Regulation A+ Disrupts Traditional Investing and Fundraising
Noted investment advisors Paul Getty and Dinesh Gupta reveal how entrepreneurs and investors can benefit
SAN JOSE, Calif., April 12, 2016 /PRNewswire/ -- The Securities & Exchange Commission's recent approval of Regulation A+ is transforming the way in which entrepreneurs and investors can join forces to create new investment opportunities. Since its approval in June 2015, over 150 new fundraising initiatives have either been submitted or been approved by the SEC representing over $1.2 billion in new investments. The most prominent of the recent firms taking advantage of Reg A+ is the new automotive company Elio Motors which raised $17 million by turning customers into investors and whose stock more than doubled in value shortly after being listed on OTC Markets.
The timely release of a new book, Regulation A+: How the JOBS Act Creates Opportunities for Entrepreneurs and Investors, co-written by Paul Getty, Dinesh Gupta, and Robert Kaplan, Jr. provides a guide to both entrepreneurs and investors on how to take best advantage of the new SEC rules.
"Reg A+ is crowdfunding on steroids," said Paul Getty, Reg A+ author and co-founder of the new information portal www.RegAExchange.com . "Entrepreneurs are able to publicly advertise offerings and accept funds from both accredited and non-accredited investors," he added.
Prior to the new Reg A+, entrepreneurs seeking investment funds were largely limited to high net worth investors and/or institutions under Regulation D which, until recently, also prohibited public advertising. The passage of the JOBS Act in 2012 accelerated the growth of so-called crowdfunding activities, but unlike Reg A+, such investments are generally limited to no more than $1M per project thereby limiting the use of crowdfunding for larger opportunities.
"Reg A+ dramatically expands access by regular investors to investment opportunities that have been closed to only wealthy individuals and Wall Street," stated Dinesh Gupta, co-author of Reg A+ and co-founder of www.RegAExchange.com.
"Entrepreneurs can raise up to $50M per year and are able to offer investments to 20 times as many investors as before which is resulting in an upsurge of job creation and wealth formation," added Gupta.
New Book Offers How-to Guide for Entrepreneurs and Investors
Regulation A+: How the JOBS Act Creates Opportunities for Entrepreneurs and Investors is the authoritative guide to Reg A+ for executives of emerging growth companies, entrepreneurs, financial advisers, venture capitalists, investment bankers, securities lawyers, finance and MBA students, as well as others who want to learn how to raise up to $50 million a year without doing a traditional IPO. Instead, Reg A+ offers a new type of IPO, unencumbered by the heavy regulation and costs of traditional IPOs. Regulation A+ can be used across a very broad range of investment opportunities including technology firms, real estate, operating companies, motion pictures, among many other areas.
The book guides readers in very practical terms on how to take advantage of key provisions of Reg A+ that:
- Permit companies to raise up to $50 million, a 10-fold increase over the old Reg A limit of $5 million, and 50 times the current crowdfunding limit.
- Allow companies to market IPOs to a wider audience, rather than just accredited investors.
- Leverage public advertising to greatly increase exposure of offerings.
- Exempt companies under certain conditions from onerous and costly reporting and compliance requirements, such as Sarbanes-Oxley.
Background
The bipartisan Jumpstart our Business Startups (JOBS) Act of 2012 required the SEC to update its old Regulation A to become what many are calling Reg A+. In 2015, the SEC announced the rules for Reg A+, which increased the amount a private company could raise through a public securities offering from $5 million a year, to $50 million a year, and allowed non-accredited investors buy in.
Many American companies are filing their first Reg A+ offerings now.
About RegAExchange
RegAExchange was founded in 2012 with a mission to provide curated content related to Reg A+ for both for both entrepreneurs and investors and to also to provide a "one stop shop" for firms seeking investment capital. See www.RegAExchange.com for more information or call Paul Getty, 408 392-8859 or Email.
Book Purchase Information
"Regulation A+ How the JOBS Act Creates Opportunities for Entrepreneurs and Investors" may be purchased online through the publisher's website, http://www.apress.com/9781430257318?gtmf=s; the distributor's website, http://www.springer.com/us/book/9781430257318; and through http://www.amazon.com/Regulation-Creates-Opportunities-Entrepreneurs-Investors/dp/1430257318/ref=sr_1_1?ie=UTF8&qid=1454957091&sr=8-1&keywords=regulation+A%2B.
SOURCE www.RegAExchange.com
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