Regulation A+

<p><strong></strong>Discover how to raise money under new provisions in the recently enacted JOBS Act. <em>Regulation A+: How the JOBS Act Creates Opportunities for Entrepreneurs and Investors </em>will guide and advise executives of emerging growth companies, entrepreneurs, financial advisers, venture capitalists, investment bankers, securities lawyers, finance and MBA students, and others on how to raise up to $50 million a year through streamlined regulations. </p><p>Signed by President Obama on April 5, 2012, Title IV of the JOBS Act amends the 1930s-era Regulation A, making it far easier for businesses to raise growth capital through public offerings. It is, in effect, a new type of IPO but with much less regulation and cost. </p><p><em>Regulation A+: How the JOBS Act Creates Opportunities for Entrepreneurs and Investors</em> spells out new processes that can and will have a dramatic impact on how companies obtain growth capital to create new jobs and bolster returns for investors. Some financial gurus believe that the new law, dubbed Regulation A+ due to the enhancements, will usher in a revolutionary period of growth and innovation comparable to our largest past economic expansions. </p><p>To date, much of the commentary on the JOBS Act has focused on Title III, which allows broader use of crowdfunding to raise up to $1 million per year. However, many entrepreneurs and economists believe that new changes to Regulation A will have a much greater impact on innovation and job creation. The best part? Regulation A+ lifts many constraints on soliciting funds and trading new stock issues. Among other things, readers of this book will learn how to take advantage of these provisions: </p><ul><li>Regulation A+ permits companies to raise up to $50 million, a tenfold increase over the old limit of $5 million, and much more than the crowdfunding provisions of the JOBS Act ($1 million). </li><li>Regulation A+ allows companies to market IPOs to more people than just accredited investors and makes it easier to get the word out on offerings. </li><li>Regulation A+ allows certain companies to avoid the SEC periodic reporting regimen (Form 10-K, Form 10-Q, Form 8-K, and proxy statements), provided that the number of shareholders is kept below revised thresholds. </li><li>Regulation A+ exempts certain companies from many onerous and costly compliance requirements, including Sarbanes-Oxley. </li></ul><p>In short, Regulation A+ greatly simplifies the capital-raising process, making it easier to grow companies, create jobs, and reward investors.</p>