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Five Takeaways For Blockchain Companies Looking to Reg A+ For Security Token Offerings (STOs)

In a recent LinkedIn post, Darren Marble of CrowdfundX shared five realities for US blockchain companies looking to Reg A+ for their 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.