In the dynamic landscape of equity crowdfunding, entrepreneurs seek innovative ways to access capital and investors seek opportunities for growth. One such avenue that has gained significant attention is Regulation A+ (Reg A+). This regulation, introduced as part of the JOBS Act, provides a unique framework that enables companies to raise funds from both accredited and non-accredited investors through a streamlined offering process.
Whether you are a startup founder exploring your first capital raise or a growth-stage company looking to scale, understanding how Reg A+ works — and how it differs from other fundraising regulations — is essential. In this comprehensive guide, we explore the mechanics, advantages, process, real-world success stories, market data, and strategic considerations for leveraging Reg A+ in your equity crowdfunding campaign. For expert guidance on Reg A+ campaigns, Growth Turbine’s Reg A+ marketing services can help you reach the right investors at scale.
Understanding Reg A+ and Its Significance
Regulation A+ is an exemption from the traditional Securities and Exchange Commission (SEC) registration process, allowing companies to conduct public offerings of securities. It offers two tiers:
- Tier 1: For offerings up to $20 million within a 12-month period
- Tier 2: For offerings up to $75 million within a 12-month period
Compared to traditional equity crowdfunding frameworks like Reg CF and Reg D, Reg A+ offers several significant advantages for both entrepreneurs and investors. It is sometimes called a “Mini-IPO” because it provides many benefits of a public offering without the full cost and complexity of a traditional IPO. For a deeper exploration of the Mini-IPO framework, see our guide on Reg A+: The Path to Mini-IPOs and Wider Investment Opportunities.
Pro Tip: The $75 million Tier 2 cap was increased from the original $50 million limit in 2021 — making Reg A+ even more attractive for growth-stage companies that need significant capital. If your raise target exceeds $20 million, Tier 2 is typically the better path despite its additional reporting requirements.
What is Reg A+ and How Does It Differ from Traditional Equity Crowdfunding?
Reg A+ differs from traditional equity crowdfunding in several key aspects. While traditional crowdfunding (such as Regulation Crowdfunding / Reg CF) typically limits the amount raised and the pool of investors, Reg A+ allows for larger fundraising goals and broad investor participation. It offers a more inclusive approach by allowing non-accredited investors to participate, expanding the potential investor base significantly.
Here is how the key regulations compare:
- Reg CF: Capped at $5 million per year; open to all investors but with individual investment limits
- Reg D 506(c): No fundraising cap but restricted to accredited investors only; permits general solicitation
- Reg A+ Tier 2: Up to $75 million; open to both accredited and non-accredited investors; securities are freely tradable
For a detailed side-by-side breakdown of all major equity crowdfunding regulations, see our comprehensive comparison: Reg CF vs Reg D 506(b) vs Reg D 506(c) vs Reg A+ vs Reg S.
The Advantages of Reg A+ for Entrepreneurs and Investors
Reg A+ presents numerous benefits for entrepreneurs and investors alike. Here are the key advantages:
1. Increased Fundraising Potential: Under Reg A+, companies can raise up to $75 million, depending on the tier, enabling access to substantial capital to fuel growth and expansion. This is a significant step up from other equity crowdfunding options available today.
2. Broader Investor Base: Unlike Reg D 506(c), which is limited to accredited investors, Reg A+ allows both accredited and non-accredited investors to participate. This opens up investment opportunities to a larger pool of individuals, democratizing access to potential returns.
3. Enhanced Market Exposure: Through Reg A+, companies gain exposure to a wider audience of potential investors. This expanded reach can attract additional attention, support, and validation for the venture.
4. Potential for Liquidity: Reg A+ enables companies to offer securities that are freely tradable. This provides investors with the opportunity to potentially sell their shares in secondary markets, enhancing liquidity and flexibility — a key differentiator from Reg D and Reg CF offerings.
5. Marketing and Branding Benefits: The Reg A+ process requires companies to create a comprehensive offering circular, which serves as a marketing document. This document can raise awareness, promote the company’s brand, and attract investor interest. Working with a specialized Reg A+ marketing agency can amplify these benefits significantly.
