Providers of equity crowdfunding are excited to announce their kickoff pricing along with the official release of Regulation A+, which allows expanded options for small companies seeking access to capital.
Crowdfundraiser.com is excited to announce the official release of Regulation A+ crowdfunding kickoff pricing for new companies seeking capital. As of June 19, 2015, equity crowdfunding for both accredited and non-accredited investors is now legal. The deals that will begin registration with the SEC today will take a few months to completely cycle through, but the law is now fully in place. The new rules for Regulation A+ of the JOBS Act allow for capital raising, with some stipulation, of up to $50,000,000 from both accredited and non-accredited investors for private companies.
“We’re already seeing a great deal of interest from both investors looking to invest and companies seeking capital through the Reg A+ rules,” says Jake Durrant, Managing Director for Crowdfundraiser. “We’re not expecting this interest to abate as the new tools at the disposal of small business represent one of the greatest opportunities for small business capital formation in a generation.”
While Regulation A+ is now officially out, it doesn’t mean the industry is free and clear from typical growing pains. For instance, the amount being charged by attorneys, portals, investment banks and consultants ranges widely. “The costs people are charging for some for some of the upfront work on these deals is often unreasonable,” says Durrant. “It’s difficult to charge $100,000 in legal and auditing costs to a company that may have little to no revenue and just an idea,” he says.
The company has tapped a large pool of existing investors to help solve this problem, particularly for the most promising opportunities. Crowdfundraiser boasts investors who’re highly interested in the right deals. “We’ve investors interested in paying for the entire process, including the requisite company audit and costs of filing the Form 1-A with the SEC,” says Durrant. “Not every candidate will be accepted, but our investors are certainly interested in funding the right Reg A+ opportunities,” he says.
Some of the best equity crowdfunding deals are expected to have a similar story, look and feel to the most successful crowdfunding campaigns available on sites like Kickstarter and Indiegogo. “We’re still in the beginning stages of a new and rapidly-growing industry,” Durrant says. “The opportunities available are expected to only go up from here.”
Founded in 2014, Crowdfundraiser provides expert guidance for companies seeking to navigate the waters of equity crowdfunding. With a handful of in-house and experienced securities and transactional attorneys, the company has the resources to assist any company seeking access to capital through equity crowdfunding and Regulation A+. The company includes experienced investment bankers as well as those familiar with microcap stocks, which should provide timely assistance for crowdfunded companies that need future liquidity for investors through the public markets. The company can be followed on Twitter or their equity crowdfunding blog.