Dual Raise Strategy Overview
This document outlines the structure, rationale, and operational flow for running a dual raise: a Regulation CF offering alongside a Regulation A+ offering.
🎯 Objectives
- Reduce funding risk by running Reg A+ as a follow-on or parallel strategy
- Increase capital ceiling beyond the $5M Reg CF limit (up to $75M under Reg A+ Tier II)
- Appeal to a wider investor base, including both retail and accredited investors
- Build platform credibility with early regulatory compliance and scale
🧩 Structure Breakdown
| Component | Reg CF Raise | Reg A+ Raise |
|---|---|---|
| Raise Limit | $5M (per 12-month period) | $20M (Tier I) / $75M (Tier II) |
| Investors | All U.S. investors (some limits) | Accredited + non-accredited (Tier II) |
| Legal Filings | Form C via funding portal | SEC-qualified Form 1-A |
| Costs | Low–Moderate (portal + filing) | Moderate–High (audit, legal, SEC review) |
| Timeline | 2–4 weeks to launch | 3–6 months to qualify |
| Marketing | Limited (tombstone only) | General Solicitation Allowed |
🔧 Execution Model
- Reg CF goes live first on your own UI via a white-labeled portal (e.g., North Capital)
- CF raise builds proof-of-concept, user base, and initial liquidity
- Simultaneously or shortly after, prepare and file Form 1-A for Reg A+
- Use Reg A+ to expand reach, fund future issuers, or build platform treasury
📈 Strategic Value
- Protects downside — If Reg CF stalls, Reg A+ can provide backup capital
- Enables marketing scale — Reg A+ allows full general solicitation (paid ads, video, influencer marketing)
- Attracts institutional or larger checks — Many early investors prefer Reg A+ for clearer protections