Tag Archives: Angel Investor

TSG’s Highlights from the Connection Innovation Report: San Diego

TSG’s Highlights from the Connection Innovation Report: San Diego

CONNECT, a San Diego non-profit helping to create and scale innovation companies, assists entrepreneurs by providing resources that allow them to grow their business. Since 2005, they have measured the growth in economic innovation in San Diego. We highlighted the key findings of the report to showcase the advancement of San Diego’s entrepreneurial growth. We recommend that all San Diego entrepreneurs read the full Connect Innovation Report to stay up to date with startup trends and growth insight of the community!

San Diego Created 405 New Innovation Startups in 2015

Over 1,600 new jobs were created in San Diego by just innovation startups alone. The various industries include: Software (255), Life Sciences (82), Communication, Computer & Electronics (50), Aerospace, Navigation and Marine Tech (8), Environmental Technology (7) and Recreational Goods (3).

Ranked First in California For New Innovation Life Sciences Startups Created in 2015

According to the report, over 3,700 new tech and life sciences companies have been created between 2005-2015. San Diego also ranked second in the number of communications technology, recreational goods manufacturing and environmental technology startups in 2015.

Innovation Economy Grows To An All-Time High

2015 proved to be a historic year for innovation economy, creating nearly 149,440 high-paying jobs. That’s 11% of total employment in San Diego County with the city of Carlsbad arriving at number one, having the most new innovation startups created, a total of 63. Downtown San Diego (54) and Sorrento Valley (52) weren’t far behind.

Top Ten U.S. Metros for Startup Activity and Growth Entrepreneurship

San Diego ranked 7th using the Kauffman Index of Growth and Entrepreneurship, which gives equal weight to the rate of new entrepreneurs, opportunity share of new entrepreneurs, and startup density of a region.

VC Funding in Software Sector Surged in 2015

Invested in 28 deals, the total venture capital funding for the software sector was $240 million in 2015. This is an increase of 150% from 2014.

Mergers & Acquisition (M&A) Closed More Than $31 billion in Technology and Life Sciences Where a San Diego Company Was Either a Target or Buyer

The M&A area is dominated by life sciences companies. Medical devices sector accounted for 12 deals totaling $15.4 billion. This is almost half of all M&A deal value for San Diego’s innovation economy.

Research Grants

More than $1.29 billion in various grants were awarded to San Diego research institutes and companies. This ranks San Diego county 2nd in California behind Los Angeles County for NIH and NSF grant funding received in 2015.

We encourage all of the startup savvy founders in San Diego to read the full report on the CONNECT website.

The continuous growth and increasing number of startups in San Diego, calls for the need of a support structure and foundation crucial for success. TSG serves as an invaluable source of information into the startup environment, and in particular, the San Diego startup community. We take pride in providing critical information, tailored business plans and financial projections that propel companies forward to sustainable growth. Please continue to follow up with us on social media and reach out to us with your startup questions and inquiries of your business or idea!

5 Excellent Startup Tips on Securing a Bank Loan

Bank Loan Tips From The Startup Garage

5 Excellent Startup Tips on Securing a Bank Loan

It’s no secret that securing bank funding for your startup is difficult these days – but it’s not impossible.

Give yourself better odds with these 5 simple
Startup tips:

Write a clear and convincing business plan.

Business owners must build a strategy from the very beginning around being “lendable,” so a business plan helps lay that proper foundation. Focus especially on the financial estimates and offer well-researched documentation for those estimates.

In addition, be sure to illustrate in your plan how you will generate revenue, how
much you’ll generate and how long it will take to get to positive cash flows. (Side tip: you may
want to have a CPA look over your financials beforehand).

Boost your credit rating.

A solid credit score lends legitimacy to your request and shows you’re less of a financial risk to the bank. They’ll want to see that you have a history of paying bills on time, as well as your history of minimizing outstanding debt. Have a less than desirable credit score?

Seek out smaller, more local banks, since large banks typically are pickier as to the kinds of businesses they want to work with. Smaller ones may be more forgiving of new businesses and may have less stringent credit requirements for opening accounts and lines of credit.

Launch your business in a solid industry.

Certain industries, such as food service and apparel,are considered extremely risky by potential lenders. Thus, if you are determined to get bank funding, consider an industry that doesn’t depend on fluctuating resources (such as oil prices) and has a relatively large profit margin.

