#236: Crowdfunding Experts Address New Regulation A+ Rules Live
April 7, 2015 - Read the full Forbes article and watch the interview here: http://onforb.es/1yeV52H. Subscribe to this podcast on iTunes by clicking here: http://bit.ly/ymotwitunes or on Stitcher by clicking here: http://bit.ly/ymotwstitcher. The SEC recently issued new rules for offerings under Regulations A, creating a two tier system that allows issuers to raise up to $50 million without facing all of the requirements of a public offering but potentially providing some of the benefits. To help readers understand the nuances of the new regulations, I’ve assembled three experts to explain the issues and implications of the new regulations. Sara Hanks, CEO of CrowdCheck, says, “Regulation A is going to be an effective way for early-stage companies to raise funds from a wide variety of investors.” “Reg A can’t be done without experienced lawyers, but they don’t have to be expensive,” she adds. Highlighting the complexities of the law, Hanks notes, “The issuer’s ability to ‘test the waters’ and find out whether there will be any interest in its offering before it spends money on advisors is one of the most helpful aspects of Tier 2 of Reg A. Too bad it doesn’t work for Tier 1.” “Issuers have to understand the audit requirements for Tier 2. It’s not just the need for audited financials, but they have to be in the format required by Regulation S-X. And the SEC only accepts ‘clean’ audit reports,” she concludes. Please consider whether a friend or colleague might benefit from this piece and, if so, share it.