What are the differences between Regulation CF and Regulation A+?

Both Title III and Title IV help entrepreneurs crowdfund capital investments from unaccredited and accredited investors. The differences between these regulations are related to the investor limitations, the differing amounts of money the companies are attempting to raise, and the different disclosure and filing requirements. 

Regulation Crowdfunding

Regulation Crowdfunding, also known as Title III of the JOBS act, was adopted in May of 2016 as a way to reduce regulatory restrictions thus making it possible for companies to raise capital from both accredited and non-accredited investors. This means that companies who are looking to raise up to $5 million are now able to do so through crowdfunding portals like StartEngine.

Is my company a good fit for Reg CF?

It is impossible to know for certain if a campaign will be successful, but below are some of the criteria for companies that would be a good fit for Title III:

    • Must be incorporated in the US

    • Primary place of business must be in the United States or Canada

    • Seeking to raise $5 million or less for the first round

To see all Regulation Crowdfunding offerings currently on StartEngine, go to the StartEngine Discover page.

Regulation A+ 

Regulation A+ (also known as Title IV of The JOBS Act or Reg A+) allows companies to raise up to $75 million from both accredited investors and the general public. This regulation is similar to a traditional initial public offering (IPO). However, in a Reg A+ offering a company soliciting investments from the general public will remain private. Additionally, Reg A+ offerings allow companies to raise capital faster and less expensively than in an IPO.

Is my company a good fit for Reg A+?

We don't know which campaigns will be huge successes, but we do have some basic criteria for companies that are a good fit for our platform.

  • Must be incorporated in US or Canada
  • Primary place of business must be in the US or Canada
  • Seeking to raise a minimum of roughly $2,000,000
  • Understands that the Regulation A+ requires significantly more accounting and legal cost, qualification with the SEC, as well as increased ongoing disclosure requirements 

To see all current Regulation A+ offerings currently on StartEngine, go to the StartEngine Discover page.

 

 

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