3 things to know about reg a+

Many companies who might need a capital investment might not be ready for an IPO. However, they have another option to raise the funds with the help of the reg a+. Many companies are not familiar with this regulation and that is why they opt for the private raising of capital rather than raising capital with the help of this particular regulation. We would discuss today 3 different things about the regulation a+ which you probably didn't know right now.

1. Limitation of 50 million:

While the regulation a+ could help you regulation a+ in raising 5 million but the regulation a+ can help you in raising up to 50 million. The way in which you can raise the capital is similar to an IPO. That is why regulation a+ is also known as IPO by many people. The procedure is pretty simple you have to file for the many IPO with the sec. Once you're able to get the approval, thereafter only you would be offering the shares to the normal public. However, since the raising of capital is limited, you can be sure that a number of expenses like the fees as well as consultancy charges which you would be paying would also be on the lower side. This would ensure that even if your company is small at present, you can raise the funds with the help of the regulation a+.

2. Open to the public:

If you look at the type of investors through which you can raise the funds, instead of just going to the private investors or to the high net worth investors, you would be able to directly approach to the normal public. You can even put out the advertisements in order to raise the funds. This would ensure that it becomes easier for you to raise the funds as long as you're offering the shares at a respectable valuation.

3. 2 tier system:

When you're looking at raising the funds through the regulation a+, you cannot just decide on your own which funds you have to give. It is divided into 2 tires system. If you're applying for tire 1, you would be able to raise up to $ 20 million. If you're looking for tire 2, you would be able to raise up to $ 50 million. The advantage is that in both of these systems, even the normal public investors can participate. This ensures that you are able to easily access the capital.

So, if you're looking at the reg a+ in order to raise funds for your company, these are the 3 things which you have to keep in mind and thereafter you can decide whether you would be able to raise funds or not.