What is Title IV Regulation A+

What is Title IV of the JOBS Act?
Can anyone invest now that Title IV has passed?
Do I still need to verify my investor status?
What steps do I need to take if I want to fundraise under the Regulation A+ exemption?
What restrictions are there for non-accredited investors investing in Reg A+ deals?


What is Title IV of the JOBS Act?

Title IV allows startups and later stage pre IPO companies to use equity crowdfunding platforms like Crowdfunder to raise as much as $50M from both accredited and non-accredited investors.

Title IV is broken up into two tiers, Tier 1 and Tier 2. Tier 1 allows you to raise up to $20M while Tier 2 allows you to raise up to $50M. Check out the key differences between the two tiers below.

Tier 1 – Raise up to $20M 

  • Anyone can participate

  • You can publicly advertise

  • Reviews financials

  • Must pass a state coordinated review

  • No limit on investment

Tier 2 – Raise up to $50M

  • Anyone can participate

  • You can publicly advertise

  • Preempts Blue Sky Laws in each state

  • Requires Audited Financials

  • Non-accredited limit at 10% of income/net worth per year

Can anyone invest now that Title IV has passed?

Yes, now anyone can invest in startups if they fundraise under the Title IV Regulation A+ exemption.


Do I still need to verify my investor status?

If you are an accredited investor you should still verify your accredited status to get access to the deals that are not raising under the Title IV Regulation A+ exemption. Verify your accredited status here.


What steps do I need to take if I want to fundraise under the Regulation A+ exemption?

See the steps below for Tier 1 and Tier 2 of Title IV:

Tier 1

  1. File a disclosure document with the SEC and get approval

  2. Have your financials reviewed

  3. Must pass a state coordinated review

Tier 2

  1. File a disclosure document with the SEC and get approval

  2. Financials audited

  3. Disclosure requirements: annual, semi-annual and current reports

What restrictions are there for non-accredited investors investing in Reg A+ deals?

For Tier 1, the investor has no restrictions on the amount they investment.

For Tier 2, non-accredited investors have caps on how much they can invest. They can invest a maximum of 10% their annual income/net worth per year, depending on which is greater.


Entrepreneurs: Start Fundraising

Investors: Start Investing