The Benefits of combining a Reg D with your Reg A+

Understanding the differences between Reg A+, Reg D, Reg S, and Rule 144A is essential for companies looking to raise capital effectively. Each regulation offers unique benefits and is tailored to specific types of investors and fundraising strategies. Whether you’re a startup, a growing business, or an established company, choosing the right regulation can significantly impact the success of your capital raise.
At Manhattan Street Capital, we specialize in guiding companies through these pathways, ensuring a seamless and efficient process.

Regulation A+
Reg A+ is often referred to as a "mini-IPO" because it is a type of public offering that allows companies to raise up to $75 million annually from both accredited and non-accredited investors. This regulation is divided into two tiers: Tier 1 (up to $25 million) and Tier 2 (up to $75 million). Tier 2 is the most commonly used because it preempts state Blue Sky laws, making it easier to market the offering across the U.S. Reg A+ can also be used to raise capital internationally.

Reg A+ is particularly attractive for companies that want to raise capital while building brand awareness, as it allows for general solicitation and public advertising. It is also a great option for companies that want to list on exchanges like NASDAQ or NYSE, providing potential liquidity for investors. However, companies must meet certain requirements, such as providing two years of audited financials (if the company has existed for that long) and ongoing SEC reporting for Tier 2 offerings.

At Manhattan Street Capital, we assist companies with every step, from introducing top-tier service providers to optimizing marketing strategies for cost-effective capital raising, while our investment software platform makes it easy for investors to complete their investments..

Regulation D
Reg D is a private placement regulation that allows companies to raise unlimited capital from accredited investors. It is divided into two main rules: Rule 506(b) and Rule 506(c).

Rule 506(b): This rule allows companies to raise capital without general solicitation or advertising. Companies can accept up to 35 non-accredited investors, but all investors must meet sophistication requirements. This option is ideal for companies that already have a network of potential investors and want to avoid the costs associated with public advertising.

Rule 506(c): This rule permits general solicitation and advertising, but all investors must be verified as accredited. This makes Rule 506(c) a powerful tool for companies that want to reach a broader audience of accredited investors through online marketing and other public channels.

Reg D offerings are faster and less costly to execute compared to Reg A+ because they do not require SEC Qualification or ongoing reporting. However, they are limited to accredited investors, which restrict the investor pool. At Manhattan Street Capital, we help companies navigate the complexities of Reg D offerings, ensuring compliance and effective marketing to accredited investors.