Regulation A+ (Tier 1 and Tier 2)
Regulation A+ is often referred to as a “mini-IPO.” It allows issuers to raise funds from both retail investors (ordinary people) and accredited investors while providing greater access to capital. However, it involves more regulatory work compared to Regulation D or Regulation S.
Who Can Invest?
Both retail and accredited investors can participate.
How Much Money Can Be Raised?
Tier 1: Up to $20 million in a 12-month period.
Tier 2: Up to $75 million in a 12-month period.
Are There Any Restrictions?
For Tier 2, you need to provide audited financial statements and submit periodic reports to the SEC (e.g., annual and semiannual filings).
For Tier 1, you may need to register with state securities regulators (this is called “blue sky laws”).
What Compliance Steps Are Needed?
Both tiers require SEC qualification before you can offer tokens to investors.
You must prepare an offering circular, a detailed document explaining the tokenized asset, the risks, and the terms of the offering.
Why Choose Regulation A+?
Regulation A+ is perfect for issuers who want to raise large amounts of capital while including both ordinary and high-net-worth investors. It is particularly useful for projects seeking widespread public participation, but it requires more compliance work and time.
Last updated
Was this helpful?