All About Regulation A Crowdfunding

At CrowdEngine we pride ourselves on understanding our clients’ needs, the regulations, and helping our clients succeed in the crowdfunding and Fintech industry. If you’re not familiar with the new crowdfunding rules and you want to get involved, it’s important to learn all you can about the rules.

Whether you’re a venture capital firm, angel group, startup, or real estate professional, you’ll always need a lawyer who can sign-off on everything, but as a smart entrepreneur you should also be informed about all your choices, and what the rules really say.

On March 25, 2015, the Securities and Exchange Commission (the “Commission”) adopted final rules to implement Section 401 of the Jumpstart Our Business Startups (JOBS) Act by expanding Regulation A into two tiers: Tier 1, for securities offerings of up to $20 million in a 12-month period; and Tier 2, for securities offerings of up to $50 million in a 12-month period. This amendment to Reg A, now commonly referred to as “Reg A+” helped to create additional flexibility in the offering process for issuers, so we thought we would share a great resource on the final Regulation A Rules (ecfr.gov).

Regulation A

§230.251   Scope of exemption

§230.252   Offering statement

§230.253   Offering circular

§230.254   Preliminary offering circular

§230.255   Solicitations of interest and other communications

§230.256   Definition of “qualified purchaser”

§230.257   Periodic and current reporting; exit report

§230.258   Suspension of the exemption

§230.259   Withdrawal or abandonment of offering statements

§230.260   Insignificant deviations from a term, condition or requirement of Regulation A

§230.261   Definitions

§230.262   Disqualification provisions

§230.263   Consent to service of process

§§230.300-230.346   [Reserved]

If you want more information on all the available regulations you can view them here.

Lots of reading here. Enjoy!

Disclaimer: This information is provided to our clients and other friends for educational purposes only. CrowdEngine is not guaranteeing any information as reliable or accurate, and that it’s subject to change at any time. It should not be construed or relied upon as legal advice. Please contact your lawyer with respect to any of the matters discussed here.

This post was written by Lanli Pham on February 11, 2019