RAISE CAPITAL THROUGH CROWDFUNDING
At the Most Affordable Rate...
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Identify if a crowdfunding offering is right for your business
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Draft the required offering documents
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Qualify or approve the offering through the SEC
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Connect you with third-party service providers to ensure the offering is a success
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Comply with ongoing SEC filing requirements
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Exemptions from registration (Reg. CF and Reg. A)
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Raise up to either (i) $1,070,000, or (ii) $50 million over 12 months
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Issue free-trading shares (Reg. A)
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Limited SEC disclosure
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Limited financial statement requirements (Reg. CF and Reg. A Tier 1)
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No PCAOB audit required (Reg. A Tier 2)
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Non-accredited investors allowed
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General solicitation allowed
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For additional information on Reg. CF please click here
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For additional information on Reg. A please click here
For FAQs on Reg. A please click here
What are the general requirements to satisfy Crowdfunding as an exemption from registration?
Under Regulation Crowdfunding:
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All transactions under Regulation Crowdfunding must take place through an SEC-registered intermediary such as a broker-dealer or a FINRA-registered funding portal. A list of all FINRA-registered funding portals can be found here.
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Companies are allowed to raise an aggregate of $1,070,000 in a 12-month period.
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Investors are limited in the amount they can invest in crowdfundings in a 12-month period.
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SEC disclosure is required in a Form C and subsequent filings.
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What are the benefits and downsides of using Regulation Crowdfunding as an exemption from registration?
The benefits to using a Regulation Crowdfunding exemption are as follows:
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Issuers may offer and sell to investors who are not “accredited investors;”
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Issuers may conduct concurrent private offerings (such as pursuant to Rule 506(c) of Regulation D);
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Issuers are subject to limited SEC reporting requirements; and
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Broadens issuer shareholder base.
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The downsides to using a Regulation Crowdfunding exemption are as follows:
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Offers and sales must be made through an intermediary;
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Issuers relying on Regulation Crowdfunding must file a Form C with the SEC which must include financial statements;
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Investors may only invest subject to certain limitations;
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Securities sold in Regulation Crowdfunding offerings generally cannot be resold for one year;
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Bad-actor disqualifications apply to Regulation Crowdfunding offerings; and
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Investors who are not high net-worth individuals are not accustomed to investing in high-risk small companies which means they may require more attention than high net-worth individuals.
What are the requirements for financial statements in a Regulation Crowdfunding offering?
What are the requirements for financial statements in a Regulation Crowdfunding offering?
What are the investor limitations in a Regulation Crowdfunding offering?
