The Morning Risk Report: The Shortcut That Allows Risky Startups to Raise Billions From Rookie Investors
Briefly

Risky startups are leveraging a regulatory exemption to hype their moonshot products and raise significant funds from individual investors. This loophole, known as Regulation A, allows companies to raise up to $75 million annually with lighter-touch rules than traditional IPOs.
Companies like Aptera Motors and Boxabl have attracted tens of thousands of small investors who have poured $170 million into their ventures. However, investors have little to show for it, as the companies fail to deliver on promises, struggle with sales, and continuously seek more funding.
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