Reg A Offering – When is it the right offering type?
There are a lot of questions we get from potential clients or people that hire us for consulting on their fund around Reg A offerings but one of the main ones is what type of fund should I use to raise capital for my offering?
It really depends on a couple of things;
- The amount you are wanting to raise
- How you want to raise it (broker dealer channel, RIAs, high net-worth individuals, etc)
- Do you want to do general solicitation? (advertise to non-accredited investors)
The answers to these questions really will help determine if you should do a 506c offering, Reg CF, or Reg A (or Reg A+).
If you want to raise less than $5,000,000 a Reg CF is probably the best option for you – however, if you want to raise more than $50mm a Reg A or Reg A+ is going to be the best fit.
Our personal favorite for the larger raise is the Reg A or Reg A+ because it allows you to market to non-accredited investors, and run ads, and do creative marketing campaigns that is often not allowed through your normal Reg D or Private Placement offering.
If you have already started the process of building out your Reg A or Reg A+ offering you can contact us for a quick brand audit, where we just check and see how everything is looking and give honest feedback on what you need to adjust or update going forward.
Reg A offerings allow people to go out and raise capital that use to only be seen by the big players.
If you have a dream and an idea that requires capital; a Reg A offering is a great place to start.