Once selecting that industry, be sure to demonstrate your experience in it: offer real, measurable examples of your expertise in your chosen industry or of your experience of running successful businesses. Banks back those with a track record of success, so you’ll have to convince them you have the skill set, drive and experience to make their lending decision a successful one.

Owner’s equity.

If you expect lenders to put their “skin in the game,” they’re going to expect
you to do the same. As a general rule, you should personally invest 20% of the total projected
loan request. Your willingness to risk a sizeable portion of your own capital (and not just capital from their bank loans) shows your commitment to the venture.

Relationships are key.

Ultimately, securing a bank loan is about building a relationship with your bank, and if done correctly, your banker can become your biggest ally. If the banker knows you, your business operations and that you have good employees and a stable customer base, they
will be more likely to go out on a limb for you.

Having a good relationship with your bank can
make running your business a lot easier, so don’t underestimate it!

If you have a question about your raising capital for your Startup or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

5 Reasons to Attend The USD V2 Pitch Competition For Entrepreneurs

5 Reasons to Attend The USD V2 Pitch Competition For Entrepreneurs

On Thursday April 28th University of San Diego School of Business will hold an exciting competition in a “Shark Tank” like setting.

Top student entrepreneurs from USD and Tijuana will compete for a total of $100,000 in cash and invaluable mentorship and support.

The Startup Garage Team Compiled The Top 5 Reasons this is a must attend event:

1. There’s is no cost to attend.
It’s a completely FREE event although space is limited.
*HINT sign up early to reserve your seat.* When was the last time you had the opportunity to spent time with like minded entrepreneurs in a beautiful setting at no cost?
Register here

2. Absorb expert advice and insights from keynote speaker Tim Suski.

Tim co-founded one of the fastest growing boutique fitness franchise in Southern California, (The Rush Cycle Franchise) and also launched a technology platform used by 500+ businesses across the globe.

3. Fuel your entrepreneur inspiration.
The students pitching include a unique blend of entrepreneurs, each with their own innovative story and journey to share.

USD Current Student Entrepreneurs includes:

Lacy
Lacy is a bra washing machine (patent pending) that carefully protects bras and
delicates from the damage they normally endure during traditional washing methods.

FoldedColor
Technology company FoldedColor is an e-commerce solution for custom printed
packaging, offering standard and customizable folding carton options through a web-
to-print interface that includes instant pricing, an intuitive design editor, virtual 3D
proofing and online checkout.

TechMeetsTrader
This free social community for stocks and options investors, TechMeetsTrader
makes it easy to capitalize on investment opportunities and to learn from
experienced traders.

Like Cats and Dogs
Like Cats and Dogs produces a safe pet toy for both cats and dogs.

Bi-National Track Entrepreneurs Include:

AGROSOL
AGROSOL offers a fertilization, fumigation and geographical scanning system
performed by drones.

Baja Saver
Baja Saver generates clean and cheap energy through a product as small as a home
refrigerator that is 100 percent self-sufficient, more effective than wind and solar
systems and a better return on investment.

Ñapanga
Ñapanga produces and distributes a microbrew with a female focus.

FXR
FXR is an app used to request certified professional services for home repair and
maintenance.

4. Learn the art of pitching a Startup first hand.
Feel the presenters emotion and techniques when listening to a pitch, and tune into the panelist (potential “investors”) asking hard hitting questions.

5. Anyone can benefit from attending the V2 Pitch Competition.
Networking is key. “Meeting the right people and making connections to the San Diego start-up community is key to the success of any venture. We are lucky to bring in a unique crowd to the V2 Pitch Competition filled with investors, Entrepreneurs, alumni, and community partners. V2 has become an evening to connect, celebrate, and support our thriving San Diego and CaliBaja start-up ecosystem.” Regina Bernal, Entrepreneurship and Experiential Learning USD

Now that you’ve decided to join us, be sure to say hello to The Startup Garage Team!

We’ll have a table set up from 5-6pm at the Venture Fair prior to the event to answer any burning Startup Questions

Crowdfunding For Equity: Title III and Equity Crowd Funding 101

Business Plans and Crowdfunding

Crowdfunding For Equity: Title III and Equity Crowd Funding 101

What is Equity Crowdfunding?

