The Difference Between Regulation A+ and CF Crowdfunding.

[dbelov275 11]

There are three different types of equity crowdfunding offered under the JOBS Act:

Accredited Crowdfunding - Regulation D (made possible by Title II)

Crowdfunding Plus, Title IV/Regulation A+ (“Reg. A+”)

Retail Crowdfunding, Title III/Regulation Crowdfunding (“Reg. CF”)

These are the types of equity crowdfunding but we will be discussing the major difference between Crowdfunding plus, Title IV/Regulation A+ and Retail Crowdfunding, Title III/Regulation Crowdfunding.

Actually, these two are pretty much similar to each other because for the most part they do the exact same thing. The regulation A+ allows entrepreneurs raise up to 50million dollars a year from non-accredit and accredit investors alike, but it does require the prior authorization of the SAC before a company can begin selling shares and collecting cash. While the Retail Crowdfunding, Title III/Regulation Crowdfunding is only allowed to raise up to a million dollars a year and does not require the prior authorization of the SAC before a company can begin selling shares and collecting cash.

This is the major different between the two. hope this helps someone

[vladtitov151 10]

Howbeit the difference between these two, I don't think Title IV (Regulation A+) and Title III (Regulation CF) of the JOBS Act should be competing to determine which is better. Both are designed to serve two different audiences and as such will be best suited for different companies at different stages.

[dbelov275 11]

Yes you are right. In that regards, here are some few common advantages of both of them

Founders set terms

Founders set value of company

Founders set number and price of shares

Founders set minimum investment

[JoelDarr 10]

Yes you are right. In that regards, here are some few common advantages of both of them

Founders set terms

Founders set value of company

Founders set number and price of shares

Founders set minimum investment

 

I wonder what are their disadvantages then? For example, I've heard there are certain problems concerning lack of liquidity, and some consider restrictions are too tight. Could you delve deeper into the topic? I know it's probably some basic information, but I thought I'd ask you since you seem versed in the issue:)