Reg A+: What is it, and why does it make Cocannco different?
What is Regulation A+?
Regulation A+ was signed into law as part of the JOBS Act in 2012. This Act means entrepreneurs have greater access to capital, and non-accredited investors have greater access to investing in high-growth companies.
It is, in essence, crowdfunding.
The significance of crowdfunding in the cannabis space
Before Regulation A+, private companies could only accept investments from accredited and a limited number of non-accredited investors – which is only the wealthiest 2% of Americans!
The SAFE Banking Act failed at the end of 2022. VC investments are down 95%, and this caused most institutional capital to steer clear as well. The cannabis industry’s access to capital is throttled, and until now, the industry has been 100% funded by private wealth.
With this downturn in the market and predatory-like lending being all that’s left to cannabis businesses in search of capital, this opens up the opportunity for the public to take the place of private investors.
Cocannco’s Reg A+ offering will open up a pipeline to get funding for well-vetted cannabis companies starving for capital. The general public can take the place of accredited investors to fund the cannabis industry.
What crowdfunding means for long-term growth
We believe in the cannabis industry’s long-term growth. New Frontier Data reports that in the US, cannabis sales are poised to surpass the $50 billion mark in 2025. Changing attitudes toward cannabis is undoubtedly a factor in market growth and upward consumer trends.
It’s only a matter of time before cannabis is federally legalized and private wealth dominates the cannabis market once again. During this time that cannabis access to capital is throttled, those companies with access to crowdfunding have the potential to build stronger foundations upon which to grow.
Cocannco’s Reg A+ program
Cocannco is eligible for Reg A+, which means that once qualified, we can sell shares to the general public, not just accredited millionaires.
As a fundraising company that prioritizes crowdfunding and a broad investor base, we can also continually return to our investors for more funds as companies scale. At the same time, we want to connect the general public to the best companies to which they wouldn’t otherwise have investment access.
We provide the cash infusion they need to grow using our crowdfunding platforms.
Unlike other firms, we raise these funds without any intention of taking over the company operations or squeezing them dry for our gain. We want to support successful teams and serve as their ongoing fundraising partners as they grow through expansion or acquisition.
The minimum investment is only $500.
Ready to get in on the ground floor?