Reg A+ offerings in the context of crowdfunding and real estate investment platforms are usually of two types:
- Later-stage growth companies raising money for their own expansion, who want to raise money from the general public (including non-accredited investors), but are not yet ready for a true IPO and listing on a stock market. (Some even refer to Title IV offerings as “mini-IPOs”.)
- New types of investments, like the “eReit” from Fundrise and the MogulREIT from RealtyMogul, which use Regulation A+ to solicit larger amounts from the general public than are available under Reg CF (with corresponding higher disclosure and regulatory burdens).
While it’s been around longer than Reg CF funding, the ramp up has been slower for Reg A+, in part because of the deal sizes (up to $50M), but Reg A+ funding may eventually overtake every other form of fundraising for later-stage and growth companies.
Crowdfunded investing with Reg A+ investments offers everyone the same kind of influence once reserved for the wealthy, helping pick which companies get funding to launch new products or grow their business. If you’re looking for somewhere to start, check out 5 of the Best Equity Crowdfunding Sites for Beginning Investors from our blog.
There is no limit to how much anyone can invest in a Tier 1 Reg A+ offering, but for Tier 2 offerings, non-accredited investors are capped at 10% of their income or net worth (whichever is greater).
More on Reg A+
You can find more information on the various types of offerings over at our blog, or search our database of more than 80 online crowdfunding, real estate, and alternative investment platforms. Want to know more but aren’t sure where to start? Ask other investors on our investor forums, or check out the links below.