Equity crowdfunding is on the rise after the signing of the Jumpstart Our Business Startups (JOBS) Act was signed by President Obama in April 2012.

Simply put, it is a type of crowdfunding that enables broad groups of investors to fund startup companies and small businesses in return for equity.

Three years after the JOBS Act was initially passed, Title IV (Regulation A+) went into effect, allowing larger companies to accept capital from both accredited investors (the wealthiest 2% of Americans) and non-accredited investors (the other 98% of Americans). This expanded when Title III (Regulation CF) was enacted in October 2015, which also allowed early stage companies to accept capital from both accredited and non-accredited investors.

More About Title III (Reg CF)

Title III allows startups and small businesses to raise up to $1M from the general public – an unprecedented way to raise capital. More specifically, investors who have less than $100,000 in both income and net worth may invest at least $2,000 per year, and as much as 5 percent of their income or net worth (whichever is less) per year.

Investors whose income or net worth is greater than $100,000 may invest up to 10 percent of their income or net worth (whichever is less) per year.

Thus, Title III gives companies that are historically underserved by the current capital markets an equal opportunity to equity financing.

On May 16th, Title III will officially go into effect.

Process

Choosing a Funding Portal

Under Title III, companies must use an online intermediary (either a broker-
dealer or crowdfunding portal registered with the SEC and FINRA), to facilitate a
fundraise. Experienced portals with a deep understanding of the regulations
surrounding Reg CF can help ensure that their campaigns are compliant with SEC rules.

Filing a Form C

Companies raising under Title III do not need to get SEC approval to initiate their
raise. They must, however, prepare a Form C and file it with the SEC 21 days prior to launching an offering. This form includes basic information about the company, its employees and the terms of the raise.

Disclosure Requirements – Financial Information

In addition to Form C, necessary financial information will depend on the size of
the intended investment needs:

 Under $100k – Internal financial statement review

 $100k-500k – CPA reviewed financial statements

 500k-1M – 3rd Party audited financial statements

 1st time crowdfunding issuers offering more than $500,000 would be permitted to provide reviewed, rather than audited, financial statements.

 Disclosure Requirements – Ongoing Reporting

Providing progress reports not only build trust with investors and keep them informed, but they’re also a very much required part of the disclosure requirements. Upon the successful closure of your campaign, you will be required to provide ongoing updates to your investors in the form of an annual report, which will include similar information that was included on the Form C.

In summary, what are the benefits and pitfalls of Title III?

Benefits:

 Title III can be an efficient way to quickly startups raise capital from the crowd

 More investors equate to more supporters in your startup

 Reporting requirements give founders and investors an opportunity to

Pitfalls:

 Current statutory disclosure obligations and costs are overly burdensome

 Legal and accounting fees may be higher than traditional capital-raising

 Title III does not include a “testing the waters” provision (like Reg A+ maintain a more open and transparent dialogue methods does) so that issuers can gauge interest before incurring burdensome filing and preparation costs

Remember, Regulation CF will become effective 180 days after the final rules are published in
the Federal Register on May 16, 2016.

If you have a question about your equity crowdfunding for your Startup or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

Why To Take Caution With Investor “Finders”

Why To Take Caution With Investor “Finders”

There are many service providers that offer to help startups with attracting investors, colloquially referred to as “finders.”

While they prefer to be called business brokers or consultants, most finders are either CPAs, insurance brokers, retired executives, or former entrepreneurs. They mostly operate in the Angel landscape, targeting deals between $100K to $2M.

Typically, they will either require a large retainer, an upfront fee, a percentage of capital raised, or some combination of all three.

The service they provide ranges from screening investors and setup meetings to developing a list of high-net-worth prospects for entrepreneurs to call on.

Unfortunately, there is a lot of controversy when working with finders. First, a sizeable majority of finders are not actually licensed as a securities broker by FINRA and are therefore in violation of federal and state security laws, whether they know it or not. Second, many finders are not capable of delivering on their promises or simply disappear as soon as you hand them a retainer check.

How This Affects You:

The issue that Startups face when working with unlicensed finders is that their legal problems can quickly spread to the startup as well. Payments to an unlawful finders can cause an entire transaction to violate securities law, giving investors a right to undo the deal as well as sue the Startup for damages.

