Aug 16, 2021
New York City, NY USA

The Securities and Exchange Commission (SEC) recently made meaningful changes to multiple securities exemptions, which will increase access to capital, while preserving and enhancing important investor protections.

Among these changes, the SEC has increased Reg CF cap limits from its current $1.07 million funding cap to $5 million and Reg A+ (Tier 2) to $75 million. 

Reg CF, otherwise known as Regulation Crowdfunding, enables eligible companies to offer and sell securities including raising money through the increasingly popular vehicle of crowdfunding.

These higher limitations may increase issuer and investor access to these types of private placements. For example, the $1 million offering limit for Reg CF offerings made the cost of capital extremely high and thus the exemption has been little used.

A $5 million limit has the potential to greatly increase the utility of Reg CF, particularly for early stage projects relying on innovative technology.

In order to respond to this momentous shift, Young America Capital and Capital Engine® have partnered to build a new Reg CF portal Young America Partners due for launch in Q4/21.

Several other improvements have also been incorporated into the securities exemption including:
  • Issuers can now utilize "Testing the Water" to gauge investor interest before launching a securities offering
  • Accredited investors are no longer subject to the same investment cap as non-accredited investors.
  • Issuers can use a new “crowdfunding vehicle” or special purpose vehicle (SPV)
  • Demo Days are excluded from being considered as “General Solicitation”

Equity crowdfunding continues to establish itself as an innovative way for companies to raise capital from investors, with experts predicting that the funding cap increase could see over $1.2 billion invested using  Reg CF over the next 12 months.

About Young America Capital

Young America Capital is a FINRA/SEC licensed broker dealer based in New York, serving the investment banking needs of early stage and middle market companies, offering specialized services to both funds and investors in the alternative Investment arena.

Through its team of experienced investment banking advisors and funds marketing executives, Young America Capital provides customized services to raise debt and equity capital, engage in buy and sell side mergers & acquisitions, and secure institutional capital commitments for established or new alternative fund managers.

About Capital Engine®

Capital Engine® is a fast-growing FinTech company facilitating the creation of efficient and trusted online private capital and alternative investment marketplaces, through our tiered business ecosystem: private label platforms, strategic partnerships and inhouse marketplace for private placements. 

Capital Engine® will provide an onboarding, showcasing, investment management solution together with capital raising, investing / tracking deal flow and investor reporting functionality for the new Reg CF portal.

The business model of Capital Engine® is to partner with industry experts like Young America Capital in venture capital, renewable energy, impact investing, healthcare, real estate, philanthropy and alternative investments, in setting up investment platforms, online marketplaces and trading exchanges using our proprietary software.

For investor relations enquiries:

Peter Formanek
YA Capital
Phone: (914) 777-0100
Email: peter@yacapital.com 

Twitter: https://twitter.com/YoungAmericaCap 
Linked In: https://www.linkedin.com/company/young-america-capital 

Bryan Smith
Capital Engine® Powering Online Capital Markets
Toll Free: (800) 806-7570
Email: invest@capitalengine.io

Twitter: https://twitter.com/CapitalEngine 
Linked In: https://www.linkedin.com/company/capitalengine/