What Are The Average Costs of A Reg A+ Offering?
At the recent Reg A+ Conference, Jillian Sidoti of Crowdfunding Lawyers delivered a presentation discussing what companies are paying to do Regulation A+ offerings.
According to Sidoti, all Reg A companies must report certain costs in their filings including;
– Legal fees
– Audit fees
– Sales commissions
– Promoter fees
So, What Are The Average Costs of A Reg A+ Offering? According to Sidoti, the average spent by issuers doing Reg A+ offerings are as follows;
Legal Fees: $82,924 average ($650k high and $50k median)
Audit Fees: $29,506 average ($250k high and $14,500 median)
Underwriter: $406,236 average ($4.5M high)
Sales Commissions: most Reg A+ issuers do not use broker dealers and thus the average spend in near $0.
Promoter Fees: $14,120 average ($3M high)
Total average Reg A+ cost: $1,447,392
Sidoti notes that “new issuers” can spend much less than the above averages because they have simpler audits and grassroots marketing.
Click this link to watch the entire video of Jillian Sidoti’s presentation from The Reg A+ Conference.