Four Reasons To Do A Hybrid Reg A+ IPO
Four Reasons To Do A Hybrid Reg A+ IPO
Darren Marble, the CEO of CrowdfundX, recentley shared a guest post on PubCoCEO.com taking our readers “Behind the Scenes of a Hybrid Reg A+ IPO.”
In 2017, several of the issuers that successfully listed on senior US Exchanges with Reg A+ offerings used a hybrid approach to their Reg A+ fundraising. A “hybrid” Reg A+ refers to raising capital from both Wall Street (mostly institutional and accredited retail investors attracted through a traditional underwriter) and Main Street (non-accredited everyday people) investors.
Marble notes that a hybrid approach requires more capital, time and resources than traditional capital raising. He shares four primary issuer motivations for a hybrid Reg A+ IPO:
1. Issuers can raise more capital by targeting multiple investor segments;
2. Issuers can build incredible brand equity by marketing their Reg A+ offer online;
3. Issuers can create an army of brand ambassadors by converting customers into investors, and;
4. Retail crowd investors are the stickiest money in the deal – they hold the stock.
Click this link to learn more about Hybrid Regulation A+ IPOs.