Attracting capital remains challenging for most investors due to regulatory burdens, higher capital costs, and the high risk, high return nature of venture capital. Often, capital projects won’t get off the ground unless projected returns are above market rates. This “mini-IPO” or “on-ramp to IPO” allows investors to raise up to $50 million in a 12 month period from the general public, with streamlined initial and ongoing compliance costs. This means a greater pool of investors without all of the costs of a traditional IPO or without the need to have a predetermined list of investors.
Davis & Kuelthau is at the forefront of Regulation A+ and its trending benefits for clients. It is estimated that less than $500 million has been raised using Regulation A+ in 2015 whereas in 2016 alone more than $490 billion in mortgage loans had closed. We have created this resource page to share articles, seminars and other materials to provide you with the tools needed to utilize the Regulation A+ rules to raise capital from accredited investors and institutions in addition to more than 75 million non-accredited investors.