Emerging Markets Law

Trends in Private Offerings

The Crowdnetic February 2014 report on private offerings contains a wealth of information on trends in private offerings.  The Crowdnetic report is intended to cover "private issuers publicly raising" (PIPR) funds under Regulation D.  The report is compiled from data collected from Form Ds filed with the SEC under Rule 506.

As of the end of February, 2014:

  • There were 2,594 active PIPRs with capital commitments of approximately $116.6 million;
  • Of these, 37% were for Service companies and 25% were for Technology companies;
  • Of the cash raised in February, the greatest amount was for real estate development (comprising $17 million of the $36 million raised in the month);
  • Geographically, the western U.S. accounted for the greatest number of PIPRs and the greatest amount of cash raised.  (The South came in second); and
  • Although the highest number of offerings are equity offerings, convertible debt offerings raise more cash.

Crowdnetic's approach of compiling and publicly-releasing this data is a smart one.  As the number and size of PIPR offerings increase the opportunities for data-mining, and the value relating to those efforts, will also increase.

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