Figured I would share after just coming across this interesting concept and one I am still working to wrap my head around. Wanted to get this around others to poke holes in and/or shed light on additional use cases. Most direct applications that I see would be for large CAPEX, organic growth capital, investor buyout, Bolt-Ons, etc.
The two most applicable JOBS ACT of 2012 Exempt Offerings would be the:
Regulation CF: $5M limit
Reg A Tier I: $20M limit
2020 Stats
$140M raised
1,085 cities
447 Industries
750k investors
(On track to reach $400M+ in 2021 with $121M raised in just Q1 2021 so far)
5 Methods
Debt
• Bond
• Term Loan
• Revenue Share Agreement (RSA)
Equity
• Simple Agreement for Future Equity (SAFE)
• Sell Shares
A few Key Components
--You as the issuer define the terms. (ex. Issuing a “Patriot Business Bond” with a 10% coupon, Interest only payments (semi-annual), 5-year maturity)
--Offering the public an exempt security. Open to both Retail and Accredited investors.
--Raise capital and test the market at the same time
--Unlock the potential for Self-Directed IRAs to participate
Commitments
Time: 4-15 months
Cost: $6k - 12k and 8% of raise
Please feel free to reach out directly to John (contact info below) or I am happy to facilitate a warm introduction as well.
John Panaccione
--@----.com style='text-decoration:underline;' target='_blank' href='//www.follacapital.com'>www.follacapital.com
^Searchfunder member - John would love to facilitate a webinar with the SearchFunder group if that would be of interest. His overview is about 90 minutes so would probably have to be one of the longer ones.
Raising Capital Using Investment Crowdfunding

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I don't believe RegA+ has the same prohibition, but RegA+ costs a few hundred thousand to kickoff