Take Away from FinFair – Regulation A Intended Users

During our visit to FinFair in New York City we were able to speak with many of the early adopters in the Reg A+ industry.  The fifth and final topic we are covering is about Regulation A intended users and who the SEC thinks will be raising money versus what the marketplace is saying.If you read the final Regulation A rules it is clear that the SEC wrote the rules with the intention that seasoned companies would be using Reg A+ to raise money; companies with customers, previous rounds of financing, years of operating history, etc.However, if you speak with people in the Reg A+ community, you know that many of the Company’s looking at Reg A+ has limited operating histories and sometimes, no revenue.  This is a drastic different difference in view but ultimately, the market for Reg A+ offerings will be dictated by the companies that utilize it.There is no right or wrong time to start a Reg A+ offering, but use professionals that know the rules and regulations as interpretations or guidance from the SEC may be necessary.