During the seven day period, the Regulation D market contracted at a slightly faster pace both in terms of funds raised by issuers and number of transactions. The amount of money raised was propped by a small number of companies that raised unusually big financing rounds. Additionally, the activity of the VC & SMB market contracted with a fundraising and activity growth rates that underperformed the overall Regulation D market.
VC and operating companies captured 3.2% of the overall pool of money raised via Regulation D, however they accounted for 35% of Form D filers during the past seven days. Issuers collected 68 cents for each dollar offered, representing a decline of 14% for the period. Following a more stable trend, compliance scores on average reached 94.
45 issuers, or 31%, checked ” Other “ as industry when filing with the SEC. XDATA through its curating process narrowed it down to 26 or 6.9%.
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|XDATA – June 24th 2016|
|After twenty financial backers subscribed to 88% of its equity financing round, AYR disclosed initiating a first close after raising $5.5 million. The subscription to the $6.23 million non-brokered private placement started a week ago according to information filed with the SEC. Based on the offering’s structure, the company has until June 2017 to raise an extra $735,000. The company doesn’t appear to have previously sold securities under a registration exemption with the SEC.|
|The company is an on-demand women’s apparel brand that makes high-quality pieces designed for everyday life. The company spun-out of Bonobos. Investors include Leandra Medine, Scott Morrison, Hayley Barna (First Round Capital), and Andy Dunn (Bonobos).|
|AYR, registered in 2016, is headquartered in New York NY. It is led by Margaret Winter (CEO). Revenues were not disclosed.
The executive team includes Alexander Reich, Jacqueline Cameron and Max Bonbrest.
The board of directors includes Andrew Dunn, Jack Schwefel and Sanderson Cass.
Status: First close
Amount offered: $6.23 million
Amount placed: $5.5 million
SEC filing: Source
First sale: 06-17-2016
Data as of: 06-24-2016
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“The activity of the VC & SMB market expanded, both fundraising and the activity grew at a faster pace than the overall Reg D market.
VC and operating companies captured 19% of the overall pool of money raised via Regulation D, yet they represented 46% of Form D filers during the seven days ending on May 27. Issuers fetched 97 cents for each dollar offered, representing an improvement of 52% for the period. Following a more stable trend, compliance scores on average reached 94.
During the week, the number of fundraising transactions increased by 8.7% to 225. Companies were much more bullish than before and offered the market $2.73 billion worth of securities, an improvement of 77%. Mirroring a similar path, investors acquired much more, subscriptions grew 282% to $2.64 billion.”
|Change: offered +178% / raised +236% / placed 100%|
|XDATA – May 25th 2016|
|Snapchat closed its unregistered equity offering after increasing the placement’s size by 178% to $1.81 billion. The offer closed after the company raised $1.27 billion from one hundred and twenty-two additional investors within a year. At closing, a total of one hundred and fifty-seven investors had subscribed to Snapchat‘s offering. The company closed four unregistered private placements which raised an estimated $615.21 million.|
|Snapchat markets and develops a photo messaging application that allows users to communicate by taking photos or recording videos, add text and drawings, and send them. Investors include Lightspeed Venture Partners, Benchmark Capital, Coatue Management, Institutional Venture Partners and General Catalyst Partners.|
|The company is headquartered in Venice CA. Snapchat elected to keep its revenues undisclosed.
The executive team includes Andrew Vollero, Chris Handman, Evan Spiegel, Imran Khan and Robert Murphy.
The board of directors includes Joanna Coles, Michael Lynton, Mitch Lasky and Stanley Meresman.
The company has raised an estimated total of $2.42 billion via private unregistered security offerings.
Industry: Other Technology
Amount offered: $1.81 billion
Amount placed: $1.81 billion
SEC filing: Source
First sale: 02-17-2015
Data as of: 05-25-2016
During the seven day period, the Regulation D market contracted at a slightly faster pace in terms of transactions while the pool of money raised shrank at an a milder clip. The activity of the VC & SMB market contracted in line with the overall Regulation D market trend though fundraising growth outpaced the overall Regulation D market.
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I am delighted to announce the release of a series of activity reports focusing on the VC & SMB financing market as well as 24h turnaround consulting service for clients who need custom activity reports based on issuers’ location, industry, custom time-frame and any other combination of attributes.
The reports showcase XDATA’s normalized and curated content set based on Regulation D. They also leverage Yseop‘s natural language generation technology that enables us to provide unmatched market analytics while allowing us to continue to focus on what we do best: collect, normalize, curate, contextualize and provide a second life to a source of information that has been abused by data miners and that has been traditionally poorly leveraged by data providers.
While our Q1 2016 investment amount is right on the money with the NVCA’s MoneyTree Report ($11.94Bln vs. $12.1Bln), the most important is that our number of transactions is not (2.2K vs 1K) because our research process actually offers a more complete and unbiased view of the private SMB market than venture capital data sets that are based on unregulated information such as press release and therefore, fraught with inaccuracies. At the very least (and most importantly), we provide an alternative and a novel and fresh perspective to investment professionals and market participants.