Title IV Revealed (also known as "Reg A+" or "Mini-IPO")

By Crowdability, on Sunday, May 1, 2016

Title IV of The JOBS Act is also known as Regulation A+, or Reg A+ for short.

Although this part of The JOBS Act has received less publicity than Title II and Title III, it could potentially be just as big of a game-changer.

You see, Title IV modifies a securities law that’s been around for years…

It’s called Regulation A.

Reg A allows private companies to raise money from accredited and non-accredited investors.

In other words, your net worth could be $10 million or $10,000—you’d still be allowed to invest in Reg A deals.

But in order for a company to qualify for Reg A, it has to pay expensive state filing fees, it has to create audited financial statements, and it has to file numerous documents with the SEC.

All those obligations add up to a lot of expenses—in fact, the Reg A process is almost as expensive and time consuming as an IPO.

But because of Title IV of the JOBS Act, this process is becoming a whole lot easier.

Under Title IV, or Reg A+, companies only need to file statements with the SEC twice a year—and they’ll no longer have to file their documents with each state.

Although these changes will make it easier for a company to raise capital, it’s still going to be moderately costly and time consuming.

Therefore, you probably won’t see a lot of early-stage start-ups using Reg A+ to raise capital…

What you’re more likely to see is Reg A+ deals from larger, growth-stage businesses... in other words, mature businesses that already have significant traction and revenues.

For more information about Crowdability or for press inquiries, please contact us at press@crowdability.com


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Tags: Accredited investor Reg a The jobs-act Title iv

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