What is Regulation A+?
Regulation A+ (or “Reg A+”) is a new way to raise capital created by the Securities Exchange Commission (SEC). Effective March 25, 2015, SEC rules allow companies to test the attractiveness of their company offering to the investor market. This is the "Company Offerings" page on Manhattan Street Capital.
As of June 25, 2015, companies are allowed to register a Regulation A plus offering with the SEC and, when ready, raise capital in our marketplace and others. We are the first Regulation A+ marketplace. Manhattan Street Capital and FundAthena, a division of Manhattan Street Capital, will only fundraise for companies that we have reviewed and approved to list their offering on the "Company Offerings" Page and have been rated highly by our members, achieving a non-binding ReservationsOfInvestment (TM) $ level from our investors that demonstrates that the company will achieve its funding goal, or be over-subscribed.
Under the new regulation companies can raise up to $50 million* per year from individual, “Main Street” investors. This means that start-ups and growing businesses don’t need an angel investor worth millions or billions of dollars to help take their company to the next level. Regulation A+ dramatically improves the funding prospects for excellent companies that are too small to make an IPO on the NASDAQ, for example, or which do not have access to a Private Placement or to Venture Capital. It completely changes the prospect of raising capital, giving start-up, mid-stage, and late-stage companies the opportunity to raise capital from many smaller, individual investors, who become owners of shares in the company. While of course, Angel investors and professional investors are encouraged to invest too.
*For businesses that can segment their market by geographic regions, it is possible to make multiple simultaneous offerings for one entity.
For example, let's say a company is planning to buy a series of businesses and add value to them for future sale at a profit - Private Equity is a good example. A company can establish say six regions of the US and raise capital for each region simultaneously using a dedicated Reg A+ for each region. In this example, the maximum per year would be 6x50 = $300 million per year.
For more detail about Regulation A plus, click this link to see the ebook on Reg A+ written by our Regulation A+ attorney, Mark Roderick: http://goo.gl/BWmTSR