regulation A+ winner, and all signs point to an eventual listing on the NASDAQ exchange, similar to the success of the Myomo Regulation A+ offering listed on the NYSE.
Arcimoto’s CEO, Mark Frohnmayer, seems to understand Reg.A+ pretty well as he stated:
“Regulation A+ is the missing link in capital formation. It gives a lot more confidence in your fundraising potential and truly opens up the marketing opportunity to reach out to investors. For the first time in 15 years small companies can now do an IPO”