Pro Tip: One of the most underappreciated advantages of Reg A+ is the “testing the waters” provision. Before filing with the SEC, companies can gauge investor interest through marketing materials. This lets you validate demand before committing to the full cost of an offering — something not available under most other exemptions.
The Process of Utilizing Reg A+ for Equity Crowdfunding
To leverage the benefits of Reg A+ effectively, entrepreneurs need to understand the process involved. Here are the key steps:
Step 1: Preparing the Offering Statement
The first step is to prepare the offering statement, also known as the Form 1-A. This document includes essential information about the company, its business model, financials, risks, and the proposed use of funds. It requires careful attention to detail, as it serves as the foundation for attracting investors and gaining regulatory approval.
Step 2: SEC Review and Qualification
Once the offering statement is prepared, it needs to be submitted to the SEC for review and qualification. The SEC ensures compliance with regulations, conducts a thorough assessment, and provides feedback. This step requires coordination with legal and financial experts to address any concerns raised by the SEC.
Step 3: Marketing and Solicitation
After receiving qualification from the SEC, companies can begin marketing and soliciting potential investors. This phase involves leveraging various marketing channels — both online and offline — to generate awareness, attract interest, and drive investor engagement. Companies that partner with experienced investor acquisition teams during this phase typically see significantly better conversion rates.
Step 4: Investor Acquisition and Fundraising
The final step is to actively acquire investors and raise funds. This can involve utilizing equity crowdfunding platforms, engaging with investment communities, and implementing targeted marketing strategies to reach the intended investor audience. Platforms like StartEngine, Republic, and Dalmore Group are popular choices for Reg A+ offerings.
Pro Tip: The SEC review timeline for Reg A+ offerings typically runs 60–120 days. Smart issuers use the “testing the waters” period during SEC review to build an investor waitlist. By the time qualification is received, you can hit the ground running with a warm audience ready to invest. This strategy alone can shorten the fundraising timeline by 30–50%.
Real-World Examples of Successful Reg A+ Offerings
Several companies have successfully utilized Reg A+ to raise funds and fuel their growth. Here are notable examples that demonstrate the regulation’s potential:
Aptera Motors
Aptera Motors, an electric vehicle manufacturer, raised funds on Republic through a Reg A+ crowdfunding campaign. Led by founder Chris Anthony since 2019, the company specializes in producing highly energy-efficient vehicles with optimized manufacturing processes and cost savings. With a crowdfunding target ranging up to $41,270,000 and no minimum requirement, the funds were allocated to development, production, and general administrative expenses.
Source: Inside EVs & KingsCrowd
Monogram Orthopedics
Monogram Orthopedics, valued at $246 million, raised funds on Republic through Reg A+ crowdfunding. They revolutionized joint replacement technology with personalized orthopedic implants using 3D printing and robotics. Their FDA-approved Monogram Knee System addresses real problems in the orthopedics space. The campaign aimed to raise up to $30 million for payroll, marketing, R&D, product commercialization, and general expenses.
Source: KingsCrowd
These success stories illustrate how companies across diverse industries — from clean energy vehicles to medical devices — can leverage Reg A+ to access the capital they need to scale. For more examples of crowdfunding success, check out our article on the 25+ Biggest Crowdfunding Success Stories.
The Impact of Reg A+ on Equity Crowdfunding Market Growth
Reg A+ has had a transformative impact on the equity crowdfunding market, driving growth, expanding opportunities, and reshaping fundraising dynamics:
- Democratized Access to Capital: Reg A+ allows both accredited and non-accredited investors to participate, opening doors for a wider range of individuals to support promising ventures.
- Amplified Fundraising Potential: Companies can raise larger amounts of capital — up to $20 million or $75 million, depending on the tier — empowering ambitious growth plans and innovation.
