At this point in time, only two Regulation A+ offerings have officially closed and considered major successes – but is that really the case? What actually defines Reg.A success?
Yes, Fundrise and Elio Motors are the poster children of Reg.A+ success, but there are many others in various stages of positive momentum where companies are currently raising money successfully. When a company does not reach their minimum investment levels and has to refund investor’s money from escrow, that’s what is considered a “failed” venture. How success is defined can take on many different meanings when it comes to Reg.A paper.
If a company wants to go from nothing to a listing on OTC or NASDAQ, is that a realistic option? Can someone go from playing high school ball to a major league all-star overnight? Well, I guess it can happen but I wouldn’t count on it. Expectations and reality are two important considerations when determining “success”.
If a company with a real product that’s generating revenue and needs a vehicle to raise money to further grow their business in a strategic manner, then yes, Reg.A seems to be a winner. You don’t need a stock ticker to be a success with Regulation A+. If a company gets marketing traction due to its Reg.A campaign, that’s a winner and at this point, there are many examples of businesses doing just that.
Then as the company grows, it can then decide if it wants to take on the next step by doing an IPO and a listing on a stock exchange. Many people on the outside looking in on the Regulation A+ market only consider a success as a listing. For those companies actually involved in the process, they know success comes in a variety of ways that may not include OTC (or any other “sexy” option).
Many companies are using Reg.A to raise capital to engage their customer base and work up to the point where they can attract larger institutional investors to perhaps become a fully-reporting company. It’s not cheap, but if a company doesn’t want to go that way, it doesn’t mean their Regulation A+ efforts have failed. Success in this industry is measured on a number of different levels, none of which require a listing on a major exchange.
With that in mind, then we can confidently say that in general, Regulation A+ has been a success so far for many companies at different levels. Companies just need to be realistic with their goals and hire industry experts with experience on generating customer engagement which is the most important part of a successful Regulation A+ offering.
If you are correctly marketing to your targeted audience and are generating excitement and capital from your crowd (who then will share in your company’s success as actual owners), then you’ll have a successful offering – and the RegA marketplace is reflecting that. Is going Reg.A with an “IPOtogo” right for you and your company? Find out today by contacting the Reg.A+ Funding Group for a no-obligation confidential consultation.