Reg A+ From Zero To One To $50MM – The Roadmap To Get It Done

By Philip Chen, CrowdfundBeat  Sr. Editor,

Reg A+ is the latest rule to be enacted as part of the Jumpstart Our Business Startups (JOBS) Act and is otherwise known as Title IV of the Act. The predecessor Titles were passed in 2012 and 2013 and the main one, Reg CF (aka Title III- Crowdfunding) is expected anytime now.

Reg A+ is the first federal legislation that combines the benefits of general solicitation with providing non-accredited and accredited investors an opportunity to participate. Given it’s complexity and expected cost, it’s meant for late state growth companies to raise up $50MM by performing a “mini-IPO”. Moreover, the securities issued are transferrable which can generate additional liquidity for companies that utilize this option to raise funds.

The process starts with the review of investor communications before openly “testing the waters” to collect indications of interest from the public. There are quite a few other steps in the middle such as a financial audit, due diligence checks and the creation of an offering memorandum. After these preliminary steps, regulatory filings are due with the SEC, which can take up to a year or more to approve. After regulatory approval, the issuer can raise capital from any investor, on and offline.

Most recently, Start Engine, FundPaaS and Seed Invest have started to provide options for industry participants to “Test The Waters” online. Start Engine and Seed Invest do this from their own site by tapping into their own network of investors, while FundPaaS provides a “portal as a service” for broker dealers, investment portals and do-it-yourself issuers to embed their web plug-ins.  The most notable campaign to date has been Elio Motors’s $25MM in indications of interest earlier this summer which was hosted through Start Engine with Next Gen Crowdfunding as the official media platform.

CrowdFundBeat Media International welcomes you back to the premier conference on Crowdfunding and Alternative Finance

Mark your calendars for the 4th Annual Silicon Valley Crowdfunding Conference on 3-4 March 2016, to be held at the Computer History Museum in Mountain View

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Here’s what some through leaders had to say about Reg A+ and the upcoming event:

“Regulation A+ is an important change in the securities laws that is having a profound impact on capital raising, especially for small businesses.  It presents a new way to access retail investors without full SEC registration and without issuing restricted securities in connection with a private placement.  The SEC has also simplified the state-by-state clearance process which previously bogged down Reg A offerings and moved everything to the federal government.”

Limited Promo Code  20 % Off       group discount available 1- 888 – 580- 6610 FREE

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