Reg A+ Q3 update

by Brandon Raatikka

A growing number of broker dealer and investment advisor clients requesting due diligence on Regulation A offerings from us demonstrates the inroads these deals continue to make in the financial services industry. And the pipeline of offerings continues to increase. In the third quarter of 2017, the SEC qualified 22 Tier 2 offerings, representing the highest quarterly total since the new Regulation A rules went into effect in 2015. Of the Tier 2 117 offerings qualified since then (and not subsequently withdrawn), 55% of them have come to market in the first three quarters of 2017.

One blueprint for a successful raise may be emerging—issuers leveraging both traditional broker dealer syndicates and direct-to-crowd sales. In any event, for several reasons, issuers that have relied on broker and advisor selling groups have generally outraised issuers going only directly to investors.

In addition, we’re starting to see that an increasing proportion of new offerings qualified by the SEC are of direct participation programs, which may explain the growing interest in the Reg A+ space from yield-oriented advisors and their clients.

Below is an interactive summary of FactRight’s Tier 2 Regulation A database, updated for offerings qualified through the end of the third quarter. The charts below are dynamic; if you click on a single data point in any chart, it will filter the data displayed on the sidebar at left and in the remaining charts. Hover your cursor over a chart for additional information.


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Filed Under: Regulation A+