Another day, another successful Regulation A+ raise. With Myomo wrapping up the first successful Regulation A+ offering to list on the NYSE just a few short weeks ago, Regulation A+ is becoming more and more of a viable option when it comes to raising money to go public.

“I would love to raise capital for my company through a Reg. A+, but where do I start?” 

I’m glad you asked. Here is a convenient checklist that should help you get your Regulation A+ started, running, and through the finish line.


☑ Lawyer:

This may seem obvious, but you’re going to need to hire a lawyer. Not just any lawyer though, you will need an experienced securities lawyer. One of the most important things this lawyer is going to need to do is file your Form 1-A with the SEC. Form 1-A is basically a document that includes any and all information that a potential investor might want to know. This document is a lot of work, so you want to make sure the lawyer you hire has experience in this area.


☑ Audit firm:

Now, a completed audit is only required with a Tier 2 Reg A+ offering, but since almost all deals are Tier 2 (and doing a Tier 2 is what we would recommend) you are going to need an audit firm to complete one for you. Much like with the lawyer though, you are going to want an audit firm with experience in this area.


☑ Transfer agent:

There is a new regulation that requires companies using web-based crowdfunding portals to maintain accurate records of securities transactions, and having a transfer agent is the easiest way to make sure those records are perfect. A transfer agent is not only going to help you keep compliant with all regulations, but they are also the ones who will manage your shareholder database.


☑ Broker Dealer:

Now, having a broker dealer is not a requirement when putting together a Regulation A+ campaign, but it is better to be safe than sorry. Because it is required for the broker dealer to file with FINRA and be included in the company’s SEC filings, it isn’t practical to go back and try to include a broker dealer after the offering has started. Elio Motors is a great example of why this is important. They were attempting to raise $25 million but maxed out their available consumer investor pool and only wound up raising $17 million. They had broker dealers wanting to get in on the raise, and would have easily hit their $25 million dollar goal had they had one.


☑ Platform:

There are specific platforms/portals depending on which type of raise you are attempting. There are platforms specifically for real estate, platforms only for accredited investors (which would be used for a 506c) and platforms for all equity crowdfunding which would be the type you would want to use for a Tier 2 Regulation A+ raise. StartEngine (which is the platform Elio Motors used) and SeedInvest are two of the most popular platforms for Regulation A+ raises to this point.


☑ Marketing:

Now that you have all of that in place, it’s time for the most important aspect of a successful Regulation A+ campaign. The marketing! Much like anything else, you can’t just set it up and expect people to find it and want to invest their money. You need a marketing campaign in place to draw attention to, and ultimately get investors to invest in your company. One of the biggest mistakes being made by companies right now is a DIY approach to the marketing aspect of a Regulation A+ raise. You wouldn’t try to put together Form 1-A on your own, would you? No, you would hire an experienced lawyer like we discussed earlier. Same goes for marketing, You want to hire an investor relations marketing firm who knows investors. You want to hire a firm with a process in place to not only get those investors but also turn those investors into stakeholders or evangelists who will tell others about your offering.


Let’s keep the conversation going. Go to my Linkedin and let me know what you think.