PODCAST: How to do Crowdfunding From Regulation A to an OTC Listing
Even though you can raise up to $75 million dollars with a Regulation A (Reg.A) offering, many issuers do not understand the flexibility of the program. For many, the goal is to raise a set amount of money, but going public and getting listed on the capital markets may make a whole lot of sense as well. In this podcast, Mike Brette from Small Cap Equity Advisors goes over all the dos and donts on how to make the whole process work for you and your company.
Crowdfunding sounds easy, but it isn’t the wild west and there are significant rules and regulations you must follow if you want to do Regulation A correctly, eventually leading to a listing on a capital market such as the OTC. As Mr. Brette mentions on the podcast, you don’t want the SEC knocking at your door.
However, the flexibility associated with Reg.A makes it very attractive to use as a vehicle to go public. But how? What are the nuances here? What kind of advertising can you do? What are the only tw...more
What You Need to Know About Reg A+
KoreConX
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?
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 Flexibility of Regulation A Crowdfunding
Many seeking to raise capital for their business usually use the tried-and-true Regulation D exemption from the IRS. But did you know that going the Regulation A (Reg.A) route may provide you with more flexibility, both in the short and long term? In this podcast, Mike Brette from Small Cap Equity Advisors discusses some of the options, nuances, and advantages that Reg.A provides compared to a private placement under 506(c) Reg D. But you have to do it all correctly. And one thing’s for certain: you don’t want to raise any red flags with the SEC!
Many think raising money under Reg.D is cheaper, better, and faster than doing a Reg.A. Are they right? Despite being around for a while now, not many business owners, CEOs, and issuers truly understand crowdfunding, especially Reg.A crowdfunding. When you listen to this podcast, you’ll get a better understanding of why Mr. Brette is so bullish on the topic. From its liquidity options on secondary markets, costs invo...more
Why Reg.A is the Superior Crowdfunding Choice over Reg.D or Reg.CF
Despite being around for years now, there’s still major confusion from issuers regarding the benefits and drawbacks of Regulation A (Reg.A), Regulation CF (Reg.CF), and Regulation D (Reg.D) crowdfunding offerings. What option is right for you? In this podcast, Mike Brette, the CEO and Founder of Small Cap Equity Advisors goes over why he believes Reg.A is the superior choice in most instances, plus provides advice as to what issuers should be doing (and what they shouldn’t be doing as well) in order to achieve a successful capital raise.
Reg.A, Reg.D, Reg.CF… What’s best for you and/or your company? And how much will it all cost you? Based on the reasons Mr. Brette provides in this podcast – both pro and con, he makes a strong case that regardless of the size of your raise, you should strongly consider the Reg.A option right from the start.
Restricted stock, “dead money”, valuation determination, accreditation of investors, liquidity issues, possible advertis...more
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