THE MADE TO ORDER PRIVATE CAPITAL PLATFORM

Regulation A is an SEC exemption regulation from registration for public offerings.  Private companies can use Reg A+ to raise private capital for their company.  Regulation A has two offering tiers: Tier 1, for offerings of up to $20 million in a 12-month period; and Tier 2, for offerings of up to $75 million. For offerings of up to $20 million, companies can elect to proceed under the requirements for either Tier-1 or 2.

For the last 8 decades, private companies could only raise capital from accredited investors, or the wealthiest 1% of Americans. In April, 2012, President Obama signed a landmark piece of legislation called The JOBS Act, allowing business owners to go to the public and advertise their capital raises.

In May of 2016, four years after the JOBS Act was signed, Title III (aka Regulation CF) of the JOBS Act went into effect, allowing private early-stage companies to raise money from US Citizens.

Title III of the JOBS Act outlines Reg CF as allowing private companies to raise up to $5 million from US Citizens. Before the Act, capital raising options were limited to private companies raising money from accredited investors only.

Like a Kickstarter campaign, Reg CF allows companies to raise funds online from their early adopters and the investor community. However, instead of providing investors a reward such as a gadget or a product, investors receive securities, typically equity, in the startups they back.