- Enhanced Investor Protection: Reg A+ incorporates transparency measures, providing investors with essential information to make informed decisions and boosting investor confidence.
- Fueled Market Expansion and Innovation: Reg A+ has fostered competition, innovation, and the emergence of specialized platforms and services catering to Reg A+ offerings.
- Stimulated Economic Growth and Job Creation: Successful Reg A+ campaigns accelerate growth, expand operations, and create employment opportunities, contributing to local economies.
Statistical Analysis: Reg A+ Market Data
Valuation Trend
The total valuation of all equity Regulation A (Reg A) companies raising in May 2023 was $6.6 billion. This is a month-over-month change of -6.2% from April 2023 ($7.0 billion) and a year-over-year change of -64.2% from May 2022 ($18.3 billion).
On average, each Reg A raise in May 2023 had a valuation of $152.7 million. This indicates a slight increase of 0.3% from the previous month ($152.3 million) but a notable decline of 44.2% compared to the same month last year ($273.7 million).
Source: KingsCrowd
Amount Raised
In May 2023, a total of $4.2 million was raised under Reg A. This represents a decrease of 30.3% compared to April 2023 ($6.1 million), and a significant decrease of 88.0% compared to May 2022 ($35.2 million).
On average, each Reg A campaign in May 2023 raised $98.3k, which is 25.4% lower than the previous month ($131.8k), and a substantial decrease of 81.3% compared to the same month last year ($524.7k).
Source: KingsCrowd
Top Reg A Equity Crowdfunding Platforms
The top four Reg A platforms in May 2023 were StartEngine, Dalmore Group, Republic, and CrowdFund Mainstreet. These four platforms accounted for 100.0% of all capital raised in May. For an in-depth comparison of these platforms, see our analysis: Wefunder vs Republic vs StartEngine vs Dalmore vs Issuance.com vs DealMaker.
Source: KingsCrowd
Market Opportunities and Potential for Entrepreneurs
The availability of Reg A+ has opened up new market opportunities for entrepreneurs seeking alternative fundraising options. It provides a viable pathway for companies at various stages of growth to access capital, attract investors, and advance their business objectives. The potential for success is not limited to any specific industry, as Reg A+ has proven beneficial for companies across sectors, including technology, real estate, healthcare, and more.
Industries that are particularly well-suited for Reg A+ offerings include:
- Real Estate: Real estate funds and real estate crowdfunding projects benefit from Reg A+’s higher capital limits
- Technology & SaaS: SaaS companies with clear growth metrics find Reg A+ ideal for scaling
- Clean Energy & EV: As demonstrated by Aptera Motors and similar ventures
- Healthcare & Biotech: Companies like Monogram Orthopedics show the pathway for health tech fundraising
- Fintech: Fintech companies leveraging equity crowdfunding for capital formation
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Schedule a Free ConsultationConclusion: Unlocking the Power of Reg A+ in Equity Crowdfunding
Reg A+ presents a valuable opportunity for entrepreneurs to leverage the benefits of equity crowdfunding on a broader scale. By understanding the process, learning from successful examples, and recognizing the market impact, entrepreneurs can position themselves for success.
The key takeaways for companies considering a Reg A+ offering:
- Know your tier: Choose Tier 1 (up to $20M) or Tier 2 (up to $75M) based on your capital needs and willingness to meet ongoing reporting requirements
- Plan for timeline: Budget 60–120 days for SEC qualification, plus time for marketing and fundraising
- Invest in marketing: The success of your Reg A+ offering depends heavily on your ability to reach and convert investors at scale
- Choose the right platform: Select a crowdfunding platform that specializes in Reg A+ offerings and aligns with your industry
- Work with experts: Partner with legal counsel, financial advisors, and specialized marketing agencies experienced in Reg A+ campaigns
At Growth Turbine, we specialize in equity crowdfunding and investor acquisition, and we can help you navigate the intricacies of Reg A+ to optimize your crowdfunding strategy. With over 200+ campaigns supported and $490M+ in capital raise assisted, our team brings the expertise needed to maximize your Reg A+ offering.
