The Securities Exchange Commission reports that in the first year of operation of a provision known as “Reg A+” of the JOBS Act, a total of 94 companies filed to raise a total of $1.7 billion in equity financing as reported by Wall Street Journal. Of those, only about half of the offerings have qualified to raise funds, and just a few have actually completed their stock offerings.
This confirms the basic underlying point that I frequently talk about that better preparation is the key to successful crowdfunding. Simply put, most companies – in all sectors and size categories – are just not there yet. I urge potential issuers to follow a strategic process outlined in this recent blog post that is likely to maximize the chance of crowdfunding equity success.