Five Takeaways For Blockchain Companies Looking to Reg A+ For Security Token Offerings (STOs)
According to Marble “US blockchain companies are now looking to Reg A+ to run their Security Token Offerings (STOs). However, it seems that there are many misconceptions.”
1. You need an auditor. Reg A+ requires 2 years of audited of financials.
2. You need a securities attorney. Reg A+ requires the filing of a Form 1-A with the SEC. It will take around 60 days to put together, and another 60-75 days to be qualified by the SEC.
3. You need a marketing firm. Reg A+ offerings don’t market themselves. The investor funnel requires KYC/AML, and it is complicated.
4. You may need an underwriter. There is little precedent of any company (blockchain or not) raising over $10 million without an underwriter/investment bank.
5. Have a (solid) plan. Marketing technical deals is not easy. Reg A+ has favored consumer products issuers and issuers with paying customers.
Check out the LinkedIn post HERE.