Elio Motors, one of the very first companies to take advantage of the new Regulation A+ rules, part of the JOBS Act, allowing possible issuers the option to “test the waters” prior to an offer, has captured almost $17 million in expressed investor interest in just 19 days on StartEngine. Reg A+ allows not only accredited investors to participate but non-accredited investors to participate as well. Companies using Reg A+ may raise up to $50 million in new capital.
According to info from the equity crowdfunding platform, almost 5000 potential investors indicated a willingness to commit the solid sum to back the autocycle company. Elio initiated its test on June 19th the very day the new Reg A+ rules became actionable. There were joined by several other potential issuers but it appears that Elio may have generated the most solid results as of yet. Indications of interest are non-binding commitments from interested parties but should give Elio some guidance on moving forward with an equity crowdfunding offer.
Elio Motors is a “greentech automotive startup” raising funds for its predicted 2016 launch of its three-wheel, two-seat enclosed vehicle. The energy efficient transportation is expected to sell for $6,800 and get up to 84 MPG.
LA based StartEngine is managed by CEO Ron Miller, a staunch advocate of access to capital and the democratization of investment opportunity. StartEngine has always viewed Title III of the JOBS Act as a unique opportunity but with final rules still in limbo the crowdfunding platform has launched with several companies looking to use Reg A+.
It will be interesting to see when, and how much, Elio Motors will raise once the details of the offer become public. The current funding goal is stated at $25 million.
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