What is Regulation A-Plus? Watch the video below to find out.
Regulation A+ differs in two major ways.
First, it allows private companies to openly solicit investors, on the Web and elsewhere.
Secondly, it paves the way for unaccredited investors (basically, people who aren’t professional investors, don’t have more than $1 million in assets, and don’t make more than $200,000 a year), to take part in these private placements.
Before Reg A+, small companies could only raise capital from accredited investors and smaller investors would be left out completely.
If you’re a ‘NON-ACCREDITED INVESTOR‘, then you are limited to 10% of your annual income or net worth or revenue/net assets for a business, unless you’re an ‘ACCREDITED INVESTOR‘, in which case there is no legally mandated investment limit.
Imagine how it would feel if you watched someone you knew who qualified as an “accredited investor”, invest in an early stage company like Uber and you couldn’t because you didn’t meet the qualifications required for that type of investment. Fast forward a few years and you see their investment return 5,000% and change their life forever while you sit there and think about what could have been.
Well, Regulation A+ changes all of that and those types of investments are now available for everyone regardless if you’re a school teacher, gardener, hair stylist or any type of profession.
Yes. In an open meeting on March 25, 2015, the SEC elected to approve and release the long-awaited final rules for Title IV of the JOBS Act (commonly referred to as Regulation A+).
Per the final rules, under Regulation A+ companies will be permitted to offer and sell up to $50 million of securities to the general public subject to certain eligibility, disclosure and reporting requirements. The final Regulation A+ rules were published in the Federal Register on April 20, 2015 and became effective on June 19, 2015.
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