Even if an investor does not undo the deal, these unlawful transactions can come back to haunt the company if and when the company decides to sell or go public as it may be forced to disclose the violations, thereby jeopardizing the pending deal. On the other hand, working with less than honest finders will clearly be a waste of time and money.

Advice:

Retain a good corporate securities attorney before you engage with a finder. Your securities attorney should be able to:

A) help you understand the full scope of risk of using finders in financing transactions.

B) help you verify that your potential finder is licensed with FINRA and your local state’s regulators.

C) ensure that your finder does not have any substantial complaints against them.

If you have a question about raising capital for your Startup or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

Business Plan Writer vs. Business Plan Strategic Consultant

Business Plan Writer vs. Business Plan Strategic Consultant

People often ask me, “What are my options for writing a business plan?”

At the highest level, there are two options, writing it yourself or hiring someone else to do it for you.

The benefits of writing the business plan yourself are that you will save money and you will learn a lot about your business by going through the research and financial modeling processes.

However, this can be a risky option if you haven’t written a business plan before and/or if you haven’t raised capital before.

It is important to have a solid understanding of the way investors see value in a company as well as the milestones they care about if you are going to be successful writing the business plan yourself.

Furthermore, even if you have a good grasp on the investors’ perspective, you often miss out on objective, third-party pushback that can elevate your business plan to the next level. Lastly, as a time-strapped entrepreneur, spending several hundred hours writing your plan probably isn’t the best use of your time as you should be focusing on developing your product, expanding your team, and establishing
awareness with your customers.

While hiring someone to write your business plan for you will save you a lot of time, the capital outlay may or may not be worth the time savings – who you hire to write your business plan will make all the difference.

Hiring a Business Plan Strategic Consultant that can elevate your plan and strategy to help increase your chance of nailing the first impression with investors is money well spent. However, hiring a Business Plan Writer that merely saves you time but doesn’t add value to your pitch is a waste.

Below we’ve provided the differences between a Business Plan Writer and a Business Plan Strategic Consultant.

Business Plan Writer

A Business Plan Writer can be half the cost, or more, of a Business Plan Strategic Consultant. Typically, these savings come at the expense of the quality of the final product (you get what you pay for type of thing).

A Business Plan Writer typically completes a business plan in far less time simply because they can only put a limited amount of time into the plan in order for their business model to be profitable.

The problem with this model is that a business plan isn’t complete once a certain amount of time has passed; a business plan is complete once all red flags and issues have been identified, addressed, and overcome.

At the end of the day, a Business Plan Writer will require you to present the content, solutions, and answers that they will plug into a cookie-cutter template. While a Business Plan Writer can certainly save you time, the plan will ultimately only be as good as the information and strategies you provide them.

Business Plan Strategic Consultant

Hiring a Business Plan Strategic Consultant is certainly more expensive than hiring a Business Plan Writer or writing the plan yourself. However, the result will pay off in the long run when it comes to providing yourself with the best chance possible of successfully raising capital.

First a foremost, a Business Plan Strategic Consultant brings specific experience and education in the startup sector beyond expertise in broad business writing.

Second, a Business Plan Strategic Consultant understands what it takes to attract capital. They have an intimate knowledge of the capitalization timeline, who invests at the various stages, and what investors need to see at each stage. They will be able to coach you on the milestones and accomplishments you should be focusing on while crafting the investment story.

Third, a Business Plan Strategic Consultant takes a holistic approach to assessing your business including monetization strategies and business models, target markets and competitive differentiation, management team and personnel plan, sales and marketing communication strategies, and more.

Fourth, a Business Plan Strategic Consultant identifies red flags and gaps in your model by asking tough questions and challenging your assumptions in a way that is constructive and educational.

Finally, a Business Plan Strategic Consultant will compile all of this information in investor friendly documentation (business plan, executive summary, pitch deck, financial projections, one-page business plan, etc) based on your specific needs and audience.

The Startup Garage is a recognized Business Plan Strategic Consultancy that helps founders raise capital and get out of the garage through proven business plan writing and startup strategy consulting services. Feel free to contact us for a free consultation!

Furry Innovation: Pets Are Startup Businesses New Best Friends

Furry Innovation: Pets Are Startup Businesses New Best Friends

It’s no denying it, we love our pets and we’re willing to spend countless amounts of money in order to enhance their health, happiness, and even appearance.

According to the American Pet Products Association an estimated $58.5 billion was spent on pets in 2014. With nearly $330 million on pet costumes for Halloween alone.

