Recent Market Metrics Showing Early Positive Signs for Regulation A+ to Raise Growth Capital
In this discussion with Rod Turner, Founder, Chairman and CEO of Manhattan Street Capital, we discuss the recent metrics in the Regulation A+ market for raising capital for your private company.
Patrick: What are some of the recent metrics in the Reg A+ market?
Rod: Reg A+ went live at the end of June in 2015. There’s a lead time in getting transactions done. The first offerings went live at the end of October 2015. I did an update in Forbes recently assembling all the metrics on the status so far. We’ve had 32 companies complete successful offerings since then. That means to me, from November 1st of 2015 through the period I looked at, which was the end of February. We’ve had 32 companies complete successful transactions in that time. That’s pretty good. That’s about 25% of the companies that went to bat, that were qualified by the SEC, meaning they persisted through the process, which many companies did.
Patrick: It’s still smaller in terms of the number of companies in the IPO market, and then the traditional private equity market.
Rod: Yes, because it’s the early days.
Patrick: That’s still pretty good. Thirty-two over a few months is nothing to sneeze at.
Rod: It’s about two companies a month raising an average of $32 million per month.
Patrick: That’s pretty good for private equity.
This is Patrick Henry, CEO of QuestFusion, with The Real Deal…What Matters.