What is the difference between Regulation Crowdfunding (Ref CF) (TIII) and Regulation A+ (Reg A+) (TIV)?
Both Title III (Regulation Crowdfunding) and Title IV (Reg A+) help entrepreneurs crowdfund capital investments from unaccredited and accredited investors. The differences between these regulations include:
- Investor limitations
- The differing amounts of money companies are permitted to raise
- Reg CF campaigns can raise up to $5 million
- Reg A+ campaigns can raise up to $75 million
- Differing disclosure and filing requirements
- Reg A+ campaigns require more frequent and in-depth reporting compared to Reg CF campaigns
- Ability to transfer or sell shares
- Shares purchased via Reg A+ campaigns can be freely sold after the campaign closes
- Shares purchased via Reg CF campaigns must be held for 1 year before they can be sold
- Please note that there is not an established market for shares of private securities and there is no guarantee you will be able to sell the shares once the shares are able to be sold