SEC Reg D vs Reg A+ (Or How to Capitalize on the New Rules for Private Company Fundraising)

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Exciting news from the SEC: the ‘IPO-Lite’ is coming!

Earlier this week, on March 25, 2015, the SEC voted unanimously (5-0) to introduce new regulations that will enable small and medium-sized private companies to raise larger amounts of money from investors before going public. These changes to the little-used SEC Regulation A will create an attractive new option for mature, private companies that want to provide liquidity for early investors and/or raise capital without going public. The new Regulation A+ rules − also referred to as the ‘IPO-Lite’ – are slated to go into effect 60 days from the date the new rules are published in the Federal Register.

SEC Reg D vs Reg A+

At Venovate, like many others, we were highly anticipating the new rules. Inspired by the SEC decision, we are expanding our partnership with the investment due-diligence and disclosure experts at CrowdCheck to assure full compliance with the new regulations, as well as support issuers to leverage the new options to raise capital.

In the table above, we have summed up the key aspects of, and differences between the new Reg A+ and Reg D, the other key change triggered by the 2012 JOBS Act.

Are you looking forward to the new Regulation A+ taking effect, either as issuer or investor? I’m curious about your take on this exciting new development.