SEC changes to RegA+ and RegCF
On 04 March 2020, the US Securities Exchange Commission (SEC) has laid out the proposed changes that are going to have a major impact on the private capital markets. This is very positive for the market. These changes have been in the works for a number of years and many in the industry have advocated for these changes that are now materializing.
The Commission proposed revisions to the current offering and investment limits for certain exemptions.
Regulation Crowdfunding (RegCF):
- raise the offering limit in Regulation Crowdfunding from $1.07 million to $5 million;
This is going to benefit the 44+ online RegCF platforms such as; Republic, Wefunder, StartEngine, Flashfunders, EquityFund, NextSeed. These online platforms have paved the way and now more US-based companies will be able to capitalize on this expanded RegCF limit.
Regulation A (RegA+)
- raise the maximum offering amount under Tier 2 of Regulation A from $50 million to $75 million; and
- raise the maximum offering amount for secondary sales under Tier 2 of Regulation A from $15 million to $22.5 million.
As you saw in our recent announcement of our RegA+ all-in-one investment platform, we expect more companies to now start using RegA+ for their offerings and they need a partner that can deliver an end-to-end solution. www.koreconx.io/RegA
These two changes are momentous and will have far-reaching consequences in democratizing capital and make it very efficient for companies to raise capital. This also increases the shareholder base, which makes it even more important for companies to have a cost-effective end-to-end solution that can manage the complete lifecycle of their securities.
If you want to learn more please visit:
Here is the complete news release by the SEC
Jofre is one of the top 10 global thought leaders in Equity Crowdfunding, a Top 10 Fintech & Blockchain Influencer and a Top 50 InsureTech Influencer. Prior to co-founding KoreConX, Jofre founded SaaS-based, multilingual translation portal, BabelFish Corp. where he led a team of more than 135 individuals to provide multilingual solutions to 7,600 contractors around the world. He was awarded the Vision 2012 Businessman of the Year by the Toronto Hispanic Chamber of Commerce and is a globally sought after speaker on the topics including equity crowdfunding, blockchain, FinTech, compliance, shareholder management, alternative finance and RegTech.