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Naming, Crowdfunding, How is the Brand Different than Pulp?, How is the…
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Crowdfunding
Reg A+
Higher raises are possible, but more legal red tape.
Reporting requirements: Annual reports, semi-annual reports, event reports.
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Time to market is unknown because for 1-A must be filed with SEC who needs to comment, and issuer must resolve comments. Online comments suggest potentially 16-20 weeks. :red_flag:
Tier 2
Tier 2 allows for annual offerings up to $75 million, and no more than $15 million of offers may come from selling security-holders affiliated with the issuer.
:!: Tier 2 companies must be audited.
Tier 1
Allows a maximum annual offering of $20 million, and no more than $6 million of this may be offered by selling security-holders affiliated with the issuer.
:!: Tier 1 companies’ finances must be reviewed
Security Token Offering
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Reserve Asset Token
Real Estate, Gold, etc where the
token is backed by the "reserve"
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Reg CF
As a general rule, think of Reg CF as the best option to raise less capital with fewer legal obligations.
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:red_flag: The funding group must be incorporated into the US and must primarily do business in the US or Canada.
:check: Companies may raise up to $5 million annually through both accredited and non- accredited investors.
:check: CF offerings must be made available online either through an SEC-registered funding portal or broker-dealer.
:red_flag: If investors income OR assets is less than 107k then they can only invest $2200 or 5% of the lesser of the investors annual income or net worth. (so if net worth is $0 or negative due to debt?)
If net worth and income are more than 107k they can invest up to 10% of the value of the lesser of the two.
:!: Issuers may rely on the efforts of the intermediary to determine that the aggregate amount of securities purchased by an investor does not cause the investor to exceed the investment limits, so long as the issuer does not have knowledge that the investor would exceed the investment limits as a result of purchasing securities in the issuer’s offering.
Meaning: It's the platforms responsibility to make sure investors are not violating those limits.
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