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What is Testing The Waters in Regulation A+ ?

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What is Testing The Waters in Regulation A+ ?

Testing The Waters (TestingTheWaters(TM) enables companies to test market themselves to see if there is enough investor interest to make a Regulation A+ capital raise successfully.

The SEC created this program so companies can make this test before having to spend the time and money it takes to make an SEC filing and get an audit done. The SEC allows companies to market themselves in TestTheWaters(TM) with few restrictions. So companies can cost-effectively conduct a test using social media, email, online advertising and more. During this process, we provide the ability for potential investors to make non-binding reservations in a company they like. We charge $1,000 per month for it, paid in advance monthly.

We encourage companies to use our informal RegA+Audition(TM) listing service, and to engage with our members and our Mentors to get feedback on their pitch, their video, their marketing and their team; even their strategy. The more you ask questions of our community, the more help you will get. This service is for you if you want to conduct a low-cost market test of your companies’ appeal to investors before you commit to the costs of a Reg A+ offering.

When you have run a test for a couple of months, it will be clear if there is enough enthusiasm for your company to justify doing a Reg A+ offering. If you choose to move forward, you can then get an audit done, get the SEC filing underway and return to make your live investment offering when you are ready.