Hey!
Happy Wednesday! Hope February is treating you well.
It's Jose here, founder of Space Funding. Today I want to talk about something that could fundamentally change how you raise capital—and most founders have no idea it's happening.
Congress is considering major reforms to Regulation CF and Regulation A+. And if these changes go through, the capital raising landscape will look completely different by the end of 2026.
Let me break down what's at stake.
🚀 The Numbers That Tell the Real Story
Since the JOBS Act passed, Regulation CF and Regulation A+ have enabled businesses to collectively raise nearly $9 billion.
Let me put that in perspective:
Reg CF has raised over $2.4 billion since 2016. That's 110,976 jobs created in 2024 alone, up from just 6,432 jobs in 2016. Every dollar invested through Reg CF generates a 10x return in economic activity—$26 billion reinvested into local economies.
Reg A+ has raised over $6.5 billion, funding companies across industries that traditional venture capital won't touch.
But here's the kicker: Regulation D, available only to accredited investors, has raised over $10.8 trillion in the same timeframe.
Read that again. $10.8 trillion for accredited investors. $9 billion for everyone else.
That's the capital imbalance we're fighting against at Space Funding.
💡 Why Growth Has Slowed (And What's About to Change)
Despite the massive success of Reg CF and Reg A+, both exemptions are being held back by outdated caps.
Reg CF is capped at $5 million per offering. Growth has slowed because companies hit that ceiling and have nowhere to go except traditional VC (good luck) or Reg A+ (more expensive and complex).
Reg A+ is capped at $75 million. New offerings have declined by 24% from 2021 to 2024 because promising companies in capital-intensive industries like biotech and infrastructure need more runway.
Meanwhile, venture capital funding plummeted by 49% in 2023, while Reg CF only declined by 15%. When the economy gets tough, community capital stays resilient. Institutional capital runs for the hills.
The proposed reforms would change everything:
✅ Raise the Reg CF cap to $10M+ – This would unlock significant growth potential and allow more businesses to scale without artificial constraints.
✅ Increase the Reg A+ cap to $150M – This enables mid-market companies to thrive, particularly in industries with high capital demands.
✅ Introduce tax incentives for retail investors – Similar to retirement account advantages, this could stimulate massive market participation.
✅ Streamline compliance – Simplifying regulatory requirements for Reg A+ would reduce friction and improve market efficiency.
✅ Harmonize Reg CF and Reg A – Aligning the rules would simplify compliance and support businesses at all stages of growth.
If these reforms pass, projections indicate a $2.3 billion capital flow over the next four years, translating to 46,000 new jobs.
🎯 What This Means for Founders Right Now
Here's what you need to understand:
The future of capital markets is inclusive. Retail investors deserve access to the same wealth-building opportunities as institutional players. Founders deserve access to capital without giving up control to VCs who only care about 10x returns in 5 years.
At Space Funding, we've been building for this exact moment.
We've been involved in raising over $210 million through Reg CF, Reg A+, and Reg D. We've helped companies across every sector—sports teams, consumer brands, clean tech, real estate, technology—tap into community capital at scale.
We know how to navigate these exemptions. We know how to structure raises that maximize the current caps. And we know how to position you for even bigger raises if these reforms pass.
Here's why this matters for you:
If you're planning to raise capital in 2026, understanding Reg CF and Reg A+ isn't optional. It's strategic.
These exemptions offer:
Diverse industry support – Unlike VC, which favors tech and biotech, Reg CF and A+ support consumer products, manufacturing, clean energy, and more.
Flexibility for founders – Raise on your own timeline, not on investor-driven growth benchmarks.
Resilient capital – Community capital stays committed when institutional money disappears.
Marketing engines – Every investor becomes a customer, advocate, and recruiter for your brand.
We've helped companies turn their raises into full-blown marketing campaigns. High-converting funnels. Paid acquisition at scale. Automated nurture sequences. Investor communities that drive long-term growth.
And if Congress passes these reforms? The companies that already know how to use these exemptions will have a massive advantage.
🚀 How Space Funding Helps You Structure Everything Correctly
Here's the truth: SPVs are powerful, but only if they're set up properly.
At Space Funding, we've been involved in raising over $210 million through Reg CF, Reg A+, and Reg D. We've structured dozens of SPVs. We know exactly how to navigate the legal requirements, filing obligations, and administrative details.
When you work with us, we handle:
✅ SPV Formation - Setting up the legal entity correctly based on your exemption type
✅ Cap Table Management - Ensuring your capitalization table stays clean and fundable
✅ Compliance - Filing all required forms (Form C for Reg CF, Form 1-A for Reg A+)
✅ Investor Administration - Managing communications, voting rights, and K-1 distribution
✅ Future Fundraising - Structuring your SPV so it doesn't complicate future VC or PE rounds
We make sure things are done properly from day one, so you don't end up with legal headaches later.
Whether you're raising $500K through Reg CF, $10M through Reg A+, or $50M through Reg D—we've built the infrastructure to help you structure it correctly.
📞 Ready to Capitalize on This Shift?
Whether you're raising $500K through Reg CF, $10M through Reg A+, or building a hybrid strategy with Reg D—we have the infrastructure, experience, and track record to help you succeed.
We specialize in taking hundreds of hours off your plate by converting capital raising into simple e-commerce. You focus on growing your business. We handle the investor acquisition, qualification, and conversion.
If you're serious about raising capital in 2026, let's talk.
Book a strategy call with our team. We'll walk you through how Reg CF, Reg A+, and Reg D work today, how the proposed reforms could impact your raise, and how to build a capital stack that positions you for success.
Have an amazing rest of your week. And if this changed how you think about capital raising, share it with a founder friend who needs to hear it.
See you next Wednesday,
Jose
Founder, Space Funding
Democratizing access to capital, one raise at a time.
www.spacefunding.us
P.S. — The gap between accredited and retail investor access is $10.8 trillion to $9 billion. We're working to close that gap. If you want to be part of the movement, let's make it happen.
