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"The new rule “very definitely is something that would work well for somebody who doesn’t need it, a company with a really big brand name,” said ralliBox founde
by caleblloyd 10y ago
"The new rule “very definitely is something that would work well for somebody who doesn’t need it, a company with a really big brand name,” said ralliBox founder David Kneusel. “But it is not something that is startup-oriented.”"
Actually I think it is startup friendly. It allows a startup with a strong balance sheet to get funding from average people (non-accredited investors) without the burden of being fully public.
Think consumer facing or businesses specific to a locale, especially ones that have a fan base that may want to invest. Not the sexiest to VCs, and not wanting to deal with going fully Public, but still could have a mutually beneficial relationship with investors.
It just so happens that it's not that friendly to the traditional "tech startup" that we think of, one that takes the capital and guidance of a VC to launch into profitably.
That being said, there still is a fair deal of work that goes into compliance, audits, and finding investors for Reg A+. Gven how rigged a standard IPO seems between the investing bank's cut and Friends and Family rounds, I'd say Reg A+ is a welcomed addition to funding options.