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...
Only a handful of start-ups have successfully raised funds in US capital markets using the Reg A+ regulations. The SEC has been working on rules for bitcoin since 2013, and last year it issued guidance to financial institutions that said they should not be required to register with FinCEN as money services businesses. Challenges faced by companies include the amount of marketing needed to attract investors, as well as difficulties with meeting minimum goals for offerings.