The process for raising capital effectively under Regulation D certainly became easier with the advent of 506(c) and the ability to engage in general advertising and solicitation of the offering. However, 506(c) offerings are limited to accredited investors only – thus 95%+ of the investing public is not available for investment into that type of offering.
While many people will assume that non-accredited investors would only invest small amounts – the reality is many non-accredited investors can easily invest $25,000+ in a single subscription. Consider a married couple making $280,000 combined income and have a $750,000 net worth – technically they are non-accredited by SEC Regulation D Rule 501 standards.
Enter Regulation A+. Interested in retaining the capability to engage in public advertising and solicitation of your offering – but don’t want to be limited to only accredited investors? Regulation A+ provides the perfect solution for executing a straightforward and cost effective offering that allows for both public solicitation of the offering and the ability to accommodate all investors – accredited and non-accredited.
While a Regulation A+ offering is nominally more expensive to prepare (due to the submittal and SEC qualification process) and requires about 2-3 months longer than preparation of a Regulation D based offering – the Regulation A+ program definitely provides the issuer with a more effective and sophisticated offering that maximizes the potential for success.
Why ignore 95%+ of the investing public for your capital raise? Executing a Regulation A+ offering provides you a true “mini IPO” in terms of promotional capabilities and access to investors. The program is open to companies operating in a plethora of industries including real estate, technology, energy, manufacturing, and more.
Interested in reaching the next level for your capital raise? Want a more sophisticated and effective offering than a Regulation D based offering? Call us today to find out more about the Regulation A+ program and how it can benefit you in aggregating investor capital for your business or project – (303) 984-4883.
Monday June 01, 2020
Category: Capital Formation and Regulation D
Interested in learning more about our services?
Continue reading or call us at 303-984-4883