Regulation A+ is often described as a mini-IPO. In some ways, the process similar to an IPO, in that the business files a disclosure document with the SEC and is subject to a SEC comment process. However, the disclosure is not as extensive as an IPO and not as expensive.
Regulation CF is the best solution for early-stage startups. Regulation A+ Offerings is a much better solution for companies with revenue or Biotech companies without revenue who are interested in growth capital. A company with revenues (or Biotech) may qualify for a traditional Initial Public Offering (IPO).
Every Regulation A+ offering is different, and the costs for each fluctuates based on factors such as company size and intentions. A company will need about $250K – $300K to launch a Reg A+ Offering before cash comes in. Reg A+ investor funds can be used to buy additional advertising during the Offering. The total costs including Broker Dealer commissions averages about 10% of the total raise.
Companies can typically start raising funds in 4-8 months.