Reg A vs Reg D: Understanding the Differences and Benefits

When it comes to raising capital, understanding the differences between Regulation A+ (Reg A) and Regulation D (Reg D) is crucial. These SEC exemptions provide companies with different avenues to attract investors and secure funding.

Reg A allows companies to raise capital from non-accredited investors, with a maximum limit of $75 million. It consists of two tiers, allowing companies to raise up to $20 million (Tier 1) or $75 million (Tier 2) in a 12-month period. On the other hand, Reg D is primarily for companies issuing a private placement to accredited investors, with the possibility of including up to 35 non-accredited investors. Reg D includes Rule 504, Rule 506 (b), and Rule 506 (c), with Rule 506 (b) allowing issuers to offer and sell an unlimited amount of securities to accredited investors.

In this blog post, I will delve deeper into the differences and benefits of Reg A and Reg D, helping you make an informed decision on which route to take for your capital-raising needs. Let's explore the intricacies of these regulations and discover how they can work to your advantage.

Key Takeaways

• Regulation A+ allows companies to raise capital from non-accredited investors, with a maximum limit of $75 million.

• Regulation D is primarily for companies issuing a private placement to accredited investors, with the possibility of including up to 35 non-accredited investors.

• Regulation A+ and Regulation D are SEC exemptions that allow companies to raise capital using online marketing.

• Regulation A+ allows companies to raise up to $75 million per entity per year online from investors of any wealth level worldwide.

• Regulation D has no limit on how much can be raised, while Regulation A+ has a maximum of $75m/year.

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