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

by | Monday January 24, 2022
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.

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Free forever, KoreConX makes it easy for participants in private capital markets to manage their investment portfolios, raise capital, and meet global compliance standards along every step of the way.

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Join the All-In-One Platform empowering private capital markets.

Free forever, KoreConX makes it easy for participants in private capital markets to manage their investment portfolios, raise capital, and meet global compliance standards along every step of the way.