What is the difference between Regulation Crowdfunding (Ref CF) (TIII) and Regulation A+ (Reg A+) (TIV)?
StartEngine
Both Title III (Regulation Crowdfunding) and Title IV (Reg A+) help entrepreneurs crowdfund capital investments from unaccredited and accredited investors.
The differences between these regulations include:
Investor limitations
The differing amounts of money companies are permitted to raise
Reg CF campaigns can raise up to $5 million
Reg A+ campaigns can raise up to $75 million
Differing disclosure and filing requirements
Reg A+ campaigns require more frequent and in-depth reporting compared to Reg CF campaigns
Ability to transfer or sell shares
Shares purchased via Reg A+ campaigns can be freely sold after the campaign closes
Shares purchased via Reg CF campaigns must be held for 1 year before they can be sold
Please note that there is not an established market for shares of private securities and there is no guarantee you will be able to sell the shares once the shares are able to be sold