They say imitation is the highest form of flattery. If something isn’t working, why would anyone want to copy it? If that is indeed true, Regulation A+ offerings must be working, because one of the biggest traditional crowdfunding platforms has just opened the door to equity crowdfunding – proving once again what we’ve been saying for months: IPOtogo’s (Reg.A+ deals) are here to stay!
Rewards-based crowdfunding giant Indiegogo has now formed a partnership with MicroVentures to launch their first four equity crowdfunding deals. With Indiegogo projects having raised over $1 billion dollars from approximately 8 million people, their move into Reg.A means we are continuing to see more niche platforms for more niche industries, just as we predicted earlier in the year. They now are joining non-accredited crowdfunding platforms such as StartEngine and Wefunder as the places to go to list your project for Reg.A equity financing.
But wait, let’s not lose sight of the single biggest truism that sets a successful campaign apart from one that fails – the strength of the project itself! It doesn’t matter what platform you turn to: a bad deal is a bad deal. What tends to be forgotten is that specialization is key in this marketplace, and experts who actually know Regulation A+ understands exactly what it takes to make a project successful.
More equity crowdfunding platforms are sure to spring up over time, and almost every one that’s successful is going to specialize in a certain market. They’ll be one for commercial real estate, one for transportation, one for healthcare, and maybe even one for the more non-traditional investments such as the growing cannabis market. IndieGoGo sees this trend and is going all-in on it. (as should you).
What this all means is if you’re trying to raise money via a time-tested Private Placement Memo (PPM) or even through a traditional IPO, you’re trying to use a fax machine instead of high-speed internet. Get with the program! With Regulation A+, we are looking at a whole new dynamic for companies to raise money through accredited and non-accredited means. Take for example, companies such as Energy Hunter, HomeUnion, and Myomo, all of whom expressed their intention to list their common stock offerings on the NYSE or NASDAQ once live – you can certainly think big with Regulation A+!
By leveling the playing field between venture capitalists, angel investors, and the everyday common folk, equity crowdfunding has been a boon for small businesses and startups searching for the capital they need to compete and grow like never before. Little by little, Regulation A+ offerings are showing they have a place in the equity crowdfunding landscape, and moves like IndieGoGo’s helps prove the case we’ve made from the beginning that Reg.A+ is the future of capital raising. Period! It’s your time now, so contact us for a confidential no-obligation consultation to see if Reg.A makes sense for you and your business goals.