A Regulation A+ offering is unique because it allows companies to advertise their offering while accepting funds from non-accredited investors publicly.
Regulation A has been around for years but was never widely used because of its high qualification burden and costs relative to the low amount that may be raised (the max offering amount is currently capped at $5 million per year). However, with the passage of the JOBS Act in 2012, the SEC implemented changes to Regulation A, most notably an increase in the maximum dollar amount that may be offered by the issuer. Under Tier 1, companies can raise up to $20 million per year from accredited and non-accredited investors. Under Tier 2, companies can raise up to $75 million per year from accredited and non-accredited investors, but there are certain limits on the individual’s investment. Since a Regulation A+ offering is like a mini-IPO, issuers must have their offering documents and disclosures qualified with the SEC.