Is Reg A A Success?

Neal Newman assesses the success of Regulation A in a paper titled, "Regulation A+: New and Improved after the JOBS Act or a Failed Revival?" The author reviews the 267 Regulation A filings made between August 13, 2012 and May 24, 2016 and samples a subset of 48 filings from this period. Of the sample, 19 were Tier 1 filings (39.6 percent) and 29 were Tier 2 filings (60.4 percent). For the Tier 1 filings in the sample set, the average minimum offering amount was $829,861 and the average maximum amount was $17,677,397. Average total assets over the sample were $6,215,061. Based on the Tier 1 offerings in the sample, the author concludes that very few of the filers sought to raise the maximum $20 million permitted under Tier 1 and few of the Tier 1 issuers were of a size to need $20 million in capital. It took, on average, 375 days to get qualified. By contrast, for the Tier 2 offerings in the sample set, the average maximum was just over $23 million. On average, these