Pro Tip: The most successful Reg A+ campaigns combine paid digital advertising with organic content marketing. Running targeted ads to investors on social media while simultaneously publishing educational content about your offering creates a powerful “air cover + ground game” approach that drives both awareness and conversions. Companies that use this dual-channel strategy typically raise 2–3x more than those relying on platform traffic alone.
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Get Started TodayFrequently Asked Questions
What is Reg A+ and how does it work?
Regulation A+ (Reg A+) is an SEC exemption introduced under the JOBS Act that allows companies to raise up to $75 million from both accredited and non-accredited investors through a streamlined public offering process. Companies file a Form 1-A offering statement with the SEC, receive qualification, and then market and sell securities to investors — similar to an IPO but with reduced regulatory burden and cost.
What is the difference between Reg A+ Tier 1 and Tier 2?
Tier 1 allows companies to raise up to $20 million within a 12-month period and requires compliance with state securities laws (Blue Sky laws) but has no ongoing reporting requirements. Tier 2 allows raises up to $75 million, preempts state securities laws, but requires audited financial statements and ongoing semi-annual and annual reporting to the SEC.
How does Reg A+ differ from Reg D 506(c) and Reg CF?
Reg A+ allows both accredited and non-accredited investors to participate and offers securities that are freely tradable, with a $75M cap. Reg D 506(c) has no fundraising cap but is restricted to accredited investors only. Reg CF is limited to $5 million and has individual investor limits. For a full comparison, see our guide on equity crowdfunding regulations.
Can non-accredited investors participate in Reg A+ offerings?
Yes, Reg A+ is specifically designed to allow both accredited and non-accredited investors to participate. Under Tier 2, non-accredited investors can invest up to 10% of their annual income or net worth per offering, whichever is greater. This democratizes access to investment opportunities that were previously available only to wealthy or institutional investors.
How long does the Reg A+ SEC qualification process take?
The SEC review and qualification process for a Reg A+ offering typically takes 60 to 120 days from the initial filing of the Form 1-A. The timeline can vary depending on the complexity of the offering, the quality of the initial filing, and whether the SEC requests additional information or revisions.
What are the costs associated with a Reg A+ offering?
A Reg A+ offering typically involves costs for legal counsel, SEC filing, audited financial statements (required for Tier 2), platform fees, and marketing. Total costs can range from $100,000 to $500,000+ depending on the tier and scope of the offering. However, these costs are significantly lower than a traditional IPO, which can cost $1 million or more.
What is "testing the waters" in Reg A+?
Testing the waters is a unique Reg A+ provision that allows companies to gauge investor interest before or during the SEC qualification process. Companies can use marketing materials to assess demand without being committed to completing the offering. This is a powerful advantage because it lets issuers validate their fundraising thesis before incurring the full cost of an offering.
Which platforms are best for Reg A+ equity crowdfunding?
The leading platforms for Reg A+ offerings include StartEngine, Dalmore Group, Republic, and CrowdFund Mainstreet. Each platform has different strengths, fee structures, and investor networks. For a detailed comparison, read our analysis of top equity crowdfunding platforms. Choosing the right platform depends on your industry, raise size, and target investor profile.
What industries benefit most from Reg A+ offerings?
Reg A+ has proven beneficial across many industries, including real estate, technology, healthcare and biotech, clean energy, fintech, and consumer products. Any company with a compelling story, clear use of funds, and a product or service that resonates with retail investors can benefit from a Reg A+ offering.
How can a marketing agency help with my Reg A+ campaign?
A specialized Reg A+ marketing agency like Growth Turbine can significantly improve your campaign’s success by developing targeted investor acquisition strategies, creating compelling marketing materials, running paid advertising campaigns, optimizing conversion funnels, and leveraging data analytics to continuously improve performance. Companies that work with experienced agencies typically raise more capital in less time than those who attempt to self-market their offerings.
