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. Since the rules were introduced in Roughly a year, a total of 94 companies have filed to raise $1.7bn with just 45 qualifying and only a few completing an initial public offering. Challenges faced by companies include the amount of marketing needed to attract investors, as well as difficulties with meeting minimum goals for offerings.