What Are The Average Costs of A Reg A+ Offering?
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
– Underwriter
– 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.