As ageneral enthusiast of business, I can't wait to see equity crowdfunding become reality. I think it's good for business and will be good for the economy. Working with startups, small businesses and SEC reporting companies for over a decade I know the value and excitement of innovation.
During our visit to FinFair in New York City on July 29 we were able to speak with many of the early adaptors in the Reg A+ industry. The second of five topics we are covering is how Reg A+, in its most useful form, will become a marketing tool for the companies that use it.
During our visit to FinFair in New York City on July 28 and 29 we were able to speak with many of the early adopters in the Reg A+ industry. The first topic we are covering has to do with what types of business are likely to succeed in Reg A+ offering.
Anyone involved in Regulation A, and more specifically Tier II of Regulation A, known as Reg A+ has been asking questions about certain aspects of the regulation, and it’s process that weren’t clearly and explicitly outlined in the final rules. To the SEC’s credit, they have come out very quickly and started answering questions through their Compliance and Disclosure Interpretations (“C&DIs”).
On June 19, 2015, the new rules related to raising capital under Regulation A added into law. Tier II of Regulation A, which was made possible by Title IV of the JOBS Act, is better known as Reg A+ and sometimes referred to as “Equity crowdfunding” or “IPO-Lite”. Reg A+ is expected to have a significant impact on the way small and emerging businesses raise money for years to come.
One of the knocks on raising money through Reg A+ is the cost of compliance. However, the cost of Reg A+ is likely to be made out to more than it is. With Reg A + there are costs that are not required by other methods.
