The world of raising capital has been evolving over the last several years. Offerings of securities generally used to fall into two main buckets: (i) private placements under the old Rule 506 or (ii) a public offering. With the implementation of various provisions of the JOBS Act now mostly complete, the array of choices has increased exponentially and include crowd funding, crowd sourcing by general solicitation for accredited investors, IPO light under the new Reg A+ rules, and confidentially submitted initial public offerings.
Enacted in June 2015, Regulation A+ allows private companies in Canada and the United States to raise money through general solicitation. Pamela Greene, a Member of Mintz Levin's Corporate & Securities Practice, explains the benefits of a Reg A+ offering over an IPO.