Fundraising · Regulation

Regulation A+ (JOBS ACT) -- what does it mean for us?

Steven Schkolne Computer Scientist on a Mission

March 26th, 2015

I noticed some news this week about Regulation A+.entrepreneur.com/article/244278 >> "SEC: Startups Can Now Raise $50M in Mini IPO"

I'm not sure entirely what this means, on a practical level, for early-stage startups. I know there are some people on this list who are pretty smart about stuff like this. What opportunities does this new regulation open up?
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John Seiffer Business Advisor to growing companies

March 27th, 2015

I'm not a lawyer, but one I know says this is not for start-ups but for "Companies established enough for audited financials,ongoing reporting & requirements for small public offering" This from @CherinLaw.

Bonnie Burgett

March 26th, 2015

Regulation A+ basically gives you the opportunity to do a miniature IPO of up to $50MM. It reforms a previously unused securities law from the 1930's because it pre-empts registration on a state by state basis. Its one route to "crowdfunding" should you want to advertise your offering and are able to afford/go through the process with the SEC. I wrote a 200 page thesis on this topic at MIT 2 years ago and am happy to tell you more or answer any questions. ----- Bonnie Burgett c: 214.794.0306

John Arroyo Delivering ecommerce and cloud applications, CEO of Arroyo Labs

March 26th, 2015

There are some new entrepreneur platforms like GrowthFountain and multiple others that will be offering angel like investment opportunities to unaccredited investors.  From what I understand, the existing platforms only allow accredited investors to fund start ups for equity.

Expect to see sites like kickstarter, indiegogo, angel list, and a bunch of others allow equity based funding from average joes.  If you start a kickstarter campaign right now you can't offer equity, that could change.

Thats my take on it at least

Robb Miller founder at gnito

March 26th, 2015

Hi Steven: it is extremely good news for startups generally, but note that thought the new rules are published in the register, thy will not become law for at least 60 days, during which time there will be comments, and potentially changes (large and small) for example I notice that the $50M may have already been changed to $20M