Webinar Recording – Reg A+ Forecast Hosted by Issuance & CfPA

Online capital raising has flourished in 2020. With companies successfully raising $10 to $25 million through their own websites in a matter of months, Regulation A+ has come roaring back with a vengeance.

With this in mind, join Issuance and the CfPA on our November 18th webinar as we look forward to 2021 and explore the future of the Regulation A+ securities exemption and the financing opportunities it provides companies.

The 2021 Reg A+ Forecast industry expert panel will discuss the following topics:

1) Why was 2020 a breakout year for Reg A+?
2) How are issuers successfully raising $25 million online, and what are the risks?
3) What were the challenges with past Reg A+ IPOs, and how do we fix them?
4) What innovations are needed to give investors a better chance to earn an ROI?
5) What will the “Going Public” series offer to issuers and investors?

More info on the panel:The Crowdfunding Professional Association (CfPA) is a 501 (c)(6) nonprofit trade group that was established shortly after the signing of the JOBS Act on April 5, 2012.

Darren Marble is co-founder and CEO of Issuance, which is a leading provider of SaaS solutions for Regulation A+ issuers. He is also the co-founder and co-CEO of Crush Capital, creator and owner of the “Going Public” series.

Sara Hanks is the co-founder and CEO of CrowdCheck, and is an attorney with over 30 years of experience in the corporate and securities field.

David Feldman is an attorney and advisor who actually coined the term Regulation A+ at an SEC conference and literally wrote the book on Regulation A+.

Aaron Gurewitz is a Managing Director and Head of ROTH Capital Partners Equity Capital Markets Department.

SEC Announces Amendments to Crowdfunding Regulations

New York, NY, November 16, 2020 – The Crowdfunding Professional Association (CfPA) announced today that the U.S. Securities and Exchange Commission (SEC) has amended rules governing crowdfunding under both Regulation A and Regulation Crowdfunding. The CfPA has provided guidance to the SEC regarding these changes since before the bipartisan passage of the governing JOBS Act in 2012.

The changes are intended to make investment crowdfunding rules more effective and accessible for both entrepreneurial issuers and investors. By raising the limits on investments, more people will be allowed to invest more money in these startups. In parallel, the higher limits on fundraising will increase small businesses’ ability to raise capital under these rules.

Some of the most important rule amendments are summarized below:

Regulation Crowdfunding:

  • raise the offering limit under Regulation Crowdfunding from $1.07 million to $5 million;
  • amend the investment limits for investors in Regulation Crowdfunding offerings by:
    • removing investment limits for accredited investors; and
    • using the greater of their annual income or net worth when calculating the investment limits for non-accredited investors; 
  • extend for 18 months the existing temporary relief providing an exemption from certain Regulation Crowdfunding financial statement review requirements for issuers raising $250,000 or less; 
  • permit Regulation Crowdfunding issuers to “test-the-waters” prior to filing an offering document with the Commission in a manner similar to current Regulation A.

Regulation A:

  • raise the maximum offering amount under Tier 2 of Regulation A from $50 million to $75 million;
  • raise the maximum offering amount for secondary sales under Tier 2 of Regulation A from $15 million to $22.5 million;
  • simplify certain requirements for Regulation A offerings and establish greater consistency between Regulation A and registered offerings.

Rule 504 of Regulation D has also been amended to increase the cap on offerings from $5 to $10 million. 

Furthermore, the final rule will exempt certain “demo day” communications from being deemed a general solicitation or general advertising.

The final rules are effective 60 days after publication to the federal register. The SEC’s final rule can be found here.

The CfPA is committed to continuing efforts to advocate for amendments that improve access to capital, to democratize investment opportunities traditionally exclusive to wealthy investors and to protect investors.

About CfPA:

The Crowdfunding Professional Association (CfPA) is a 501(c)(6) nonprofit trade group established shortly after the signing of the Jumpstart Our Business Startup Act (“JOBS Act”) on April 5, 2012. The CfPA is dedicated to equitably representing the Crowdfunding industry and supporting the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) by providing entrepreneurs, investors and industry professionals with education, networking and tools all necessary to cultivate a balanced and healthy ecosystem able to help accelerate capital formation and ensure investor protection.

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Contact:

Crowdfunding Professional Association
Brian Belley, Secretary
305-780-5313
secretary@CfPA.org 

CfPA & OTC Markets Group host Fireside Chat

This discussion covers many subjects relevant to those interested in Crowdfunding, AltFin and FinTech, including updates on regulatory movements at the SEC and on The Hill.

CfPA president keynotes 7th annual Crowd Funding Institute of Australia summit

A warm reception and vibrant discussion at CfPA’s sister association down under. The event was a high-energy, content-rich and agenda-packed day tailored to professional of people movers across all forms of digital fundraising.

CfPA FREE Forum Nov 16 on W. 62nd

Full details here

CfPA FREE Forum Nov 16 on W. 62nd

CfPA FREE Forum Nov 16 on W. 62nd

CfPA partners with Fordham University and Computershare for FREE forum: “The State of Crowdfinance” Nov. 16th 5;30pm. Full details here

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More on CfPA ECO here

ECOCfPA Launches Knowledge-Sharing Platform with Brainsy.com to make Crowdfunding expertise accessible to entrepreneurs, investors and general public. More on CfPA ECO here.

CfPA BOD Keynote at World’s Largest CrowdFunding Summit

chinaCfPA Board of Directors members Alon Hillel-Tuch, Jordan Fishfeld, and Scott McIntyre hosted at the world’s largest CrowdFunding summit. The October 2015 event in Guiyang, China expected 8000 attendees but received over 13,000. For more information, visit www.GlobalCFC.cn.