Navigating the fundraising process and understanding how much to budget from a financial standpoint is one of the most frequent questions we receive. In the process of conducting a RegA+ offering ourselves, KoreConX has researched the estimated budget for a RegA+ offering.
While the budget varies based on several factors, you need to keep in mind the size of your raise and sector. As a general rule of thumb, it is a good idea to be ready to spend at least $250,000 on a successful RegA+ offering, $50,000 of which should be dedicated to getting your investor acquisition started. Most of your budget will be spent on Investor Acquisition. Now, this will not apply to every company but should serve as a general guide as to what you should expect a RegA+ offering to cost depending on the amount raised.
Estimated Costs for USA-Based Companies:
| What | Why/ Work to be done | When | How much |
| USA Lawyer | To file your SEC Form 1A and state filings | First step in moving forward | $35-$75k |
| Auditors | Are required to be filed with your Form 1A | First step requirement | $3,500 + |
| SEC/State Filings | Required regulatory Filings | $5k | |
| FINRA Broker-Dealer | 8 States require you to have a Broker-Dealer to sell securities to investors | Begin engagement when you start with lawyer | 1-3% fees |
Investor Acquisition
|
These firms prefer to be engaged right after you file, as the clock begins and gives them only 45-60 days when you go live. Depending on size of offering you will spend up to $200k-$400k. | Before you file your Form 1A | $25-50k at the beginning to start |
| Investor Relations Director | Hire an internal resource to manage incoming inquiries from potential investors. Handle outbound calls from investor leads. | $4,500/month | |
| KoreConX All-In-One platform | End-to-end solution | $4,500/month | |
| Investment Platform | Requires 45-60 days to set up | After you retain your lawyer | Included with your KoreConX All-in-one platform |
| Live Offering | During the live offering you will have to pay for ID, AML fees required | Ranges from $0.58/person, these fees are provided at cost | |
| Live Offering | During the live offering you will have to pay for your Payment processors ( Credit Card, ACH, EFT, Crypto, WireTransfer, IRA) | These fees are provided at cost | |
| SEC-Transfer Agent | Required as part of your Form 1A filings | After you sign up with lawyer | Included with your KoreConX All-in-one platform |
| Secondary Market | Ability for Shareholders to trade private company shares. | Included with your KoreConX All-in-one platform | |
| TradeCheck Report | Ability to trade in all 50 states, include Blue Sky registration, and listing National Securities Manual | Included with your KoreConX All-in-one platform |
Estimated Costs for Canada-Based Companies:
| What | Why/ Work to be done | When | How much |
| USA Lawyer | To file your SEC Form 1A and state filings | First step in moving forward | $35-$75k |
| Canada Lawyer | $5k-$10k | ||
| Auditors | Are required to be filed with your Form 1A | First step requirement | $3,500 + |
| SEC/State Filings | Required regulatory Filings | $5k | |
| FINRA Broker-Dealer | 8 States require you to have a Broker-Dealer to sell securities to investors | Begin engagement when you start with lawyer | 1-3% fees |
| Investor Acquisition | These firms prefer to be engaged right after you file, as the clock begins and gives them only 45-60 days when you go live. Depending on size of offering you will spend up to $200k-$400k | Before you file your Form 1A | $25-50k at the beginning to start |
| Investor Relations Director | Hire an internal resource to manage incoming inquiries from potential investors. Handle outbound calls from investor leads. | $4,500/month | |
| KoreConX All-in-one platform | $4,500/month | ||
| Investment Platform | Requires 45-60 days to set up | After you retain your lawyer | Included with your KoreConX All-in-one platform |
| Live Offering | During the live offering you will have to pay for ID, AML fees required | Ranges from $0.58/person these fees are provided at cost | |
| Live Offering | During the live offering you will have to pay for your Payment processors ( Credit Card, ACH, EFT, Crypto, WireTransfer, IRA) | These fees are provided at cost | |
| Transfer Agent | Required as part of your Form 1A filings | After you sign up with lawyer | Included with your KoreConX All-in-one platform |
| Secondary Market | Included with your KoreConX All-in-one platform | ||
| KoreTrade Report | Ability to trade in all 50 states, published in the Securities Manual | Included with your KoreConX All-in-one platform |