From OnDemand Pet Adoptions to “Furspray” the newest way to decorate your pet for special occasions, Pet Startups combine the love of animals with a high-growth business opportunity. However, along with business opportunities comes fierce competition.

Currently listed on Angel List, there are 490 Pet Startups with an average valuation of $3.7 million across a pool 1,012 Investors. Leading the pack and setting the investment stage are DogVacay and Bark&Co.

DogVacay offers an on demand approach to petsitting near home, having securing 4 healthy funding infusions since 2012. Including: $1 million dollar seed round in May 2012, $6 million Series A round in Nov. 2012, $15 million dollar Series B round in Oct. 2013, and $25 million in Oct 2014.

Bark & Co. leveraged an untapped business model of a monthly subscription box of dog goodies with BarkBox and continued to expand across several other major properties:

BarkPost: Your daily dose of doggy news
BarkShop: Spoil your pup with the very best
BarkBuddy: Find fluffy adoptable singles in your area
BarkLive: Amazing experiences for you and your dog

Also securing a steady funding infusion including: $25,000 in Jan 2012, $1.7million in July 2012, $5million Series A round in April 2013, and $15million Series B Round in July 2014.

Funding is so red hot for Pets Startups, if the U.S. pet products industry collectively was a Fortune 500 company, it would be bigger than Google, Dell, UPS, or Coca-Cola.

Meanwhile, like any high-growth industry, it’s attracting a new breed of startup entrepreneurs with furry ambitions.

Here are a few “underdogs” that captured our attention here at The Startup Up Garage.

XcDogs: Based out of Jackson Hole, Wyoming, and it connects people who travel with their pets to locals willing to pet-sit short-term who is actively seeking funding at this time.

CleverPet: a local San Diego Startup which with a “Smart” pet gadget that educates and interacts with your animal companion in your absence. CleverPet had a successfully funded Kickstarter campaign of $180,623 and appears to have a variety of undisclosed funding in Sept 2015.

Urban Leash: offers on demand dog walking and cat-sitting services from anywhere at anytime, who a secured a $99,500 seed round in Nov 2014.

AllPaws is OkCupid for Finding Pets to Adopt, Swiping left and right and sifting through profiles is a regular practice for people looking for love nowadays.

Through the website and app AllPaws, the same approach is being used for those looking for a four-legged soulmate. AllPaws raised $1 million in capital in April 2013.

Will the Pet Startups above disrupt the pet industry as we know it?
Only time will tell, if they’re barking up the right tree.

If you have a question about your Startup business idea or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

7 Reasons Why Hera Venture Summit Is A Must Attend Startup Event

7 Reasons Why Hera Venture Summit Is A Must Attend Startup Event

On Aug 4, 2015 The White House, Tech Giants, Entrepreneurs, and Venture Capitalists across America committed to invest in the future of women in business.

A commitment that set the stage for previously untapped opportunities for female founders.

Leading the forefront of female entrepreneurship is the conglomeration of
Hera Hub= Female focused Co-working Space

Hera Labs= Female Focused Business Accelerator
Hera Fund= Female Focused Angel Investment Fund

On Saturday Sept 19th, Hera Venture Summit unveils a new face of Women in Tech Events

Below are 7 undeniable reason YOU’ll want to attend!

1. The Hera Venture Summit offers the ultimate platform for female founders and funders to discuss and collaborate in launching, growing and sustaining profitable businesses.


2. There’s not just 1 but 2 Keynote Speakers, excited to share their experience and expertise.



Elissa Shevinsky, a Startup CEO and Co-Founder at JeKuDo Privacy Company, a veteran coder, and editor of ‘Lean Out’ which encourages women to create their own culture in Tech Startups.



Consuelo Valverde, an Entrepreneur turned VC at SV LATAM Fund. At the age of 20, she founded one of the first PC manufacturing companies in Mexico and later on an IT learning institute.



3. Beautiful environments fuel inspiration. The event takes place at the University of San Diego an architectural dream, named by Travel+Leisure magazine one of the most beautiful college campuses in the United States. 


4. One-day intensive and interactive event. Often times events are spread across a weekend, 3 days, or even week long. The Hera Venture Summit takes Startup growth hacking to a new level, fully emerging everyone into the conversation in an action packed 10 hour event.

