Regulation A+: How the JOBS Act Creates Opportunities for Entrepreneurs and Investors

"This book is a must-read for all entrepreneurs who need to raise capital to grow their businesses."

—from the Foreword by Bill Hambrecht, Founder and Chairman, WR Hambrecht + Co

"We congratulate the authors for bringing together many of the elements needed to help corporations and their investors take advantage of Reg A+ in a simple and easy-to-understand guide."

—from the Afterword by David Weild IV, Founder and CEO, Weild & Co.; Former Vice Chairman of NASDAQ; "Father" of the JOBS Act

Discover how to raise money under the SEC’s long-awaited Regulation A+ implementing Title IV of the JOBS Act.

This ground-breaking book is the authoritative guide to Reg A+ for executives of emerging growth companies, entrepreneurs, financial advisers, venture capitalists, investment bankers, securities lawyers, and finance and MBA students on how to raise up to $50 million a year through what is in effect a new type of IPO unencumbered by the heavy regulation and cost of a traditional IPO. Reg A+ lifts many of the constraints on soliciting funds, raising growth capital through public offerings, and trading new stock issues that till now inhibited the growth of small companies.

The SEC rules implementing Title III of the JOBS Act by expanding equity crowdfunding to non-accredited investors and allowing small businesses to raise up to $1 million per year have been greeted with speculative excitement in the startup space. But investment banking and stock market heavy hitters such as Bill Hambrecht and David Weild believe that Reg A+ will have a much greater economic impact than the crowdfunding rules and will launch a revolutionary period of growth, innovation, investment returns, and job creation.

Paul Getty, Dinesh Gupta, and Robert Kaplan pool their experience as serial entrepreneurs, investors, and lawyers to show readers in very practical terms how to take maximum advantage of the powerful provisions of the Reg A+ that

• permit companies to raise up to $50 million—a tenfold increase over the old Reg A limit of $5 million and fifty times the crowdfunding limit
• allow companies to market IPOs to more people than just accredited investors
• make it easier to get the word out on offerings
• exempt companies under certain conditions from onerous and costly reporting and compliance requirements, such as Sarbanes-Oxley

What you’ll learn

• How Title IV of the JOBS Act amends Regulation A, making it easier for you to raise up to $50 million in expansion capital while avoiding burdensome regulations.
• How raising funds through Regulation A might now be a better and less costly choice for raising capital than current options (like loans or venture capital).
• How to use Regulation A to gain liquidity for your business, your employees, and your investors—while maintaining control.
• How to abide by Regulation A rules before, during, and after an IPO.
• What kinds of businesses can take part in Regulation A offerings.
• How and where to trade shares after the IPO.

Who this book is for

Executives of emerging growth companies, entrepreneurs, financial advisers, venture capitalists, investment bankers, securities lawyers, finance and MBA students, and others.

Table of Contents

Chapter 2 Overcoming Challenges to Going Public

Chapter 3 Benefits of Regulation A+

Chapter 4 Limitations and Business Line Considerations

Chapter 5 The Key Elements of a Reg A+ Offering

Chapter 6 Raising the Capital through an Underwriter

Chapter 7 Post-IPO Activities

Chapter 8 Secondary Markets and Regulation A+ Securities

Chapter 9 Final Thoughts

Appendix A Current Legal Authority

Appendix B Current Guidance from SEC

Appendix C Public Statements of Commissioners at Open Meeting to Adopt Regulation A+

Appendix D OTC QX/OTC QB Listing Requirements and On-Ramp Guides

Appendix E Offering Statement Exemplars Appendix F: Blue Sky

Glossary