Our analysis of private placement data from 2009 to May 2013 shows that more companies are turning to private placements to raise money, and the total number of offerings is growing.
From the chart above, one can see that the number of companies offering private placements increased 35% from 2009 to 2012, and the total number of offerings similarly increased 34%. Both of these trends look set to continue in 2013. During this time, the average amount sold per offering ranged between $7.52 million and $9.84 million.
How to make sense of these trends? The reason could be simple: private placements have a less complex registration process and a relatively low registration cost. Stay tuned for further analysis as we continue to gather data.