Why Conduct a Regulation A+ Kick-starter Campaign?

Why should companies conduct a kick-starter campaign under Regulation A+? … Simply to raise more capital through equity crowdfunding. Title IV of the JOBS Act (Regulation A+) allows entrepreneurs to market their offerings to any investor in an equity crowdfunding campaign, despite their income or accreditation status. What does this mean for companies raising capital? Only that the pool of investors is staggering and the potential to gain significant capital is highly likely. In 2013, when Title II of the JOBS Act was introduced, an estimated $250 million in capital funding was raised online in the first year alone. This type of investing has grown to more than $16 billion worldwide in the past few years. And, because the recent legislation in Regulation A+ doesn’t discriminate against any type of investor, it is likely that these numbers will increase significantly this year. An article in Forbes predicts that the crowdfunding industry will double to $34 billion in 2015, spread across several types of funding models like rewards, donation, equity and debt/lending. And with the new crowdfunding laws opening doors to more capital, even the venture capitalist industry could see a decline this year. So why should companies conduct a kick-starter campaign? The question should be, “Why are companies NOT conducting kick-starter campaigns?” To learn more about Regulation A+, read our latest blog posts at www.edgaragents.com. To learn more about Edgar Agents and our services, do not hesitate to call us at 732-780-5036 or visit our site.