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I Want To Use Tier 1. How Can I make It Work Well?

What are the best ways to make a Tier 1 work for your offering?

Not needing an audit is appealing and not having to file results each six months and an annual audit every year suits my company well.

Factors that suit using Tier 1:

  • All your investors are local and in one State, and the State is easy to get your Blue Sky filing approved.  Check out the states that matter to you here: See the detailed list of States and how they work for Blue Sky Filings.
  • Your company is a bank that is exempt from State Blue Sky filing requirements.
  • All your investors will be from OUTSIDE the USA. Then you have no need to file for Blue Sky exemption with any US States.  This is close to ideal.
  • You are doing a Reg A+ ICO, and you intend to raise all the money from non-US investors. The ICO marketing costs are significantly lower, and the whole process is much faster because you don't need to bother with an audit or Blue Sky laws. 
  • A maximum raise of $20 mill is sufficient. (Tier 2 starts at zero and goes up to $50 mill*).
  • You do not want to list your company on an OTCMarket like OTCQB or OTCQX or the NASDAQ.

*For businesses that lend themselves to segmenting their market, it may be possible to make multiple offerings by following a similar model to the one that Fundrise has used. Each Reg A+ entity is a standalone business and shares one management service provider. In this way, Fundrise has conducted multiple Reg A+ offerings simultaneously since 2016. So far this model has only been Qualified by the SEC in Real Estate situations, but the SEC may allow the same approach in other business areas. We don't know yet.