Almost four years after the JOBS (Jumpstart Our Business Startups) Act was signed into law by President Obama, changes in how businesses can raise capital are finally kicking into effect, about to take effect, and being utilized for the first time by entrepreneurs. Amid scores of articles debating these new options for raising funds, many people seem more confused than ever. Which raise options are subject to Blue Sky regulations? Can I raise $1 million from unaccredited investors? Can my portable jellybean factory startup raise money using Reg D, 506(c), whatever that is?
Do not fear! Part of our speciality here at Blak Box is helping startups wade through the complex labyrinth of funding paths. In this series of blog posts, we will be examining three of the options getting the most buzz lately due to the changes in the JOBS Act: Reg A+, Reg D, and Reg CF. First we’ll examine each of these options separately, and we’ll finish with an in depth comparison of how they measure up to each other, and look at which option might be best for your startup’s needs. Grab your wrist com and those GPS coordinates, and let’s head into the labyrinth!