{"id":418,"date":"2014-05-09T09:20:39","date_gmt":"2014-05-09T14:20:39","guid":{"rendered":"http:\/\/www.accreditedinvestorleads.com\/?p=418"},"modified":"2020-01-21T17:50:31","modified_gmt":"2020-01-21T21:50:31","slug":"benefits-using-rega-raise-money","status":"publish","type":"post","link":"https:\/\/www.accreditedinvestorleads.com\/benefits-using-rega-raise-money\/","title":{"rendered":"Benefits of Using Regulation A to Raise Money"},"content":{"rendered":"
Regulation D is the most common SEC exemption used to raise capital, however, Regulation A has distinct advantages.\u00a0 The best way to describe Reg A is as a bridge between Regulation D and a public offering.\u00a0 It gives you advantages from both.\u00a0 You are limited to raising 5 million in a twelve month period so if you need a larger amount, Reg D Rule 506 is still your best bet.\u00a0 The SEC is considering raising that amount to 50 million and once they do, Regulation A will become a more viable option for large raises as well.<\/p>\n
With Reg A you do not have to complete an official filing registration with the SEC, as you would when going public.\u00a0 Instead, you need to file a Form 1-A that includes the offering circular, disclosures, and addendums.\u00a0 The SEC has a provision in Regulation A that allows you to \u201ctest the waters\u201d to see if investors are interested in your offering before filing the paperwork.\u00a0 This is a distinct advantage for companies that are working with limited resources.\u00a0 As long as you don\u2019t accept any capital prior to filing the forms, you can promote your offering and see if investors are interested in participating.<\/p>\n
In Regulation A you are allowed to raise capital from non-accredited investors. This is a huge advantage for companies that don\u2019t have an investor network or feel their company or product would appeal to the masses, rather than a set group of investors.\u00a0 You can still accept capital from accredited investors but are no longer limited to working with them only.<\/p>\n
You are also able to advertise your offering with Regulation A.\u00a0 You can do so on the radio, print, television etc.\u00a0 The advertisements should conform with ones from a public offering.\u00a0 This is a distinct advantage over Regulation D, which only allows advertising in Rule 506 (c) and you are only allowed to advertise to accredited investors<\/a>.<\/p>\n The securities are not restricted so investors can sell them and liquidate at any time.\u00a0 This gives investors more flexibility and the option to either hold their shares long term or sell them as needed. One concern investors often have with Regulation D offerings is when and how they will be able to liquidate.\u00a0 This provision within Reg A eliminates that concern.<\/p>\n There are three formats companies can choose from when completing their offering and disclosure documents, including a question and answer format.\u00a0 This makes the process of preparing a Reg A offering fairly straightforward.\u00a0 Since you don\u2019t have to file until you know people are interested, you can save a lot of time while perfecting your offering statement.<\/p>\n If you are looking to raise capital there are multiple exemptions from registration that you should explore.\u00a0 The decision on which one to use should be based on your strategy for marketing the offering, how much you want to raise, where your investors are located, and the amount of time you have to complete paperwork.\u00a0 Understanding your goals and capabilities prior to issuing a private offering will help you to be more successful.<\/p>\n Regulation D is the most common SEC exemption used to raise capital, however, Regulation A has distinct advantages.\u00a0 The best way to describe Reg A is as a bridge between Regulation D and a public offering.\u00a0 It gives you advantages from both.\u00a0 You are limited to raising 5 million in a twelve month period so<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[63],"tags":[],"yoast_head":"\nFor more information please visit our mother site at<\/b> Salesleads.tv<\/b><\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"