The number of U.S. public companies peaked around 1996 at more than 8,000 and has since fallen to 4,000 today. That 50 percent decline is attributed to several interconnected factors, including increased regulatory costs, the rise of private capital, merger and acquisition activity, and the high overall expense of initial public offerings, among other reasons.
Enter Reg A+, one of several forms of private capital companies can use to raise substantial sums of capital from shareholders, while remaining private and in control of their operations.
One such company that took advantage of Reg A+ to good effect is Pacaso, an enterprise focused on democratizing access to second-home ownership. It used Reg A+ to raise nearly $75 million.
Austin Allison, a former executive at Zillow and now co-founder and CEO of Pacaso, explains how Reg A+ works and why it is a compelling fundraising mechanism for some companies.
Why are Reg A+ offerings being described as
