Regulation A+ IPO or the MINI IPO- A recent article in the Wall Street Journal by Ruth Simon revealed that, “Roughly a year after the passage of new rules making it easier for fledgling businesses to tap U.S. capital markets, just a handful of them have succeeded in doing so. A Phoenix-based startup that makes three-wheeled vehicles raised roughly $17 million through one such mini-IPO, in which small companies can raise as much as $50 million by issuing securities. Two other companies together have raised nearly $70 million for real estate investments, while a community bank with operations in three Southern states has issued stock for a merger deal.”
It seems that even though smaller companies have been afforded a tremendous financing opportunity by the passage of Regulation A+ few have taken full advantage of the “mini-IPO.” According to MS. Simon, small companies still face several obstacles when raising investor capital; a weak market for initial public offerings, insufficient...