5. The theme of the event centers around “Building Bridges” both locally, binational, and globally. Holding course to the idea that through each other’s diversity comes expansion, both personally and professionally.

6. 7 Panels of unique content, covering everything from topics of gender investing and female founder ROI to how to become a female angel investor.


*Tyler Jensen founder of
The Startup Garage will be will be part of the panel


“All about the Financials.”

7. Happy Hour, the event concludes with the ultimate networking opportunity over cocktails. The perfect place to share insights gained throughout the day, and make life long connections.

Now that you’ve decided to join us be sure to say hello to The Startup Garage Team!

Tickets can be bought here>> Hera Venture Summit 9/19

Feel free to enter promo code startupgarage40off for $40 off this once in a lifetime event.

28 Essential Hashtags To Use For Your Startup Business

28 Essential Hashtags To Use For Your Startup Business

Hashtags or the #symbol were originally created as a way to categorize messages, making it easier for users to find messages with a specific theme or content.

Hashtags ultimately help connect your Startup Business with an audience that shares similar interests, views, and insights.

When used routinely along with captivating relevant content, hashtags have the power to unleash tremendous value for your social network.

The hashtag list below includes hashtags that are in the “sweet spot” for growing your sphere of influence on both Twitter and Instagram.

These are hashtags that have been used over 2,000 times but less than 10,000. Therefore, they’re well known hashtags, yet not overly trending at this time. This sweet spot will allow for making it more likely your Startup’s content won’t get lost in the noise.

Funding: Hashtags relevant to raising capital for your Startup.

    #PrivateEquity
    #GetFunded
    #VentureCapital
    #Bootstrapping

Life: Hashtags relevant to the day to day working of Startups.

    
#TechStartup
    #StartupGrind
    #StartupBusiness
    #StartupCompany
    #StartupQuotes
    #StartupProblems
    #LeanStartup

Entrepreneurship: Hashtags relevant to being a Startup Entrepreneur.

    #EntrepreneursOfInstagram
    #Entrepreneursmindset
    #HappyFounders
    #FemaleEntrepreneur
    #WomeninTech

Business:Hashtags relevant to the business components of a Startup.

    #BusinessStartups
    #BusinessTips

Culture: Hashtags relevant to the culture and Startup environment.

    #SharingEconomy
    #TechnologyTuesday
    #InternetofThings
    #HustleHardWednesday
    #SharktankNation
    #TechnologyTuesday
    #WearableTech/#WearableTechnology

Trending: These are very popular and widely used Startup Hashtags.

They fall outside the scope of the “sweet spot” but are still worth leveraging.

    #Entrepreneurship
    #SiliconValley
    
#StartupWeekend
    #Startuplife

    #Innovative
    #SharkTank
    #Entrepreneur/ #Entrepreneurs
If you have a question about your Startup business idea or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

SEC Oks Equity Crowdfunding with Regulation A+ Changes to the JOBS Act

SEC Oks Equity Crowdfunding with Regulation A+ Changes to the JOBS Act

On March 25, 2015 the SEC amended Regulation A, commonly referred to as Reg. A+, to further implement Title IV of the JOBS Act.

The amended regulation seeks to create an environment where emerging enterprises can efficiently raise public capital through crowdfunding.

Historically, Reg A has not been widely used for two reasons:
1) the $5M offering size limit was perceived as too low

2) the blue ski registration and qualification requirements were too onerous.

To address these concerns, Reg A+ increases the offering size limit to $50M in a Tier 2 offering and up to $20M in a Tier 1 offering.

Additionally, certain Reg A+ companies will be able to avoid the SECs blue sky reporting regime.

Reg A+ are public offerings, similar to an IPO, however the regulatory obstacles are far lower thereby making this type of investment much more accessible to all investors, accredited or otherwise.

This is particularly welcoming to small and medium sized businesses that struggle to raise capital from high net worth investors or institutions. These small and medium businesses can now raise capital from a much larger pool of investors (commonly referred to as the crowd) which will increase capital formation thereby growing jobs and the economy as a whole.

There are still many nuances associated with Reg A+ but overall the SEC’s amendment is widely seen as a step in the right direction. Some of the differences between Tier 1 and Tier 2 regulations are outlined the chart below:
Equity Crowdfunding From The Startup Garage

If you have a question about your Startup business idea or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!