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

300by250ad-4th-sv6

 

 

 

 

 

 

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

register-now-square-button1-1-5-1

Tags: , , , , , , , , , , , , , , ,

HEADLINE NEWS

ForbesTitle III Crowdfunding For Real, Part IIForbesTitle III of the JOBS Act went into effect last year, and many entrepreneurs and small businesses are curious about if it works and how. I had the pleasure of interviewing several companies that have gone through “equity crowdfunding [...]

Crowdfund InsiderIllinois Crowdfunding Starting Strong in 2017 - Crowdfund InsiderCrowdfund InsiderWhile it took longer than expected to get here, Crowdfunding for Illinois businesses is now officially up and running and its full steam ahead. To mark the.and more » [...]

Crain's Cleveland Business (blog)Cleveland Whiskey founder raises a glass to the crowdfunding processCrain's Cleveland Business (blog)Tom Lix, the founder and chairman of Cleveland Whiskey LLC, is part of a Forbes roundtable that looks at how the introduction of so-called [...]

EntrepreneurThis Crowdfunding Category Will Blow Up in 2017, Says the CEO of ...EntrepreneurDavid Mandelbrot believes these kinds of products will be big on the crowdfunding platform this year. He also shares his tips for successful fundraising.and more » [...]

Triple Pundit (registration) (blog)Will Equity Crowdfunding Accelerate Impact Investing in 2017?Triple Pundit (registration) (blog)This past May, a new world of possibilities opened up for social entrepreneurs around the country. The Securities & Exchange Commission (SEC) approved [...]

Science DailyCrowdfunding expands innovation financing to underserved regionsScience Daily"But crowdfunding has opened up funding to everyone else." The article was published in a recent edition of the journal Science. For the study, researchers analyzed data from 2009 to 20 [...]

Crowdfund InsiderReal Estate Crowdfunding Marketplace, Sharestates, Hits $275 Million in Loan VolumeYahoo Finance18, 2017 /PRNewswire/ -- Sharestates, a real estate investment marketplace, has originated $275 million in loans since the platform launched in 2015, making it one of the l [...]

EntrepreneurCan Equity Crowdfunding Be Fixed? - EntrepreneurEntrepreneurWith the adoption last year of the Regulation Crowdfunding (Reg CF) exemptions by the Securities and Exchange Commissionprivate companies can now raise ...and more » [...]

KFDXWhat the Tech: Downfalls of Crowdfunding WebsitesKFDXSupporters of an IndieGoGo project learned this week the company they invested in, has closed shop. Its page on IndieGoGo says it is now under review by the IndieGoGo company. Developers of "The Lily Drone" promised an [...]

The News InternationalSingaporean strangers save Pakistani boy's life via crowdfundingThe News InternationalSINGAPORE: A group of strangers pooled together the funding required for a 10-year-old Pakistani boy's treatment, who has registered a strong recovery after almost suc [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |