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What companies can use Regulation A+ to raise capital?

What companies can use Regulation A+ to raise capital?

Any U.S. or Canadian company in good standing can use Regulation A+ funding to raise capital.  Reg A+ best suits successful companies that want to raise between $2million and $75million* per year.  Typically mid stage companies with a proven track record will work best.  Smaller offerings become uneconomic because of the legal and auditing fees, which we estimate will be approx $75k per company (and could be a lot more depending on which service providers you select, and the complexity of your business). Plus the cost of reporting results to the SEC twice per year (for Tier 2 offerings) and dealing with many individual shareholders.  Companies that are considering making a reverse merger (buying a public shell company) may find that Reg A+ is a far simpler and lower risk way to raise sizable amounts of growth capital through the sale of equity.

There are no reporting requirements for a Tier 1 offering, so ongoing costs are lower. See the FAQ entry on Tier 1 and Tier 2.

*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.