Regulation A and Regulation CF (Reg A and Reg CF, respectively) are both securities regulations in the United States that allow for crowdfunding.
Regulation A is a SEC regulation that allows companies to raise up to $20 million in a 12-month period from both accredited and unaccredited investors. Companies are required to file offering statements with the SEC and provide ongoing reports to investors.
Regulation CF (or Regulation Crowdfunding) is also a SEC regulation, but it allows companies to raise a maximum of $1.07 million in a 12-month period, and is more focused on small start-ups and entrepreneurial ventures. Only unaccredited investors can participate in Reg CF offerings, but the offering process is less costly and simpler than under Reg A.
Both Reg A and Reg CF are part of the JOBS Act (Jumpstart Our Business Startups Act) of 2012 that lifted many restrictions on small and emerging companies. Reg A is considered a more established and traditional route for raising capital, while Reg CF is relatively newer and focused on startups and early-stage companies.
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