Choosing between Reg A+ and Reg CF isn't always an obvious choice. They have drastically different requirements and potential outcomes but often companies get hung up on which mechanism to utilize.
This is where it's important to do a self assessment as a company:.
- Where is the company in its life-cycle?
- Is the company growing revenues or have revenues?
- What resources does the company have?
- What timetable are funds needed in?
From a public perception standpoint, you never want your company to incur failure; therefore starting with a more limited offering that can be highly successful is usually the best choice. If a Company were to go out with a Reg A+ and fail to hit a minimum of $500,000, why would everyone ever want to invest in a subsequent Reg CF. On the flip side, if you sell out of a limited Reg CF, there may be additional appetite for a larger Reg A+ in the future. It's not always about how much you can raise, but how wisely you can do it.
If you struggle to make a choice, contact us. While we can't choose for you, we can act as a sounding board and provide options and perspective.