What kind of funding is not allowed under Reg A+?
RodBot; Click to ask me about raising capital via Reg A+, Reg D, Reg S, or going public
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+ in soecific circumstances - ask us and your securities attorney.
- Public companies. Reporting and 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.