Other investment questions
What do you mean by a Regulation A filing?
In 2015, the U.S. Securities and Exchange Commission (“SEC”) adopted final rules mandated by Title IV of the Jumpstart Our Business Startups Act (“JOBS Act”), which amended Regulation A of the Securities Act of 1933, in order to make new investment opportunities available to investors other than “accredited investors”. The adoption of these new rules (referred to as “Regulation A+”, or just “Reg A”), which are divided into two tiers, permits companies to secure investments via crowdfunding for offerings up to $20 million in a 12-month period for a Tier 1 offering, and up to $75 million in a 12-month period for a Tier 2 offering. Further, the new rules allow companies to file less burdensome disclosure documents with the SEC than those required for a traditional IPO.
Fig uses Tier 2 of Regulation A+ for its offerings to non-accredited investors.