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What companies can use Regulation A+ to raise capital?

What companies can use Regulation A+ to raise capital?

Any U.S. or Canadian company in good standing can use Regulation A+ funding to raise capital.  Reg A+ best suits successful companies that want to raise between $2million and $50million* per year.  Typically mid stage companies with a proven track record will work best.  Smaller offerings become uneconomic because of the legal and auditing fees, which we estimate will be approx $75k per company (and could be a lot more depending on which service providers you select, and the complexity of your business). Plus the cost of reporting results to the SEC twice per year (for Tier 2 offerings) and dealing with many individual shareholders.  Companies that are considering making a reverse merger (buying a public shell company) may find that Reg A+ is a far simpler and lower risk way to raise sizable amounts of growth capital through the sale of equity.

There are no reporting requirements for a Tier 1 offering, so ongoing costs are lower. See the FAQ entry on Tier 1 and Tier 2.


*For businesses that can segment their market by geographic regions, it is possible to make multiple simultaneous offerings for one entity.

For example, let's say a company is planning to buy a series of businesses and add value to them for future sale at a profit - Private Equity is a good example. A company can establish say six regions of the US and raise capital for each region simultaneously using a dedicated Reg A+ for each region. In this example, the maximum per year would be 6x50 = $300 million per year.