An article we liked from Thought Leader Elliot Grossbard:
Equity Crowdfunding Explained
Starting with the basics, there are three types of crowdfunding where people invest their money into a private company in exchange for equity in the company (shares).
#1. Regulation A+ Offering
- Tier 1 Raise - You can raise up to $20 million in a 12 month period. These funds can be raised from both ordinary and accredited investors and must meet the the Blue Sky investing regulations of each state that an investor resides in.
- Tier 2 Raise - You can raise up to $75 million in a 12 month period. These funds can come from ordinary or accredited investors. Although it is not required to abide by state-by-state regulations as a Tier 1 raise, there are costly reporting requirements, including audited financials and post-offering reporting.
Each of these types of A+ offerings allow companies to undergo a “test the waters” period to gauge the...
Read the rest of this article at linkedin.com...
Thanks for this article excerpt and its graphics to Elliot Grossbard.
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