One of the positive points of Regulation A+ is the ability of potential issuers to publicly measure investor interest before committing to a full bore funding round. This “Test the Waters” process allows a company to advertise before going through the SEC registration process – something that takes time and costs some money.
“Indications of Interest”, received by prospective investors, are not binding and in no way commit an individual to transfer funds, but they can be a solid measure of how successful a Reg A+ issue may be.
SeedInvest has just listed their first potential Reg A+ issuer that is leveraging this aspect of the exemption. WayBetter first product, DietBet, is a distributed game that incentivizes people to lose weight by competing on-line. According to the listing, “it works by providing group support, microgoals, and real rewards. And while there’s money on the line, DietBet isn’t about betting. It’s about believing in yourself, investing in your health, and sticking to your commitments.”
Since 2013, “Dietbetters” have lost over 3 million pounds. Winners have received over $12 million and today there are over 270,000 “players” in more than 100 countries. Waybetter wants to expand this competitive approach for personal goals to other categories like smoking, physical training and sleep (and perhaps more).
Founded by Jamie Rosen, a Harvard grad but HBS drop-out, he started his first internet startup, Comet Systems, as opposed to completing business school. Rosen went on to sell his patent portfolio to Yahoo. WayBetter has already done several funding rounds, including a $2.75 million Series A in 2014. In 2013, WayBetter was one of SeedInvest’s first deals raising their Seed Round.
If you are interested in more details on the company head over to SeedInvest and sign up. No need to establish “Accredited Investor” status.
Today, June 19th, at 10:29 AM ET, SeedInvest officially launched the first ever Regulation A+ deal into testing the waters, Waybetter.
[The Company] is “testing the waters” to gauge market demand from potential investors. No money or other consideration is being solicited, and if sent in response, it will not be accepted. No sales of the securities will be made or commitment to purchase accepted until qualification of the offering statement by the Securities and Exchange Commission and approval of any other required government or regulatory agency. An indication of interest made by a prospective investor is non-binding and involves no obligation or commitment of any kind.
Three minutes later, the company received the first ever (to their knowledge) indication of interest under new Regulation A+.
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