b'How to Legally Raise Private MoneyRegulation A+ seeks to solve that problem by allowing advertising of securities offerings to the general public with a streamlined pre-approval process. Under Tier 1, anyone can invest with no financial limitations. Un-der Tier 2, an investor can invest up to 10% of his or her net worth or 10% of his or her gross annual income (whichever is greater). This opens up a new audience for issuers who cant access enough accredited investors to fund their deals, and who already know a lot of non-accredited investors who would like to invest with them. Both Tier 1 and Tier 2 issuers can test the waters by floating advertising materials amongst the public to gauge interest prior to approval of the offering.This can help Regulation A+ issuers figure out what to offer, and to build a prospective list of interested investors prior to launch of the of-fering. Until the offering has been approved by the applicable regulators, however, they cannot collect any money.Like Rule 506(c), Regulation A+ has a Rule 262 that prohibits participa-tion by certain bad actors. Regulation A+, Tier 1 Regulation A+, Tier 1 is an amended version of the former Regulation A. Tier 1 issuers may now raise up to $20 million as opposed to the pre-JOBS Act $5 million limit. Tier 1 does not have any audit requirements. This is great if you are an issuer looking to save on audit and accounting costs, as audits can be expensive, but the tradeoff is that audits give investors peace of mind and a sense of transparency. As a Tier 1 issuer, you would still be required to get state pre-approval of the offering before your com-pany would be allowed to advertise. This means that in order to sell its securities, your Tier 1 company would have to subject itself to the scrutiny of every state regulator where it intends to sell securities. The review fees for such states could potentially exceed the cost of an audit. Filing fees vary from state to state from as little as $100 to as much as $5,000. A summary of the rules for Regulation A+ (Tier 1) offerings:The issuer is limited to raising $20 million in a 12-month periodThe issuer may have an unlimited number of investors, with no prequalification requirementState pre-approval is required60'