Reg A+ offers a range of distinct advantages that make it one of the most practical and cost-effective ways for a company to raise capital while retaining control. It has become an increasingly popular path for companies that want the benefits of a public offering without the costs, delays, and constraints of a traditional IPO.
With Reg A+, a company can raise up to seventy-five million dollars in any twelve-month period, which gives management real flexibility to fund major expansion, complete acquisitions, or finance several years of operations without returning to market. For many companies, that ceiling is more than enough to reach the next major milestone or even profitability.
Another standout feature of Reg A+ is that it opens the door to investors who are usually excluded from private placements. Both accredited and non-accredited investors can participate, and they can do so from anywhere in the world. That global accessibility means the audience is no longer a handful of institutions—it’s potentially thousands of individual investors, customers, and supporters who care about the company’s mission. When your customers and fans become shareholders, they have a personal reason to promote your brand and help it grow.
The cost and speed of a Reg A+ offering compare very favorably to a conventional S-1 IPO. The process is simpler, the legal and audit costs are far lower, and the SEC’s review period is usually around sixty days, with some offerings qualified in as little as two weeks. Instead of spending hundreds of thousands of dollars on legal and accounting fees upfront, companies can allocate more of their resources to growth, marketing, and operations.
Once the offering is qualified, management gains unusual flexibility. You can adjust the valuation during the live raise to reflect investor demand—rewarding early subscribers with a lower price and ensuring that later investors pay an amount that better reflects market interest. This feature helps limit dilution and keeps control in the hands of those who built the company.
Reg A+ also provides excellent liquidity options for past and current investors and founders. The SEC allows liquidity for all shareholders in a company that has a Qualified Reg A+, as long as they have passed their Rule 144 holding period (usually 6 months). Insiders and owners of more than 10% of a company's stock have restrictions on their ability to trade as they are “insiders”.
Companies that use Reg A+ are not required to list on any exchange, but they are able to use Reg A+ to list on the NASDAQ or the NYSE, via a Reg A+ IPO (NewsMax did this in March 2025) or by a Direct Listing. Other ways to provide convenient secondary market share sales include the OTCQB, OTCQX, and the new breed of exchanges called Alternative Trading Systems (ATS). A big advantage of ATS exchanges is that they do not allow shorting of stock.
Control remains where it belongs. Reg A+ offerings generally involve common shares without special voting rights or protective covenants, so management keeps setting the direction. You don’t end up with a new board seat or restrictive terms that can slow down decision-making. The company’s timeline for product development, hiring, or future financing stays an internal decision.
For companies that already have a strong customer base or active community, Reg A+ can also turn marketing into capital formation. The same digital tools that drive product sales—email campaigns, social media, checkout pages—can be used to attract investors. A customer who invests is often your most loyal advocate. Each new shareholder becomes part of the company’s growth engine, spreading awareness and driving engagement at a marginal cost that’s often lower than acquiring a repeat customer.
Even though Reg A+ is a public offering from the day the Form 1-A is qualified, there’s no requirement to list on Nasdaq, the NYSE, or any national exchange. Companies can take their time, strengthen their balance sheets, and only choose to list when the market conditions and metrics support it. This flexibility allows management to grow into the public markets on its own terms, not an underwriter’s schedule.
To get started or learn more about how we can assist you with your capital-raising needs, please email [email protected].
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Rod Turner
Rod Turner is the founder and CEO of Manhattan Street Capital, the #1 Growth Capital service for mature startups and mid-sized companies to raise capital using Regulation A+. Turner has played a key role in building successful companies including Symantec/Norton (SYMC), Ashton Tate, MicroPort, Knowledge Adventure, and more. He is an experienced investor who has built a Venture Capital business (Irvine Ventures) and has made angel and mezzanine investments in companies such as Bloom, Amyris (AMRS), Ask Jeeves, and eASIC.
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