On March 25, the Securities and Exchange Commission unveiled what is being commonly referred to as Regulation A+. Mandated by Title IV of the JOBS Act, Regulation A+ is being heralded as a game changer for small business financing in the United States and Canada.
Bankless Times is gathering opinions from the altfi community and will publish initial reactions and interesting links in this space.
Interviews with and opinion pieces by members of the altfi community will be published throughout the week.
All 453 pages of the SEC’s final rules can be downloaded here.
Dara Albright is hosting a free webinar with Congressman David Schweikert, a driving force behind Title IV, and securities attorney Samuel Guzik On April 8 at 1:00 PM eastern. They will explain the rules and their impact on small cap IPO’s. The role of venture exchanges will also be addressed.
“These new rules provide an effective, workable path to raising capital that also provides strong investor protections. It is important for the Commission to continue to look for ways that our rules can facilitate capital-raising by smaller companies.”
SEC Chair Mary Jo White
“Without extending preemption to Tier 1 offerings, it doesn’t appear the SEC reduced the regulatory burden enough to make Tier 1 a viable capital source for small businesses. However, by including preemption from state securities law regulation in Tier 2, the SEC may have done a better job of balancing the regulatory burden with the ability to access capital. “
David Lavin, J. Eric Quinn, and Christian Gonzalez, Dinsmore Law Group, as published in The National Law Review
“But (the) SEC remained firm on the proposed rules for Regulation A+, letting companies raise capital without meeting state-to-state compliance and spending exorbitant amounts in registering offerings.”
David Drake, Chairman of LDJ Capital, writing in the Huffington Post
“The new rules, which include modifications to Regulation A, are an important step towards making Regulation A+ a viable alternative for small companies seeking access to public capital.”
Jeffrey M. Solomon, Co-Chair of the Equity Capital Formation Task Force and President of Cowen Group
“Regulation A+ establishes a more useful and practical means for growth companies to raise capital, achieving the intended goals of Congress. Improved access to capital, while balancing investor protection concerns, will provide these companies the opportunity to grow and create jobs in the private sector.”
Scott Kupor, ECF Task Force Co-Chair and Managing Partner of Andreessen Horowitz
“The long-awaited promise of democratizing investment in startups and small businesses in the U.S. through equity crowdfunding laws is about to be fulfilled.”
Crowdfunder.com CEO Chance Barnett, writing in Forbes.
“The adoption of Reg A+ by the SEC is a game changer. We believe Reg. A+ has the potential to open the floodgates to capital for U.S. entrepreneurs, especially small and emerging businesses, in amounts never imagined before.”
Sunny Barkats, New York-based corporate securities and finance attorney