Regulation A is Awesome

Here’s the thing: something doesn't have to be perfect to be awesome.

Regulation A was born in 1936, but it was little used until the SEC modernized it in June 2015. From then through the end of 2024, about $9.4 billion was raised by 800+ issuers. We’ll talk about the comparisons to Reg D later, but for now, let’s say that $9.4 billion is a good start.

In a series of blog posts, I want to walk through what Reg A is and how it works. I’d also like to address the type of issuer who might be interested in exploring Reg A as a capital-raising solution.

When I was in CorpFin, I was one of the primary caretakers of Reg A (reporting companies rejoice), so I have a keen knowledge of this exemption. It is not perfect, as others have rightly said. But it is a great way for issuers to reach retail investors and to acclimate themselves to public reporting, albeit on a smaller scale than the 34 Act.