What kind of funding is not allowed under Reg A+?
RegA+ does not allow funding for the following:
- Companies with headquarters outside the U.S. or Canada. It is fine to move or set up the legal headquarters in the US or Canada for international businesses.
- Investment companies as defined by the Investment Company Act of 1940. Pure venture capital firms cannot use Reg A+. VC firms that are Debt based (minimum of 60% debt holdings) are allowed to use Reg A+.
- Public companies. Non-reporting public companies are allowed to use Regulation A+
- Development stage companies with no business plan or purpose
- Companies issuing fractional, undivided interests in oil, gas, or mineral rights
- Companies disqualified under the “bad actor” rules
That’s it. If your company doesn’t fall into one of those exclusions, you’re eligible.