Five Insights From The Fourth Successful Reg A+ NASDAQ IPO
In a post on Forbes.com, Rod Turner (CEO of www.ManhattanStreetCapital.com) shared a post titled “As The Fourth Regulation A+ NASDAQ IPO Begins Trading, We Explore The Arcimoto Success.”
Arcimoto (NASDAQ: FUV), is developing the Arcimoto SRK Generation 8 electric vehicle which is now available for reservation throughout the 50 United States as well as internationally.
Turner’s post shares five insights from the, Arcimoto, fourth successful Reg A+ NASDAQ IPO;
The Reg A+ Process is Faster & Easier Than Many Think
Turner says that the entire Reg A+ process takes four to six months. Arcimoto raised nearly $20 million in the four weeks after going live to investors. Mark Frohnmayer, CEO, and founder of Arcimoto says “The SEC has been fantastic to work with, highly efficient and responsive.”
A Strong Underwriter is Important
Frohnmayer says “The broker-dealer channel worked quickly and that encouraged us to compress the time schedule for the rest of our capital raising process.”
Robert Malin, Head of Capital Markets at Arcimoto underwriter WR Hambrecht, said, “Mark recently brought the Arcimoto SRK to New York City and arranged for WR Hambrecht’s broker-dealers to test drive it – there’s no substitute for personal exposure to a new drive” Malin says that the hands-on driving experience worked very well to motivate the 18 member broker-dealer syndicate that he built.
Consumer Appeal is Key
The fact that the Arcimoto EV is a consumer-appealing product is a key factor in cost-effectively reaching investors that will back up their enthusiasm with an investment. Consumer appeal is a key component of successful online investor traction, while Reg A+ is building credibility with accredited investors and institutions.
Merit Drives Success, Not Location
“Scarce Venture Capital availability in Oregon has caused entrepreneurs to go ‘The Oregon Way’ which is to find a way to make good things happen in a very cost-effective manner out of necessity,” said Frohnmayer.
This background highlights another benefit of Reg A+, which is that companies can raise capital regardless of where in the US or Canada they are located. Merit drives success, not location.
The Offering Video Plays a Highly Important Role
Another interesting twist in raising capital online is that the offering video plays a highly important role. Frohnmayer says “This is the first time I’ve raised capital without having a presentation deck – instead we really focused on the video component, As we’ve honed our product offering, we’ve also honed our in-house creative efforts in order to tell the story as concisely as we can.“
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