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 $50 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.

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