What You Need to Know About Reg A+

KoreConX
Posted at 12/16/2022

 

If you are an entrepreneur looking to raise funds, you may have heard of Regulation A+, often referred to simply as Reg A+. This alternative to traditional venture capital, private equity, or other funding sources allows companies to sell securities to the public without going through the lengthy and costly process of registering with the SEC. Since it was expanded in 2012 with the JOBS Act, Reg A+ continues to evolve, facilitating increased capital formation for companies within the private capital market.

What is Reg A+?

The goal of Reg A+ is to make it easier and less expensive for small businesses to access capital while still providing investors with the protection of an SEC-qualified offering. The offering is exempt from complete SEC registration, allowing companies to raise up to $75 million in capital, with certain restrictions and requirements. To qualify for this exemption, a company must file an offering statement (Form 1-A) with the SEC that includes all pertinent in...more

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Part 3 (of 3): SmallChange Regulation Crowdfunding (Reg CF) Educational Materials

Small Change
Posted at 12/15/2022

Risks of investing

Many of the Securities listed on our Platform are speculative and involve significant risk, including the risk that you could lose some or all of your money. We’ve described some of the factors that make these investments risky in four ways:

  • First, because many of the opportunities on our Platform will be in the real estate sector, we’ll describe risks common to that industry.
  • Second, because many of the opportunities on our Platform will be in startup or early-stage companies, we’ll describe risks common to those companies.
  • Third, we’ll describe risks common to many of the companies on the Platform, not covered in the real estate or startup categories.
  • Fourth, we’ll describe risks associated with particular kinds of securities (e.g., debt securities or equity securities).
  • Fifth, when you review a particular investment opportunity, the Issuer will also provide a list of risks specific to that opportunity.
    The order in which these factors are discussed, either here on
...more

Categories: Funding Portals  |  Investor Education  |  Reg CF
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Has RegA+ Killed the IPO?

KoreConX
Posted at 12/15/2022

Has RegA+ Killed the IPO?

Regulation A+ gives issuers the ability to raise $75 million in crowdfunding while remaining private. With RegA+ benefiting both companies and investors, does this mean the death of IPOs?

RegA+, part of the JOBS Act, allows companies to raise funds through the general public, not just accredited investors. With more and more IPOs delayed, unprecedented access to private capital is available to all organizations. With RegA+, anyone can invest in private companies, making it increasingly popular with companies seeking capital, primarily since they can raise a significant amount of funding.

The regulatory and monetary hurdles that come with entering an IPO in addition to RegA+ have led to delays in initial public offerings. Since the JOBS Act was passed in 2012, funding opportunities for private companies have improved, especially with the allowance of not-accredited investors opening up a previously untapped pool of prospective investors. Additionally, the secon...more

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Online Capital Formation beyond Crowdfunding

KoreConX
Posted at 12/15/2022

The JOBS Act reached its tenth anniversary in 2022. We celebrated the date with the launch of our Podcast, KoreTalkX, recently mentioned by Spotify as in the top 10% of the most shared shows globally. But the regulations that brought a lot of novelties to the capital raising process still face some misconceptions, especially regarding Crowdfunding. We are introducing Online Capital Formation and why you have to understand it.

We do write a lot about the democratization of capital because we believe that everyone should be able to participate and share in the benefits, whether as entrepreneurs, brand advocates, innovators, or investors (both accredited and non-accredited). What we may be missing here is that Regulation CF (RegCF) has matured over the past decade, and it is time to look at it in a more complex way.

For many individuals, the word “crowdfunding” still evokes Kickstarter as a Top of Mind idea. Entrepreneurs that need money to launch a product pitch their ideas online and pe...more

Categories: Reg CF  |  Regulations & Compliance
Sponsored by: Dealmaker
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What You Need to Know About Reg CF

KoreConX
Posted at 12/15/2022

Raising capital is always a challenge, especially in the startup sector, which means that it’s vital to understand all the options available and how they can help you attain your goals. We will discuss Regulation Crowdfunding (Reg CF), which has proved to be an increasingly popular method among early-stage companies looking for funds due to its exemption from SEC registration and access to a vast pool of potential investors, in addition to being cost-effective. This blog post will outline some essential things you need to know before taking advantage of Reg CF as a form of raising capital. Understanding what challenges you may face along the way and what resources are at your disposal will hopefully give you greater insight into whether this capital option is right for your business.

What is Reg CF?

Reg CF refers to equity-based crowdfunding.
This type of financing method raises money through small individual investments from many people.
Startups and early-stage businesses can use Reg C...more

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Sponsored by: Dealmaker
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Online Capital Formation And Why You Have To Understand It

KoreConX
Posted at 12/14/2022

The JOBS Act reached its tenth anniversary in 2022. We celebrated the date with the launch of our Podcast, KoreTalkX, recently mentioned by Spotify as in the top 10% of the most shared shows globally. But the regulations that brought a lot of novelties to the capital raising process still face some misconceptions, especially regarding Crowdfunding. We are introducing Online Capital Formation and why you have to understand it.

We do write a lot about the democratization of capital because we believe that everyone should be able to participate and share in the benefits, whether as entrepreneurs, brand advocates, innovators, or investors (both accredited and non-accredited). What we may be missing here is that Regulation CF (RegCF) has matured over the past decade, and it is time to look at it in a more complex way.

For many individuals, the word  “crowdfunding” still evokes KickStarter as a Top of Mind idea. Entrepreneurs that need money to launch a product pitch their ideas online ...more

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Sponsored by: Dealmaker
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Introducing the CfPA Ecosystem's ChatGPT BOT -- Power to the People?

Brian Christie Brian Christie
Posted at 12/13/2022

In the past week, the public release of OpenAI’s ChatGPT, an artificial intelligent "bot" has garnered a lot of press and attention. As with many leaps forward in technology, people are struggling to understand the impact it will have on society and in some cases, on their very own lives or livelihoods. 

If you ask ChatGPT whether or not AI could have an impact on the field of investment crowdfunding, it will tell you:  

"Yes, it is possible that AI could have an impact on the field of investment crowdfunding. AI can be used to process large amounts of data quickly and accurately, which could be useful for analyzing potential investment opportunities and making predictions about their success. Additionally, AI could be used to automate many of the tasks involved in managing a crowdfunding campaign, such as identifying potential investors and tracking progress toward fundraising goals. However, it is also important to consider the potential drawbacks of using AI in this contex...more

Categories: Featured  |  Investor Education  |  Issuer Education  |  Regulations & Compliance
Sponsored by: Dealmaker
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We Can't Rely on Venture Capital Funding to Build a Just and Thriving Entrepreneurial Economy

Jenny Kassan Jenny Kassan
Posted at 12/3/2022

If we hope to build a thriving economy that supports a diversity of business models and entrepreneurs, we should work to expand inclusive non-VC business funding models .... cont'd 

https://www.entrepreneur.com/leadership/venture-capital-funding-no-longer-provides-a-just-and/438356 

...more

Categories: Impact Investing
Sponsored by: Dealmaker
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