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

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

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

Crowdfunding doesn't actually raise you money, marketing does. Gotta market your deal. 

Every Founder is looking for the same thing a) Customers b) "the right investor". You achieve both through marketing. Because at the end of the day its up to YOU to let the world know your business exist, what your vision for it is and how they're going to benefit from supporting you as either a customer, an investor or as an #Investomer.

To be clear, #crowdfunding doesn't HELP you raise money. It ENABLES you to raise capital from all levels of investors from VCs, Institutions, Angels and Retail Investors. It is still up YOU to market your deal, regardless of which type of investor you're looking for.

Hence another reason George Pullen and I are so pumped about GoingPublic.com as it is a marketing (and Distribution) engine for startups.

So, if you want to increase your odds of success for your funding campaign (RegCF, RegA or RegD) remember to be ready to tell your story and market your ass off...more

The key to understanding, appreciating and then monetizing the art of Regulation Crowdfunding is the realization that it's more art than regulations. What that means is: 

1. There are no profitable funding portals
2. Especially if the funding portals came into existence before 2019
3. However, there is a new breed of funding portals that will be profitable by the end of 2021

The art of RegCF is that in order to reach the lofty goal of $5M there isn’t any single route. Yes, there are some guide rails but WHAT you do to raise your goal be it $5M or $50k is the fine art of strategy. HOW you execute that strategy is the dull nature of tactics. Why you care is because if you come from “traditional finance” your disadvantage is the speed at which innovation can occur, does occur and is pursued. 

Crowdfunding = Innovation

The sole reason that RegCF exists is because traditional finance and venture capital is broken. If VC funding worked so well, RegCF simply wouldn’t exist. It's not a deba...more

How to raise your first $107k in investments - The beauty of RegCF Investment Crowdfunding

The first dollar is always the hardest. Whether you’re trying to earn it, generate revenue or raise it. It all starts with Dollar One. And, knowing that you're a busy Founder, CEO or CFO so I’ll save you a long read and just let you know the following 3 facts: 

1. It costs you sweat, creativity and drive to raise your company’s first $107k using RegCF.
2. After the first $107k, it will cost you about 10% of your goal to try and raise your desired amount. Most of that goes towards marketing.
3. If you hit your $107k, you can amend your filing and continue to raise money just like these Founders did: 
   • At Ease Rentals ($303k raised from 295 investors)
   • Cornbread Hemp ($492k raised from 870 investors) 

But don’t take my word for it. Listen to this interview with Jim Higdon, Chief Communications Officer of CornBreadHemp to learn more about how Cornbread Hemp used RegCF to raise thei...more

Q: Is Crowdfunding a good fit for my business? 

A: Always. 

I often get asked, “ Is crowdfunding a good fit for my business?” The answer is 100% of the time “Absolutely”. Why is pretty simple and straightforward and we’ll outline the why investment crowdfunding is suited for your business below. 

Funding Your Business - Knowing Your Options

Bank Loans. Traditional means of funding your business include bank loans and other forms of financial instruments that your bank offers. However, for many businesses banks are not your friends. While it’s true you can get a loan or business line of credit when you’re cash flow positive and don’t need them, securing a business loan or line of credit when you need it (e.g.: pre-revenue) is nearly impossible. If you can get a bank loan then why use crowdfunding? You’re right. Good luck meeting the bank’s underwriting requirements. Eve...more