Reg A Offering : When is it the right offering type?

This post was originally written by our KorePartners at Capital Raise Agency. View the original post here.

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;

  1. The amount you are wanting to raise
  2. How you want to raise it (broker dealer channel, RIAs, high net-worth individuals, etc)
  3. 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.