On April 5, 2012, President Obama signed a landmark piece of bi-partisan legislation called The JOBS Act into law. The JOBS Act greatly expanded entrepreneurs’ access to capital, allowing them to go to the crowd and publicly advertise their capital raises.
Initially, private companies could only crowdfund from accredited investors, the wealthiest 2% of Americans. On June 19, 2015, three years after the JOBS Act was initially signed into law, Title IV (Regulation A+) of the JOBS Act went into effect. For the first time, Title IV allows private growth-stage companies to raise money from all Americans.
Why Reg A?
Through a Regulation A offering, growing companies can invite the first-believers to share the company’s success by owning a part of the business. Financial stake rewards early adopters for the role they played in the company’s growth.
Conducting a Regulation A+ offering allows companies to raise up to $50 Million in a 12 month time period at a fixed price offering similar to an IPO. Companies can raise capital faster and less expensively than through traditional methods. Both accredited and non-accredited investors are permitted to participate. Companies are also allowed to test the waters to determine investor appetite before moving forward. There are reduced filing and compliance requirements and the process is very efficient.
Why MD Global for a Reg A?
MD Global’s experience and relationships can help companies raise meaningful and compliant capital through a Reg A offering in an efficient manner. We have a proven track record of building long-term relationships, defining success on the number of clients we retain over the years, not on the number of new clients.