Reg A+ IPO: How Much Does It Cost and How Much Can You Raise?

The Form 1-A Registration process with the SEC to gain Qualification for a Reg A+ is far simpler than for an S-1 Filing, and the average time to get Qualified is 70 days, cost for legal service providers to conduct the Form 1-A filing range from $50k to $150k.

Marketing costs will range from 2 to 6% of the capital raised from consumer investors on the funding platform in most cases. By establishing a low minimum, companies can conduct an early first closing in their Reg A+ offering and from that point onwards, fund the ongoing marketing costs from investment proceeds. Two year audited financials are required prior to starting the SEC filing. Audit costs will depend on the auditing firm (PCAOB required) and the complexity of the company.

Most Reg A+ IPOs will need to involve Broker Dealer Syndicates to add to the consumer investor demand that the marketing agency campaign will drive to the Reg A+ Offering on Manhattan Street Capital. A reasonable estimate for all-in costs is in the 10% range, including Broker Syndicate fees, Transfer agent and escrow fees where applicable and listing fees

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