Ever since Regulation A+ became the law in June, I have been inundated with calls from companies excited about the prospect of raising up to $50 million in new capital online through a Mini IPO (initial public offering).
Potential clients I speak to understand that Regulation A+ offerings need approval from the U.S. Securities and Exchange Commission (SEC) and require an investment of legal, compliance and accounting fees. But when I explain to them that committing to a full-blown marketing plan is likely required to raising significant capital, I usually get blank stares. Once the silence subsides, I generally hear something like this:
