What is Reg A+ Equity Crowdfunding?
Title IV (Regulation A+) of 2012’s JOBS Act, commonly referred to as “Reg A+” allows privately-held companies to sell shares to the public, very much like a traditional IPO. This rule went into effect for the first time on May 16th, 2015.
Before Reg A+ took effect, privately-held companies like XY Findables could only accept investments from “accredited investors” — those with an annual income of more than $200,000 or a net worth of at least $1 million, excluding their homes. “Non-accredited investors”– the other 94% of American investors – could generally only invest in publicly traded companies listed on exchanges like the NASDAQ or NYSE. This prohibited your average investor from getting in on the ground floor by investing in early-stage tech companies. Because of this restriction, nearly all “angel investing” (think Shark Tank) in companies like Facebook, Uber, and Airbnb came from the very affluent or from investment funds and firms.
Reg A+ is also referred to as “equity crowdfunding,” since, similar to sites like Kickstarter and Indiegogo, a Reg A+ offering generally receives relatively small investments from a large number of people. Traditional crowdfunding sites offer supporters free products or perks, but can’t offer shares in the company. Companies such as Oculus developed products using the funds from crowdfunding, but were not allowed to offer their early supporters equity. Oculus sold for $2 Billion to Facebook, which would have been a 145x return for their supporters if they were just allowed to receive stock instead of a first generation device.
In short, Reg A+ gives companies like XY Findables the ability to offer early stage ownership to customers, supporters, or any other individual. We see this as a win/win for both XY and our customer/owners. Not only does it give us the capital that is needed to sustain our rapid growth, but it also allows our owners to be part of our entrepreneurial experience. It also puts pressure on us, since now we are not only responsible for our own investment of time and money, but also for working every day to get a return for our investors.
You can find out more about the XY Findables Reg A+ Offering at https://www.xyfindables.com/
SEC DISCLAIMER AND FORWARD-LOOKING STATEMENTS:
AN OFFERING STATEMENT REGARDING OUR XY REGULATION A+ OFFERING HAS BEEN FILED WITH THE SEC. THE SEC HAS QUALIFIED THAT OFFERING STATEMENT, WHICH ONLY MEANS THAT THE COMPANY MAY MAKE SALES OF THE SECURITIES DESCRIBED BY THE OFFERING STATEMENT. IT DOES NOT MEAN THAT THE SEC HAS APPROVED, PASSED UPON THE MERITS OR PASSED UPON THE ACCURACY OR COMPLETENESS OF THE INFORMATION IN THE OFFERING STATEMENT. YOU MAY OBTAIN A COPY OF THE OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT FROM HERE.
YOU SHOULD READ THE OFFERING CIRCULAR BEFORE MAKING ANY INVESTMENT.
OFFERING DOCUMENTATION CAN BE FOUND AT www.xyfindables.com/offering